Panama

Title: Encuesta de Ingresos y Gastos de los Hogares, año 97/98

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Dirección de Estadística y Censo of Avenida Balboa y Federico Boyd, phone: 507-210-4800, fax: 507-210-4801.
Data have been collected by household survey since 1952.

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

Lesser importance is attached to:

• 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: Main cities only with the following geographic areas excluded: rural areas .

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:

• single structure - detached housing unit

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

• two or more people living together:
  • 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 6 months. Visitors (not usual residents) temporarily living in the dwelling are included, if staying continuously for more than 6 months. 7. 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
• responsible for financial maintenance of household/unit
• responsible for decisions on main expenditures

3. Reference periods

SURVEY METHODOLOGY

4. Sample design

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

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

• geographical regions

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were the list of Census enumeration areas and respectively. The sample size was 9624 households or other units. The overall response rate for the survey was 95 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. 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:

• employee social security contributions
• drawing for own use from unincorporated enterprises
• services from owner-occupied dwellings
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , net 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
• unemployment benefits
• survivors benefits
• regular inter-household transfers received from: family, e.g. alimony, child/parental support

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
• 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)
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• food subsidies
• 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 inheritances or trusts
• regular inter-household transfers received from: regular cash gifts
• regular inter-household transfers received from: regular in-kind gifts

The following receipts are not collected:

• employer social security contributions
• goods produced for own consumption
• services produced for own consumption
• goods produced for barter
• services produced for barter
• stock consumed from unincorporated enterprise
• services from other consumer durables (net)
• housing allowances
• free government dwelling
• subsidized government dwelling
• medical reimbursements
• other social insurance benefits
• other social assistance benefits
• social transfers in kind: medical services

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
• 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
• employee income in-kind provided free or subsidized: other goods or services

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

• employee social security contributions
• profit/loss from unincorporated enterprises (mixed income)

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) , net 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
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• survivors benefits
• food subsidies
• 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

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

• drawing for own use from unincorporated enterprises
• regular inter-household transfers received from: regular inheritances or trusts

The following receipts are collected using the last month 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
• 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
• drawing for own use from unincorporated enterprises
• 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
• survivors benefits
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular cash gifts
• regular inter-household transfers received from: regular in-kind gifts

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

• 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 collected using the last 12 months as the reference period:

• profit/loss from unincorporated enterprises (mixed income)
• services from owner-occupied dwellings
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , net of expenses
• rents (payment received for un-produced assets e.g. land)
• royalties
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• food subsidies
• regular inter-household transfers received from: regular inheritances or trusts

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)
• public transport, petrol, formal meals, household telephone calls

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

• food
• alcohol, tobacco
• other household non-durables (such as newspapers, batteries)
• public transport, petrol, formal meals, household telephone calls

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:¹

• to expenditures last week:
  • food

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

• to expenditures in last 3 months:
  • clothing, footwear
  • personal services

• to expenditures in last 12 months:
  • other durable goods

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

• non-durable goods purchased
• durable goods purchased (except housing)
• services of owner-occupied housing
• 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

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

• interest payments (excluding mortgage interest payments)
• life insurance premiums

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

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
• gambling expenditure
• out of pocket health expenditure

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

• services of owner-occupied housing
• 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)
• life insurance premiums
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)

Classification: COICOP is used for classifying expenditure and has an unspecified number of separate categories at the finest 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: There is no substitution for non-response, whether by non-contact or by refusal.

DATA PROCESSING, ANALYSIS AND DISSEMINATION

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

Extreme values are deleted. 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 imputed in office processing using market prices.

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. (respondent provides an estimate )

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 . 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 not computed.

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
• income percentiles
• absolute income groups
• principal source of household income
• expenditure percentiles
• household size
• structure of household

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

• expenditure classes in monetary terms
• structure of household

Documentation and Dissemination:

Additional statistics (or special tables on request) are not available for public use. 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.