Brazil

Title: Pesquisa de Orçamentos Familiares 2002/2003

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Instituto Brasileiro de Geografia e EstatÍsitica of Avenida RepÚblica do Chile 500- sexto andar, phone: 55-21-2142-4526 55-21 2142 4520, fax: 55-21-2142-0029, e-mail: marciaq@ibge.gov.br e esilva@ibge.gov.br.
Data have been collected by household survey since 1987.

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
• food habits; nutrition; anthropometric measures

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 outside military base

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

• diplomatic households in the country
• armed forces residing in private housing within military base

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
• street address

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
• stocks or expenditure on food are used

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

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

• two or more people:
  • living in the same household
  • sharing a single dwelling or compound
  • sharing meals
  • 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 12 months. 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 included in the unit.

Head of unit:
The concept of reference person is used in this survey and is characterised by:

• acknowledged as such by other household/unit members
• recognized owner, or responsible for tenancy of dwelling
• responsible for financial maintenance of household/unit
• main income earner
• oldest person
• age is used as a criterion only when more than oneperson meets the other conditions.

3. Reference periods

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are enumeration area/district, none and dwelling respectively.¹

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

• geographical regions
• rural/urban

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. The sample size was 61000 households or other units. The overall response rate for the survey was 80 percent. 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 includes receipts that are not currently available to the unit.

The following receipts are collected separately:

• wages and salaries
• cash bonuses and gratuities
• termination and redundancy payments
• employee social security contributions , excluded for other reasons: concept
• employee income in-kind provided free or subsidized: meals
• employee income in-kind provided free or subsidized: car/transportation
• goods produced for own consumption³
• goods produced for barter³
• interest received
• dividends
• rentals (payment received for produced assets e.g. house)
• retirement pensions from compulsory social security schemes
• unemployment benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships , excluded due to measurement problems
• 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
• social transfers in kind: transport subsidies

The following receipts are collected but not separately:

• commissions and tips
• remuneration for time not worked, e.g. leave pay
• employee income in-kind provided free or subsidized: housing , excluded due to measurement problems
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• services from owner-occupied dwellings , excluded for other reasons
• services from other consumer durables (net) , excluded for other reasons
• rents (payment received for un-produced assets e.g. land)
• royalties
• regular pensions/annuities from schemes to which employee does not contribute
• other pensions
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• subsidized government dwelling , excluded for other reasons
• food subsidies
• medical reimbursements
• other social insurance benefits , excluded due to measurement problems
• other social assistance benefits , excluded due to measurement problems
• regular support received from non-profit institutions serving households: goods and services , excluded due to measurement problems
• regular support received from non-profit institutions serving households: free dwelling , excluded due to measurement problems
• regular support received from non-profit institutions serving households: subsidized dwelling , excluded due to measurement problems

The following receipts are not collected:

• employer social security contributions , excluded for other reasons: conceito
• employee income in-kind provided free or subsidized: goods or services produced by employer , excluded due to measurement problems
• employee income in-kind provided free or subsidized: other goods or services , excluded due to measurement problems
• services produced for own consumption , excluded due to measurement problems
• services produced for barter , excluded due to measurement problems
• stock consumed from unincorporated enterprise , excluded due to measurement problems
• old age benefits , excluded due to measurement problems
• free government dwelling , excluded for other reasons
• regular inter-household transfers received from: regular in-kind gifts , excluded due to measurement problems
• regular inter-household transfers received from: free dwelling , excluded due to measurement problems
• regular inter-household transfers received from: subsidized dwelling , excluded due to measurement problems
• regular inter-household transfers received from: regular free services , excluded due to measurement problems
• social transfers in kind: medical services , excluded due to measurement problems
• social transfers in kind: public education , excluded due to measurement problems
• social transfers in kind: cultural and recreational services , excluded due to measurement problems
• social transfers in kind: others , excluded due to measurement problems

The following receipts are classified as income from paid employment:

• wages and salaries
• commissions and tips

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

• retirement pensions from compulsory social security schemes
• other pensions
• unemployment benefits

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

• cash bonuses and gratuities
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• employee income in-kind provided free or subsidized: meals
• employee income in-kind provided free or subsidized: car/transportation
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption³
• goods produced for barter³
• interest received
• dividends
• rentals (payment received for produced assets e.g. house)
• rents (payment received for un-produced assets e.g. land)
• royalties
• regular pensions/annuities from schemes to which employee does not contribute
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• food subsidies
• medical reimbursements
• 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
• social transfers in kind: transport subsidies

The following receipts are excluded due to measurement problems:

• employee income in-kind provided free or subsidized: housing
• employee income in-kind provided free or subsidized: goods or services produced by employer
• employee income in-kind provided free or subsidized: other goods or services
• services produced for own consumption
• services produced for barter
• stock consumed from unincorporated enterprise
• old age benefits
• other social insurance benefits
• other social assistance benefits
• 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: 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
• social transfers in kind: medical services
• social transfers in kind: public education
• social transfers in kind: cultural and recreational services
• social transfers in kind: others

The following receipts are excluded for other reasons:

• employer social security contributions
• employee social security contributions
• services from owner-occupied dwellings
• services from other consumer durables (net)
• free government dwelling
• subsidized government dwelling

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

• goods produced for own consumption³
• goods produced for barter³

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

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• employer social security contributions
• employee social security contributions
• employee income in-kind provided free or subsidized: housing
• drawing for own use from unincorporated enterprises
• interest received
• dividends
• rentals (payment received for produced assets e.g. house)
• 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
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• food subsidies
• medical reimbursements
• 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
• social transfers in kind: transport subsidies

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

6. Expenditure data

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

Diaries are used to collect expenditure on the following items:

• food
• alcohol, tobacco
• other household non-durables (such as newspapers, batteries)
• food outside the household

Diaries are not used to collect expenditure on the following items:

• food
• alcohol, tobacco
• other household non-durables (such as newspapers, batteries)
• food outside the household

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:²

• to expenditures last week:
  • food
  • other household non-durable goods
  • other personal non-durable goods

• to expenditures in last one month:
  • other items : medicines, education

• to expenditures in last 3 months:
  • clothing, footwear
  • 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':⁴

• non-durable goods purchased
• durable goods purchased (except housing)
• financial services (including fees for financial advice, brokerage fees)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , gross of claims
• life insurance premiums , gross of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , gross of winnings
• out of pocket education expenditures , gross of refunds
• out of pocket transport expenditures , gross of refunds
• housing maintenance, minor repairs
• regular cash payments to others outside the household⁴
• non-regular cash payments to others outside the household⁴
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• expenditure abroad
• valuables

The following types of expenditure items are classified as 'Actual Household consumption':⁴

• income in-kind receipts of goods
• own produced non-durable goods
• in-kind goods 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 classified as 'Non-consumption household expenditure':⁴

• mortgage repayments, including interest
• services of owner-occupied housing
• major repairs, conversions and extensions to owner-occupied housing
• interest payments (excluding mortgage interest payments)
• 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 'Investment/liability expenditure':⁴

• purchase price of owner-occupied housing

The following types of expenditure items are excluded due to measurement problems:⁴

• income in-kind receipts of services
• own-produced durable goods
• own-produced services
• services from durables owned (except housing)
• in-kind services received from other households

The following types of expenditure items are excluded for other reasons:⁴

• occupational expenditures
• other business-related expenditures

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

• non-durable goods purchased
• durable goods purchased (except housing)
• purchase price of owner-occupied housing
• mortgage repayments, including interest
• major repairs, conversions and extensions to owner-occupied 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) , gross of claims
• life insurance premiums , gross of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , gross of winnings
• out of pocket education expenditures , gross of refunds
• out of pocket transport expenditures , gross of refunds
• housing maintenance, minor repairs
• regular cash payments to others outside the household⁴
• non-regular cash payments to others outside the household⁴
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• expenditure abroad
• valuables
• 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 collected on some other basis:

• services of owner-occupied housing
• income in-kind receipts of goods
• own produced non-durable goods
• in-kind goods received from other households
• social transfers in-kind of goods and services from government and non-profit institutions serving households

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 Class (4 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
• indebtedness

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

Non-response: Non-contacted households are substituted, but not refusal households.

Non-response is reduced using the following measures:

• more than one repeat visits
• other incentives : gifts, press, publicity, field surveys

Reporting errors are reduced using the following measures:

• adequate cues or props for prompting
• quality control
• supervision in the field

DATA PROCESSING, ANALYSIS AND DISSEMINATION

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

The responses are edited by the following:

• interviewers, data collectors
• field supervisors
• edited immediately by electronic means (lap-top)

Extreme values are retained without change. ⁵ 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 not included in the total income/expenditure estimates.

Treatment of selected groups/values in analysis: Some households/units are excluded from analysis because of incomplete response. Missing values are imputed always . Supplementary sources are not used to adjust estimates for under- or over-reporting. No groups are excluded from data analysis.

Weighting:
Weighting factors are used to adjust for:

• sampling
• bench-marking

Sampling errors: Sampling errors are computed for major aggregates and these sampling errors are published.

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, level of education
• absolute income groups
• principal source of household income

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

• sex of reference person or head of household
• absolute income groups
• principal source of household income

Documentation and Dissemination:

Published methodological information: "Manual de Coleta" y "Informação Metodológica", Disponíveis na web page-www.ibge.gov.br, 2001

Additional statistics (or special tables on request) are available for public use, free of charge and with charges (archive with micro data and special tables). 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, with charges.