Trinidad and Tobago

Title: Household Budget Survey 1997/98

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Central Statistical of 80 Independance Sq Port of Spain Trinidad W.I, phone: 1 868 423 4322, e-mail: naeostat@wow.net.
Data have been collected by household survey since 1957.

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
• for general poverty and/or income distribution studies

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
• to study effects on income and expenditure of policy changes, especially tax changes
• for market research purposes

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

Units: Dwelling units are not used in the sample selection.

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

Unit members: Usual residents temporarily living away from the dwelling are included, if away continuously for less than 2 weeks. Visitors (not usual residents) temporarily living in the dwelling are included, if staying continuously for more than 2 weeks. 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 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 05/97 to 05/98. These data are collected in the period from 05/97 to 05/98. 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, none and household respectively.

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

• geographical regions
• administrative districts

Households/Consumption Unit, Income Unit, Family Unit were stratified using the following criteria:

• skill level

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 systematic random sampling and Ultimate Sampling Units (USU) were selected using probability proportional to size. The sample size was 2717 households or other units. The overall response rate for the survey was 86.5 percent. Errors/biases were minimized by using substitution.

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. Income excludes receipts resulting from the sale or reduction of assets and/or from incurring liabilities. Income excludes receipts that are not currently available to the unit.

The following receipts are collected separately:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• employee social security contributions
• profit/loss from unincorporated enterprises (mixed income)
• goods produced for own consumption
• services from owner-occupied dwellings
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , net of expenses
• old age benefits
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular in-kind gifts

The following receipts are collected but not separately:

• royalties
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• other pensions
• family-related allowances
• sickness benefits
• invalidity benefits
• survivors benefits
• food subsidies
• 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: regular cash gifts

The following receipts are not collected:

• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• employer 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
• services produced for own consumption
• goods produced for barter
• services produced for barter
• stock consumed from unincorporated enterprise
• services from other consumer durables (net)
• rents (payment received for un-produced assets e.g. land)
• unemployment benefits
• education-related allowances
• housing allowances
• free government dwelling
• subsidized government dwelling
• medical reimbursements
• 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: 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: transport subsidies
• social transfers in kind: cultural and recreational services
• social transfers in kind: others

The following receipts are classified as income from paid employment:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• employee social security contributions

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

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

The following receipts are classified as property income:

• interest received
• dividends
• royalties

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

• old age benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• survivors benefits
• food subsidies
• 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 cash gifts
• regular inter-household transfers received from: regular in-kind gifts

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

• services from owner-occupied dwellings
• rentals (payment received for produced assets e.g. house) , net of expenses
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• other pensions

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

• services from owner-occupied dwellings
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , net of expenses
• royalties
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• family-related allowances
• sickness benefits
• invalidity benefits
• survivors benefits
• food subsidies
• 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 cash gifts
• regular inter-household transfers received from: regular in-kind gifts

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

• cash bonuses and gratuities
• commissions and tips
• profit/loss from unincorporated enterprises (mixed income)
• goods produced for own consumption

The following receipts are collected using the 'last payment' and 'period covered':

• wages and salaries
• employee social security contributions

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)

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:¹

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

• to expenditures in last 12 months:
  • other household non-durable goods
  • other personal non-durable goods
  • housing
  • other durable goods
  • households services
  • personal services
  • other items

Data for the following expenditure items are not collected by interview because they are collected by diary:

• food

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
• income in-kind receipts of goods
• own produced non-durable goods
• in-kind goods received from other households
• 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)
• 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':

• interest payments (excluding mortgage interest payments)
• gambling expenditure
• 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 'Investment/liability expenditure':

• purchase price of owner-occupied housing
• mortgage repayments, including interest
• major repairs, conversions and extensions to owner-occupied housing
• life insurance premiums
• investment-related expenditures (e.g. purchase of shares/stocks)

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

• 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
• social transfers in-kind of goods and services from government and non-profit institutions serving households
• out of pocket health expenditure
• out of pocket education expenditures
• other business-related expenditures

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

• purchase price of owner-occupied housing
• in-kind goods received from other households

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

• services of owner-occupied housing
• income in-kind receipts of goods
• own produced non-durable goods

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

• non-durable goods purchased
• durable goods purchased (except 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)
• life insurance premiums
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure
• 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
• 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)
• occupational expenditures

Classification: A national classification that is not consistent with COICOP is used for classifying expenditure and has 116 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

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

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

DATA PROCESSING, ANALYSIS AND DISSEMINATION

Answers are not pre-coded on data collection forms, but are coded by office staff.

The responses are edited by the following:

• interviewers, data collectors
• field supervisors
• office staff

Extreme values are deleted. ² Consumption of own production is included in the estimates, but in-kind receipts are not. In-kind receipts are not valued. Consumption of own production is valued using:³ 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: Some households/units are excluded from analysis because of incomplete response. Missing values are by imputation where possible. Supplementary sources are used to adjust estimates for under- or over-reporting. No groups are excluded from data analysis.

Weighting:
No weighting factors are used for sampling, non-response or benchmarking.

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, employment status, industry, type of worker ethnicgroup
• 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, gender of head
• other classification, urban/rural, administrative areas, income of household, per capita

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, employment status, industry, type of worker ethnicgroup
• 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, gender of head
• other classification, urban/rural, administrative areas, income of household, per capita

Documentation and Dissemination:
Published survey reports: Household Budget Survey 97/98 Vol.2, Oct 2002
Published methodological information: Household Budget Survey 97/98 Vol.1, to be publish

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

Separate tables are published for the following special population groups:

Files of unidentifiable unit data are available (or available on request) for public use, with charges.

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(1) Expenditure on all items except food were also collected using a one month recall period. (2) Extreme values were also amended if appropriate. (3) Consumption own produce is also imputed by field staff using market prices.