Ecuador

Title: Encuesta Nacional de Ingresos y Gastos de los HogaHogares Urbanos (Enighu 2003)

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Instituto Nacional de Estadísticas y Censos of Juan Larrea #1536 y Rio Frío, phone: 223 1600, fax: 223 1600, e-mail: jcalderon@quito.inec.gov.ec.
Data have been collected by household survey since 1991.

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
• for consultation

Geographic coverage: Urban areas only with the following geographic areas excluded: rural area and Amazon and Island Region .

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

• one person private households
• private households with more than one person
• diplomatic households in the country
• 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)

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

• single structure - detached housing unit

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: ¹

Data are recorded for the consumer unit, expenditure unit or spending unit which is characterised by: ²

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 included, if staying continuously for more than 6 months. Domestic staff living in same dwelling/compound are included in the unit. Boarders living in same dwelling/compound are not included in the unit.

Head of unit: ³
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 02/03 to 01/04. These data are collected in the period from 02/03 to 01/04. This survey is conducted irregularly/occasionally. The statistics are published irregularly/occasionally.

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are enumeration area/district, block and dwelling respectively.

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

• geographical regions
• administrative districts

Other units were stratified using the following criteria: expenditure by census block (sector). The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were the master sample of blocks and master housing sample respectively. Primary Sampling Units (PSU) were selected using probability proportional to size and Ultimate Sampling Units (USU) were selected using systematic random sampling. The sample size was 11256 households or other units. Errors/biases were minimized by using an updated sampling frame, an increased sample size.

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. 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 have to be regular and recurring to be considered as income. ⁴ 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
• commissions and tips
• employee social security contributions
• employee income in-kind provided free or subsidized: housing⁹
• employee income in-kind provided free or subsidized: meals⁹
• employee income in-kind provided free or subsidized: car/transportation⁹
• employee income in-kind provided free or subsidized: goods or services produced by employer⁹
• employee income in-kind provided free or subsidized: other goods or services ⁹
• profit/loss from unincorporated enterprises (mixed income)⁹
• drawing for own use from unincorporated enterprises^9,10
• goods produced for own consumption^9,10
• services produced for own consumption^9,10
• services from owner-occupied dwellings
• interest received
• rentals (payment received for produced assets e.g. house)
• family-related allowances
• education-related allowances
• housing allowances
• free government dwelling
• regular support received from non-profit institutions serving households: cash, e.g. scholarships^9,11
• regular support received from non-profit institutions serving households: goods and services^9,11
• regular support received from non-profit institutions serving households: free dwelling^9,11
• regular inter-household transfers received from: family, e.g. alimony, child/parental support^9,10
• regular inter-household transfers received from: regular cash gifts^9,10
• regular inter-household transfers received from: free dwelling^9,10

The following receipts are collected but not separately:

• cash bonuses and gratuities
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• services from other consumer durables (net)
• dividends
• rents (payment received for un-produced assets e.g. land)
• royalties
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• sickness benefits
• invalidity benefits
• survivors benefits
• other social insurance benefits
• other social assistance benefits
• regular inter-household transfers received from: regular inheritances or trusts^9,10

The following receipts are not collected:

• employer social security contributions , excluded due to measurement problems
• goods produced for barter , excluded due to measurement problems
• services produced for barter , excluded due to measurement problems
• stock consumed from unincorporated enterprise , excluded due to measurement problems
• regular pensions/annuities from schemes to which employee does not contribute , excluded due to measurement problems
• unemployment benefits , excluded due to measurement problems
• subsidized government dwelling , excluded due to measurement problems
• food subsidies , excluded due to measurement problems
• medical reimbursements , excluded due to measurement problems
• regular support received from non-profit institutions serving households: subsidized dwelling^9,11, excluded due to measurement problems
• regular inter-household transfers received from: regular in-kind gifts^9,10
• regular inter-household transfers received from: subsidized dwelling^9,10, excluded due to measurement problems
• regular inter-household transfers received from: regular free services^9,10, 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: 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
• commissions and tips
• employee social security contributions
• employee income in-kind provided free or subsidized: housing⁹
• employee income in-kind provided free or subsidized: meals⁹
• employee income in-kind provided free or subsidized: car/transportation⁹
• employee income in-kind provided free or subsidized: goods or services produced by employer⁹
• employee income in-kind provided free or subsidized: other goods or services ⁹
• family-related allowances
• education-related allowances

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

• profit/loss from unincorporated enterprises (mixed income)⁹
• drawing for own use from unincorporated enterprises^9,10
• goods produced for own consumption^9,10
• services produced for own consumption^9,10

The following receipts are classified as property income:

• services from owner-occupied dwellings
• services from other consumer durables (net)
• interest received
• dividends
• rentals (payment received for produced assets e.g. house)
• rents (payment received for un-produced assets e.g. land)
• royalties
• regular inter-household transfers received from: free dwelling^9,10

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

• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• survivors benefits

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

• housing allowances
• regular support received from non-profit institutions serving households: cash, e.g. scholarships^9,11
• regular support received from non-profit institutions serving households: goods and services^9,11
• regular support received from non-profit institutions serving households: free dwelling^9,11
• regular inter-household transfers received from: family, e.g. alimony, child/parental support^9,10
• regular inter-household transfers received from: regular cash gifts^9,10
• regular inter-household transfers received from: regular in-kind gifts^9,10

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

• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments

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

• cash bonuses and gratuities
• sickness benefits
• invalidity benefits
• free government dwelling
• other social insurance benefits
• other social assistance benefits
• regular inter-household transfers received from: regular inheritances or trusts^9,10

The following receipts are excluded due to measurement problems:

• employer social security contributions
• goods produced for barter
• services produced for barter
• stock consumed from unincorporated enterprise
• regular pensions/annuities from schemes to which employee does not contribute
• unemployment benefits
• subsidized government dwelling
• food subsidies
• medical reimbursements
• regular support received from non-profit institutions serving households: subsidized dwelling^9,11
• regular inter-household transfers received from: subsidized dwelling^9,10
• regular inter-household transfers received from: regular free services^9,10
• 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 collected using the last week as the reference period:

• drawing for own use from unincorporated enterprises^9,10
• goods produced for own consumption^9,10
• services produced for own consumption^9,10
• regular support received from non-profit institutions serving households: goods and services^9,11
• regular inter-household transfers received from: regular in-kind gifts^9,10

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

• wages and salaries
• commissions and tips
• employee social security contributions
• employee income in-kind provided free or subsidized: housing⁹
• employee income in-kind provided free or subsidized: meals⁹
• employee income in-kind provided free or subsidized: car/transportation⁹
• employee income in-kind provided free or subsidized: goods or services produced by employer⁹
• employee income in-kind provided free or subsidized: other goods or services ⁹
• profit/loss from unincorporated enterprises (mixed income)⁹
• services from owner-occupied dwellings
• family-related allowances
• education-related allowances
• free government dwelling
• regular support received from non-profit institutions serving households: free dwelling^9,11
• regular inter-household transfers received from: free dwelling^9,10

The following receipts are collected using the last 3 months as the reference period:

• services from other consumer durables (net)
• interest received
• dividends
• rentals (payment received for produced assets e.g. house)
• rents (payment received for un-produced assets e.g. land)
• royalties
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• survivors benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships^9,11
• regular inter-household transfers received from: family, e.g. alimony, child/parental support^9,10
• regular inter-household transfers received from: regular cash gifts^9,10

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

• cash bonuses and gratuities
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• sickness benefits
• invalidity benefits
• housing allowances
• other social insurance benefits
• other social assistance benefits
• regular inter-household transfers received from: regular inheritances or trusts^9,10

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

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:^5,6

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

• to expenditures in last one month:
  • housing
  • households services
  • personal services

• to expenditures in last 12 months:
  • clothing, footwear
  • other durable goods

The following types of expenditure items are classified as 'Household consumption expenditure':¹²

• non-durable goods purchased
• durable goods purchased (except housing)
• services of owner-occupied housing
• major repairs, conversions and extensions to 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
• services from durables owned (except housing)
• in-kind goods received from other households
• in-kind services received from other households
• financial services (including fees for financial advice, brokerage fees)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical)
• life insurance premiums
• gambling expenditure
• out of pocket education expenditures
• out of pocket transport expenditures
• housing maintenance, minor repairs
• regular cash payments to others outside the household
• non-regular cash payments to others outside the household
• second hand goods purchased
• expenditure abroad
• valuables : jewellery
• occupational expenditures

The following types of expenditure items are classified as 'Actual Household consumption':¹²

• 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':¹²

• interest payments (excluding mortgage interest payments)
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• 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':¹²

• 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 'Investment/liability expenditure':¹²

• purchase price of owner-occupied housing
• mortgage repayments, including interest
• investment-related expenditures (e.g. purchase of shares/stocks)
• other business-related expenditures

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

• services of owner-occupied housing

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

• purchase price of owner-occupied housing
• mortgage repayments, including interest
• interest payments (excluding mortgage interest payments)
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• 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
• 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 a mixed basis:

• non-durable goods purchased
• durable goods purchased (except housing)
• major repairs, conversions and extensions to 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
• services from durables owned (except housing)
• 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
• financial services (including fees for financial advice, brokerage fees)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical)
• life insurance premiums
• gambling expenditure
• out of pocket education expenditures
• out of pocket transport expenditures
• housing maintenance, minor repairs
• second hand goods purchased
• expenditure abroad
• valuables : jewellery
• occupational expenditures
• other business-related expenditures

Classification: A national classification is used for classifying expenditure and has 12 separate categories at the finest level.⁷ 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 requested to indicate whether durable goods are new or second-hand when their acquisition is recorded.⁸

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

Reporting errors are reduced using the following measures:

• careful instrument design
• bounding interview
• adequate cues or props for prompting

DATA PROCESSING, ANALYSIS AND DISSEMINATION

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

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 current market value. ( )

Treatment of selected groups/values in analysis: No households/units are excluded from analysis because of incomplete response.¹³ Missing values are imputed only on some occasions . Supplementary sources are not used to adjust estimates for under- or over-reporting. these remain to be analysed are excluded from data analysis.

Weighting:
Weighting factors are used to adjust for:

• sampling
• non-response
• bench-marking , other studies: population and housing census, employment and unemployment survey, etc...

Sampling errors: Sampling errors are computed for Total Income/Expenditure aggregates only 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
• income percentiles
• principal source of household income
• expenditure percentiles
• expenditure classes in monetary terms
• household size
• other classification, age-groups, conditions of activity, etc...

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, level of education
• income percentiles
• principal source of household income
• expenditure percentiles
• expenditure classes in monetary terms
• household size
• other classification, age-groups, conditions of activity, etc...

Documentation and Dissemination:

Additional statistics (or special tables on request) are available for public use, with charges (basic).

Separate tables are published for the following special population groups:

• households with wages/salaries as main source of income
• low income households