Costa Rica

Title: Encuesta Nacional de Igresos y Gastos de los Hogares (Noviembre 1987 - Noviembre 1988)

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Instituto Nacional de Estadistica y Censos, phone: 280 92 80, fax: 224 22 21, e-mail: informacion@inec.go.cr.
Data have been collected by household survey since 1949.

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

Lesser importance is attached to:

• for market research purposes

Geographic coverage: National with the following geographic areas excluded: remote or inaccessible areas .

Population coverage:¹
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

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
• armed forces residing in private housing outside 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
• 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
• single person also

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
• single person also

Unit members: ² Usual residents temporarily living away from the dwelling are included, if away continuously for less than 6 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 not included in the unit.

Head of unit:
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 11/87 to 11/88. 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, dwelling and household respectively.

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

• geographical regions
• rural/urban

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 none and register of buildings and housing respectively. Primary Sampling Units (PSU) were selected using probability proportional to size and Ultimate Sampling Units (USU) were selected using the Costa Rican system of 3 household conglomerations is used. The sample size was 4884 households or other units. The overall response rate for the survey was 84 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 divided into 4 representative sub-samples. No action is taken to select a smaller set of reporting units for more detailed questioning.

The field work is undertaken in accordance with the planned schedule. The pilot survey was conducted from 28 April to 30 May 1987, and from 28 April to 6 May, 12 to 20 May and 22 to 30 May. The workload was set at 18 households per interviewer, 6 f or each period, for a planned total of 234 households, requiring 13 interviewers and 4 supervisors for the pilot. In addition to the questionnaires, the interviewers dealt with the following documentation:list of goods and services for household consump tion, list offood and non-food products (with the respective weight and size) ; table of decimal equivalents; letter addressed to the head of household..

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. Income excludes receipts resulting from the sale or reduction of assets and/or from incurring liabilities. Exceptions are net household capital accumulation. Income includes receipts that are not currently available to the unit.

The following receipts are collected separately:⁵

• 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
• 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
• employee income in-kind provided free or subsidized: other goods or services
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption
• stock consumed from unincorporated enterprise
• 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
• survivors benefits

The following receipts are collected but not separately:⁵

• services from owner-occupied dwellings
• subsidized government dwelling

The following receipts are classified as income from paid employment:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• 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
• employee income in-kind provided free or subsidized: other goods or services
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• 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: free dwelling

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

• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption

The following receipts are classified as property income:

• services from owner-occupied dwellings
• interest received
• dividends
• rentals (payment received for produced assets e.g. house)
• rents (payment received for un-produced assets e.g. land)
• royalties

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

• remuneration for time not worked, e.g. leave pay
• stock consumed from unincorporated enterprise
• family-related allowances
• survivors 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:

• regular pensions/annuities from schemes to which employee does not contribute

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

• remuneration for time not worked, e.g. leave pay
• services from owner-occupied dwellings
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• family-related allowances
• survivors benefits

The following receipts are collected using the last 6 months as the reference period:

• termination and redundancy payments
• old age benefits
• other pensions
• unemployment benefits

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

• drawing for own use from unincorporated enterprises
• goods produced for own consumption
• stock consumed from unincorporated enterprise
• interest received
• dividends
• rentals (payment received for produced assets e.g. house)
• rents (payment received for un-produced assets e.g. land)
• royalties

The reference period for:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• 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
• employee income in-kind provided free or subsidized: other goods or services
• profit/loss from unincorporated enterprises (mixed income)
• subsidized government dwelling

Income data were collected separately for each person receiving income. Components of income for an individual were collected from one person who reported for all individuals. 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 week.

Diaries are used to collect expenditure on the following items:

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

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

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

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

• to expenditures in last one month:
  • other household non-durable goods
  • housing
  • households services
  • personal services
  • other items

• to expenditures in last 3 months:
  • clothing, footwear
  • other personal non-durable goods

• to expenditures in last 6 months:
  • other durable goods

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

• out of pocket health expenditure
• out of pocket education expenditures
• regular cash payments to others outside the household

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

• out of pocket transport expenditures

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

• 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)
• occupational expenditures

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

• valuables

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

• housing maintenance, minor repairs

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

• out of pocket health expenditure
• out of pocket education expenditures

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

• out of pocket transport expenditures

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

• housing maintenance, minor repairs
• regular cash payments to others outside the household
• non-regular cash payments to others outside the household
• 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)
• occupational expenditures

Classification: A national classification is used for classifying expenditure and has 6 separate categories at the finest level. ³ The classification is consistent with COICOP at the Class (4 digit) level. ⁴

7. Other Data Collection Issues

The following other topics are covered:

• demographic characteristics
• education attainment of members
• employment status of members
• occupation of members
• housing characteristics
• savings
• indebtedness

Non-response: Non-response households (refusals and non-contacts) are substituted.

Reporting errors are reduced using the following measures:

• careful instrument design
• requesting receipts for services as a guide, cash slips

DATA PROCESSING, ANALYSIS AND DISSEMINATION

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

Extreme values are retained without change. 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: No households/units are excluded from analysis because of incomplete response. Missing values are imputed only on some occasions . 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
• non-response

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 and for individuals separately.

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
• income percentiles
• absolute income groups
• principal source of household income
• expenditure percentiles
• expenditure classes in monetary terms
• household size
• other classification, region, urban and rural area

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

• age of reference person or head of household
• income percentiles
• expenditure percentiles
• structure of household
• other classification, region, urban and rural area

Documentation and Dissemination:
Published survey reports: avance de resultados, 1990
Published methodological information: metodología: encuesta nacional de ingresos y gasto de los hogares, 1991

Additional statistics (or special tables on request) are available for public use, free of charge. Separate tables are published for special tables are prepared when users so request. Files of unidentifiable unit data are not available (or available on request) for public use.