Canada

Title: Survey of Household Spending 2002

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Statistics Canada of Ottawa, Ontario Canada, KIA 0T6, phone: 613-951-9482, fax: 613-951-0085, e-mail: sylvie.michaud@statcan.ca.
Data have been collected by household survey since 1947. 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 with the following geographic areas excluded: the territories in Canada are included every second year only. .

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:

• 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
• armed forces residing in private housing within military base

Units:
Dwelling units are used in the sample selection and are characterised by:²

• single structure - detached housing unit
• single unit in a structure containing more than one housing unit
• street address

²

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

Unit members: Usual residents temporarily living away from the dwelling are included, if away continuously for less than 6 months. Visitors (not usual residents) temporarily living in the dwelling are not included as unit members. Domestic staff living in same dwelling/compound are included in the unit. Renters living in same dwelling/compound are 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:

• responsible for financial maintenance of household/unit

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 01/02 to 12/02. These data are collected in the period from 01/03 to 03/03. This survey is conducted annually. The statistics are published annually.

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are, none and dwelling respectively.³

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

• geographical regions
• rural/urban
• economic regions and unemployment regions

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 simple random sampling. The sample size was 25000 households or other units. The overall response rate for the survey was 70.5 percent. Errors/biases were minimized by using an updated sampling frame.

Enumeration procedure: Enumeration uses a single round survey design in which each reporting unit is enumerated only once. The sample is not divided into representative sub-samples.

DATA COLLECTION, CONCEPTS, DEFINITIONS AND CLASSIFICATIONS

5. Income data

Income data are collected. Receipts have to be regular and recurring to be considered as income. ⁴ Income excludes receipts resulting from the sale or reduction of assets and/or from incurring liabilities. Income includes receipts that are not currently available to the unit.⁵

The following receipts are collected separately:

• employee social security contributions , excluded for other reasons: ; Not income.
• profit/loss from unincorporated enterprises (mixed income)
• retirement pensions from compulsory social security schemes
• unemployment benefits

The following receipts are collected but not separately:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• 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
• old age benefits
• other pensions
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• other social insurance benefits
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular inheritances or trusts , excluded for other reasons: ;Not income.
• regular inter-household transfers received from: regular cash gifts , excluded for other reasons: ; Not income.

The following receipts are not collected:

• employer social security contributions , excluded due to measurement problems
• employee income in-kind provided free or subsidized: housing , excluded for other reasons
• employee income in-kind provided free or subsidized: meals , excluded for other reasons
• employee income in-kind provided free or subsidized: car/transportation , excluded for other reasons
• employee income in-kind provided free or subsidized: goods or services produced by employer , excluded for other reasons
• drawing for own use from unincorporated enterprises , excluded for other reasons
• services produced for own consumption , excluded for other reasons
• goods produced for barter , excluded for other reasons
• services produced for barter , excluded for other reasons
• stock consumed from unincorporated enterprise , excluded for other reasons
• services from owner-occupied dwellings , excluded due to measurement problems
• services from other consumer durables (net) , excluded due to measurement problems
• free government dwelling , excluded for other reasons
• subsidized government dwelling , excluded for other reasons
• food subsidies , excluded for other reasons
• medical reimbursements , excluded due to measurement problems
• regular support received from non-profit institutions serving households: goods and services , excluded for other reasons
• regular support received from non-profit institutions serving households: free dwelling , excluded for other reasons
• regular support received from non-profit institutions serving households: subsidized dwelling , excluded for other reasons
• regular inter-household transfers received from: regular in-kind gifts , excluded for other reasons
• regular inter-household transfers received from: free dwelling , excluded for other reasons
• regular inter-household transfers received from: subsidized dwelling , excluded for other reasons
• regular inter-household transfers received from: regular free services , excluded for other reasons
• 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: transport subsidies , 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
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay

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:

• interest received
• dividends
• rentals (payment received for produced assets e.g. house)
• rents (payment received for un-produced assets e.g. land)

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

• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• survivors benefits
• other social insurance benefits
• other social assistance benefits

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

• termination and redundancy payments

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

• royalties
• education-related allowances
• housing allowances
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• regular inter-household transfers received from: family, e.g. alimony, child/parental support

The following receipts are excluded due to measurement problems:

• employer social security contributions
• services from owner-occupied dwellings
• services from other consumer durables (net)
• medical reimbursements
• 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
• social transfers in kind: others

The following receipts are excluded for other reasons:

• employee 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
• drawing for own use from unincorporated enterprises
• services produced for own consumption
• goods produced for barter
• services produced for barter
• stock consumed from unincorporated enterprise
• free government dwelling
• subsidized government dwelling
• food subsidies
• 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 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 reference period for:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• employee social security contributions
• profit/loss from unincorporated enterprises (mixed income)
• 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
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• other social insurance benefits
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• 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

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

6. Expenditure data

Data collection method:

Diaries are not used to collect expenditure data.

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 in last 12 months:
  • other household non-durable goods
  • clothing, footwear
  • other personal non-durable goods
  • housing
  • other durable goods
  • households services
  • personal services
  • other items: transportation, health, recreation

• to the usual payment for that expenditure:
  • food

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
• 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
• out of pocket education expenditures
• out of pocket transport expenditures
• housing maintenance, minor repairs
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• expenditure abroad
• valuables
• occupational expenditures

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)

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

• other business-related expenditures

The following types of expenditure items are classified as 'Investment/liability expenditure':

• purchase price of owner-occupied housing
• major repairs, conversions and extensions to owner-occupied housing
• investment-related expenditures (e.g. purchase of shares/stocks)

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

• services of owner-occupied housing
• social transfers in-kind of goods and services from government and non-profit institutions serving households

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

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

The following types of expenditure items are collected on an 'acquisitions' 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)
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure
• out of pocket health expenditure
• out of pocket education expenditures
• out of pocket transport expenditures
• housing maintenance, minor repairs
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• expenditure abroad
• valuables
• investment-related expenditures (e.g. purchase of shares/stocks)
• occupational expenditures

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

• life insurance premiums
• regular cash payments to others outside the household
• non-regular cash payments to others outside the household

Classification: A national classification that is not consistent with COICOP is used for classifying expenditure and has 258 separate categories at the finest level.

7. Other Data Collection Issues

The following other topics are covered:⁶

• demographic characteristics
• ownership of selected durable goods
• housing characteristics
• savings
• indebtedness

Households are requested to indicate whether durable goods are new or second-hand when their acquisition is recorded.⁷

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

Non-response is reduced using the following measures:⁸

• more than one repeat visits

Reporting errors are reduced using the following measures:

• careful instrument design
• adequate cues or props for prompting
• quality control
• balancing income and expenditures

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
• office staff
• most edits done by automated system

Extreme values are retained without change. Neither in-kind receipts nor consumption of own production is included in the estimates.

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 used to adjust estimates for under- or over-reporting. No groups are excluded from data analysis.

Weighting:
Weighting factors are used to adjust for:⁹

• sampling
• non-response
• 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 year and statistics are analysed and tabulated for households only.

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

• age of reference person or head of household
• occupation of reference person or head of household
• other characteristic of reference person or head of household
• income percentiles
• absolute income groups
• principal source of household income
• expenditure percentiles
• expenditure classes in monetary terms
• household size
• structure of household
• other characteristic of household
• other classification, various levels of geography

Documentation and Dissemination:
Published survey reports: Spending Patterns in Canada, 2002, June 2003
Published methodological information: User Guide and Methodology of the SHS, December 2003 and October 2003

Additional statistics (or special tables on request) are available for public use, free of charge (statistics Canada website) and with charges (custom table and CANSIM database). 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.