Botswana

Title: Household Income and Expenditure Survey ( HIES )

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Central Statistics Office of Pibag 0024 Gaborone Bostwana, phone: 267 3188 500, fax: 267 3188 610, e-mail: dbuthall@gov.bw.
Data have been collected by household survey since 1974. ¹

2. Purpose and coverage

The following purposes are considered to be very important or of some importance:

to obtain weights for consumer price index
to estimate household expenditure for national accounts
to study the general structure of household incomes/expenditures
to study income/expenditure patterns of disadvantaged groups, including pensioner households, single parent households, etc
to study income/expenditure disparities among socio-economic groups
to study consumer behaviour among socio-economic groups
for general poverty and/or income distribution studies
to study effects on income and expenditure of policy changes, especially tax changes
for market research purposes

Geographic coverage: National without any specific geographic areas excluded.

Population coverage:
The following types of household are included in the data collection:

one person private households
private households with more than one person
households of other foreigners in the country
armed forces residing in private housing within military base
armed forces residing in private housing outside military base

The following types of household are excluded in the data collection:

those in collective housing (such as long term hospitals, prisons, monasteries, military quarters)
non-resident households of nationals (households of nationals located abroad)
diplomatic households in the country

Units:
Dwelling units are used in the sample selection and are characterised by:

single structure - detached housing unit
single unit in a structure containing more than one housing unit
multiple structures within a compound (e.g. huts)

Data are recorded for the household unit which is characterised by:

one person units
two or more people living together:
- sharing a single dwelling or compound
- sharing meals
- sharing a common budget for (at least) food and housing expenditures
- pooling their income to some extent

Data are recorded for the income unit which is characterised by:

two or more people:
- living in the same household
- sharing a single dwelling or compound
- pooling their income to some extent

Data are recorded for the consumer unit, expenditure unit or spending unit which is characterised by:

two or more people:
- sharing a common budget for (at least) food and housing expenditures

Unit members: Usual residents temporarily living away from the dwelling are included, if away continuously for less than 15 days. Visitors (not usual residents) temporarily living in the dwelling are included, if staying continuously for more than 15 days. Domestic staff living in same dwelling/compound are not included in the unit. Renters living in same dwelling/compound are not included in the unit. Boarders living in same dwelling/compound are not included in the unit.

Head of unit: ²
The concept of head of household/other unit is used in this survey and is characterised by:

acknowledged as such by other household/unit members

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 11/93 to 02/95.These data are collected in the period from 11/93 to 02/95. This survey is conducted 10-yearly. The statistics are published 10-yearly.

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are enumeration area/district, none and household respectively.

Stratification:
Areas/districts were stratified using the following criteria:

geographical regions
rural/urban
administrative districts

Households/Consumption Unit, Income Unit, Family Unit were stratified using the following criteria:

income class

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were the list of Census enumeration areas and a separate listing exercise respectively. Primary Sampling Units (PSU) were selected using probability proportional to size and Ultimate Sampling Units (USU) were selected using systematic sampling. The sample size was 3800 households or other units. Errors/biases were minimized by using an increased sample size.

Enumeration procedure: Enumeration uses a single round survey design in which each reporting unit is enumerated only once. No action is taken to select a smaller set of reporting units for more detailed questioning.

DATA COLLECTION, CONCEPTS, DEFINITIONS AND CLASSIFICATIONS

5. Income data

Income data are collected. Receipts do not have to be regular and recurring to be considered as income. Income includes receipts resulting from the sale or reduction of assets and/or from incurring liabilities are included in income. Income excludes receipts that are not currently available to the unit.

The following receipts are collected separately:

wages and salaries
cash bonuses and gratuities
commissions and tips
remuneration for time not worked, e.g. leave pay
termination and redundancy payments
employee income in-kind provided free or subsidized: housing
employee income in-kind provided free or subsidized: meals
employee income in-kind provided free or subsidized: car/transportation
employee income in-kind provided free or subsidized: goods or services produced by employer
goods produced for own consumption, gross of inputs
services produced for own consumption, gross of inputs
goods produced for barter, gross of inputs
services produced for barter, gross of inputs
services from owner-occupied dwellings
services from other consumer durables (net)
interest received
dividends
rentals (payment received for produced assets e.g. house), gross of expenses
rents (payment received for un-produced assets e.g. land)
royalties
regular pensions/annuities from schemes to which employee does not contribute
retirement pensions from compulsory social security schemes
old age benefits
other pensions
invalidity benefits
education-related allowances
housing allowances
survivors benefits
free government dwelling
medical reimbursements
other social insurance benefits
other social assistance benefits
regular inter-household transfers received from: family, e.g. alimony, child/parental support
regular inter-household transfers received from: regular inheritances or trusts
regular inter-household transfers received from: regular cash gifts
regular inter-household transfers received from: regular in-kind gifts
regular inter-household transfers received from: free dwelling
regular inter-household transfers received from: subsidized dwelling
regular inter-household transfers received from: regular free services

The following receipts are collected but not separately:

employer social security contributions
profit/loss from unincorporated enterprises (mixed income)
drawing for own use from unincorporated enterprises
stock consumed from unincorporated enterprise
subsidized government dwelling
regular support received from non-profit institutions serving households: cash, e.g. scholarships
regular support received from non-profit institutions serving households: goods and services
regular support received from non-profit institutions serving households: free dwelling
regular support received from non-profit institutions serving households: subsidized dwelling

The following receipts are not collected:

employee social security contributions, excluded for other reasons
unemployment benefits
family-related allowances
sickness benefits
food subsidies
social transfers in kind: medical services
social transfers in kind: public education
social transfers in kind: transport subsidies
social transfers in kind: cultural and recreational services

The following receipts are classified as income from paid employment:

wages and salaries
cash bonuses and gratuities

The following receipts are classified as income from self-employment:

profit/loss from unincorporated enterprises (mixed income)

The following receipts are classified as property income:

services from owner-occupied dwellings
services from other consumer durables (net)
rentals (payment received for produced assets e.g. house), gross of expenses
rents (payment received for un-produced assets e.g. land)
royalties

The following receipts are classified as transfer income but not employment-related:

regular pensions/annuities from schemes to which employee does not contribute
regular support received from non-profit institutions serving households: cash, e.g. scholarships
regular support received from non-profit institutions serving households: goods and services
regular inter-household transfers received from: family, e.g. alimony, child/parental support

The following receipts are classified as other employment-related income:

commissions and tips
employer social security contributions
employee income in-kind provided free or subsidized: housing
employee income in-kind provided free or subsidized: meals
employee income in-kind provided free or subsidized: car/transportation
employee income in-kind provided free or subsidized: goods or services produced by employer
housing allowances

The following receipts are classified as other income but not employment-related:

remuneration for time not worked, e.g. leave pay
termination and redundancy payments
drawing for own use from unincorporated enterprises
goods produced for own consumption , gross of inputs
services produced for own consumption, gross of inputs
goods produced for barter, gross of inputs
services produced for barter, gross of inputs
stock consumed from unincorporated enterprise
interest received
dividends
retirement pensions from compulsory social security schemes
old age benefits
other pensions
invalidity benefits
education-related allowances
survivors benefits
free government dwelling
subsidized government dwelling
medical reimbursements
other social insurance benefits
other social assistance benefits
regular support received from non-profit institutions serving households: free dwelling
regular support received from non-profit institutions serving households: subsidized dwelling
regular inter-household transfers received from: regular inheritances or trusts
regular inter-household transfers received from: regular cash gifts
regular inter-household transfers received from: regular in-kind gifts
regular inter-household transfers received from: free dwelling
regular inter-household transfers received from: subsidized dwelling
regular inter-household transfers received from: regular free services

The following receipts are excluded for other reasons:

employee social security contributions

The following receipts are collected using the last week as the reference period:

goods produced for own consumption, gross of inputs
services produced for own consumption, gross of inputs
goods produced for barter, gross of inputs
services produced for barter , gross of inputs
stock consumed from unincorporated enterprise

The following receipts are collected using the last month as the reference period:

wages and salaries
cash bonuses and gratuities
commissions and tips
employer social security contributions
employee income in-kind provided free or subsidized: housing
employee income in-kind provided free or subsidized: meals
employee income in-kind provided free or subsidized: car/transportation
employee income in-kind provided free or subsidized: goods or services produced by employer
profit/loss from unincorporated enterprises (mixed income)
drawing for own use from unincorporated enterprises
services from owner-occupied dwellings
services from other consumer durables (net)
interest received
rentals (payment received for produced assets e.g. house), gross of expenses
rents (payment received for un-produced assets e.g. land)
regular pensions/annuities from schemes to which employee does not contribute
old age benefits
other pensions
housing allowances
free government dwelling
subsidized government dwelling
regular support received from non-profit institutions serving households: cash, e.g. scholarships
regular support received from non-profit institutions serving households: goods and services
regular support received from non-profit institutions serving households: free dwelling
regular support received from non-profit institutions serving households: subsidized dwelling
regular inter-household transfers received from: family, e.g. alimony, child/parental support
regular inter-household transfers received from: regular inheritances or trusts
regular inter-household transfers received from: regular cash gifts
regular inter-household transfers received from: regular in-kind gifts
regular inter-household transfers received from: free dwelling
regular inter-household transfers received from: subsidized dwelling
regular inter-household transfers received from: regular free services

The following receipts are collected using the last 12 months as the reference period:

remuneration for time not worked, e.g. leave pay
termination and redundancy payments
dividends
royalties
retirement pensions from compulsory social security schemes
invalidity benefits
education-related allowances
survivors benefits
medical reimbursements
other social insurance benefits
other social assistance benefits

Income data were collected separately for each person receiving income. Components of income for an individual were collected directly from the individual. ³ Negative values (business losses) were included when computing self-employment income.

6. Expenditure data

Data collection method:
Diaries are used to collect expenditure data and are maintained for one month.

Diaries are used to collect expenditure on the following items:

food
alcohol, tobacco
other household non-durables (such as newspapers, batteries)
clothing, footwear
other personal non-durables (such as perfumes)
household services (such as plumber)
personal services (such as driving lessons, haircuts)

Interviews are used to collect expenditure data with the respondent completing the interview by a mix of recall and using documentation.

Data for the following expenditure items are collected by referring:

to expenditures last week:
- food
- other household non-durable goods
- clothing, footwear
- other personal non-durable goods
- households services
- personal services

to expenditures in last 12 months:
- housing
- other durable goods

The following types of expenditure items are classified as 'Household consumption expenditure':

non-durable goods purchased
durable goods purchased (except housing)
mortgage repayments, including interest
major repairs, conversions and extensions to owner-occupied housing
services from durables owned (except housing)
interest payments (excluding mortgage interest payments)
financial services (including fees for financial advice, brokerage fees)
non-life insurance premiums (e.g. vehicle, housing, other property, medical)
licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
gambling expenditure
out of pocket health expenditure, net of claims
out of pocket education expenditures, net of refunds
out of pocket transport expenditures, net of refunds
housing maintenance, minor repairs
second hand goods purchased
occupational expenditures

The following types of expenditure items are classified as 'Actual Household consumption':

purchase price of owner-occupied housing
services of owner-occupied housing
income in-kind receipts of goods
income in-kind receipts of services
own produced non-durable goods
own-produced durable goods
own-produced services
in-kind goods received from other households
in-kind services received from other households
social transfers in-kind of goods and services from government and non-profit institutions serving households
purchase of gifts of goods and services given to others outside the household

The following types of expenditure items are classified as 'Non-consumption household expenditure':

life insurance premiums
regular cash payments to others outside the household
non-regular cash payments to others outside the household
compulsory transfers to governments (e.g. contributions to government old age and disability insurance program, taxes)
investment-related expenditures (e.g. purchase of shares/stocks)

The following types of expenditure items are classified as 'Non-household expenditure':

other business-related expenditures

The following types of expenditure items are excluded for other reasons:

expenditure abroad

The following types of expenditure items are collected on an 'acquisitions' basis:

income in-kind receipts of goods
income in-kind receipts of services
in-kind goods received from other households
in-kind services received from other households
social transfers in-kind of goods and services from government and non-profit institutions serving households

The following types of expenditure items are collected on a 'use' basis:

purchase price of owner-occupied housing
services of owner-occupied housing
own produced non-durable goods
own-produced durable goods
own-produced services

The following types of expenditure items are collected on a 'payments' basis:

non-durable goods purchased
durable goods purchased (except housing)
mortgage repayments, including interest
major repairs, conversions and extensions to owner-occupied housing
services from durables owned (except housing)
interest payments (excluding mortgage interest payments)
financial services (including fees for financial advice, brokerage fees)
non-life insurance premiums (e.g. vehicle, housing, other property, medical)
life insurance premiums
licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
gambling expenditure
out of pocket health expenditure, net of claims
out of pocket education expenditures, net of refunds
out of pocket transport expenditures, net of refunds
housing maintenance, minor repairs
regular cash payments to others outside the household
non-regular cash payments to others outside the household
purchase of gifts of goods and services given to others outside the household
second hand goods purchased
compulsory transfers to governments (e.g. contributions to government old age and disability insurance program, taxes)
investment-related expenditures (e.g. purchase of shares/stocks)
occupational expenditures
other business-related expenditures

Classification: A national classification is used for classifying expenditure and has an unspecified number of separate categories at the finest level. The classification is consistent with COICOP at the Group (3 digit) level.

7. Other Data Collection Issues

The following other topics are covered:

demographic characteristics
education attainment of members
employment status of members
occupation of members
ownership of selected durable goods
housing characteristics
savings

Households are not requested to indicate whether durable goods are new or second-hand when their acquisition is recorded.

Non-response: There is no substitution for non-response, whether by non-contact or by refusal.

Non-response is reduced using more than one repeat visits. Reporting errors are reduced using careful instrument design.

DATA PROCESSING, ANALYSIS AND DISSEMINATION

Answers are pre-coded on data collection forms to the extent possible.

The responses are edited office staff.

Extreme values are amended. In-kind receipts and consumption of own production are included in the estimates. In-kind receipts are valued using: the respondent's estimate. Consumption of own production is valued using: the respondent's estimate.

Treatment of owner-occupied housing: Values of owner-occupied housing are included in the total income/expenditure estimates and are valued using the rental equivalent net of housing costs usually paid by owners.

The following information is used in this valuation:

imputed based on housing and rent data

Treatment of selected groups/values in analysis: Some households/units are excluded from analysis because of incomplete response. Missing values are imputed only on some occasions when other detail information is available. Supplementary sources are used to adjust estimates for under- or over-reporting. Etnic groups are excluded from data analysis.

Weighting:
Weighting factors are used to adjust for:⁴

sampling
non-response
bench-marking

Sampling errors: Sampling errors are computed for major aggregates and these sampling errors are available on request.

Tabulation and Analysis: Statistics are presented showing averages per month and statistics are analysed and tabulated for households only.

The following classifications are used for tabulation and analysis of income statistics:

age of reference person or head of household
sex of reference person or head of household
occupation of reference person or head of household
other characteristic of reference person or head of household, i.e. marital status, education, trainings
income percentiles, (quintiles)
absolute income groups
principal source of household income
expenditure percentiles
expenditure classes in monetary terms
household size
structure of household
other characteristic of household, i.e ownership of durables, tenancy of housing unit
other classification, i.e employment status of head

The following classifications are used for tabulation and analysis of expenditure statistics:

age of reference person or head of household
sex of reference person or head of household
occupation of reference person or head of household
other characteristic of reference person or head of household, i.e. marital status, education, trainings
income percentiles, (quintiles)
absolute income groups
principal source of household income
expenditure percentiles
expenditure classes in monetary terms
household size
structure of household
other characteristic of household, i.e ownership of durables, tenancy of housing unit
other classification, i.e employment status of head

Documentation and Dissemination:
Published survey reports: Household income and expenditure survey, 12/95
Published methodological information: Household income and expenditure survey, 12/95

Additional statistics (or special tables on request) are available for public use, free of charge. Separate tables are published for households with wages/salaries as main source of income. Files of unidentifiable unit data are available (or available on request) for public use, free of charge.

(1) At that time the survey was conducted only for income. (2) Provided the head of household is present during survey month. (3) Components of income are also collected from one person who reports for all individuals. (4) To weights must yield close estimates of demographic variable to those from census.