United States

Title: Consumer Expenditure Interview Survey

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Bureau of Labor Statistics of 2, Massachusettes Ave. NE Washington DC 20212, phone: 202 691 5123, fax: 202 691 7006, e-mail: groves s@bls.gov.
Data have been collected by household survey since 1980. 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 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
• nomadic and other households difficult to reach: if living in sample unit

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 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)
• street address

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

• 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

Unit members: ³ Usual residents temporarily living away from the dwelling are not included as unit members. 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:

• acknowledged as such by other household/unit members
• recognized owner, or responsible for tenancy of dwelling

3. Reference periods

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are enumeration area/district, address and consumer unit respectively.

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

• geographical regions
• rural/urban
• MSAs-Metropolitan Statistical Areas

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were MSA and the master sample of households respectively. Primary Sampling Units (PSU) were selected using probability proportional to size and Ultimate Sampling Units (USU) were selected using systematic sampling.. The sample size was 47998 interviews. The overall response rate for the survey was 78 percent. Errors/biases were minimized by using an updated sampling frame, and a sample of newly constructed housing units is selected each year.

Enumeration procedure: Enumeration uses a panel design in which each reporting unit is enumerated more than once. The sample is not divided into representative sub-samples. The panel has an expected lifetime of 1 years, and each reporting household/unit is enumerated 5 times in total. If a reporting household/unit drops out from the panel, it is abandonned. If changes occur in composition of the reporting household/unit during the lifetime of the panel, then it continues in the panel. No action is taken to select a smaller set of reporting units for more detailed questioning.

The first interview is a bounding interview with a reference period of one month. The next four interviews are collected at three month intervals. There fore, the life time of the panel is 13 months..

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:

• employee social security contributions
• employee income in-kind provided free or subsidized: housing
• employee income in-kind provided free or subsidized: meals
• drawing for own use from unincorporated enterprises
• services from owner-occupied dwellings , excluded for other reasons
• interest received
• retirement pensions from compulsory social security schemes
• unemployment benefits
• family-related allowances
• free government dwelling
• subsidized government dwelling⁷
• food subsidies
• medical reimbursements , excluded for other reasons
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• social transfers in kind: medical services

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
• dividends
• royalties
• regular pensions/annuities from schemes to which employee does not contribute
• other pensions
• invalidity benefits
• education-related 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: regular inheritances or trusts
• regular inter-household transfers received from: regular cash gifts

The following receipts are not collected:

• employer social security contributions
• 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)
• 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)
• old age benefits
• sickness benefits
• housing allowances
• 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 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
• 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 property income:

• goods produced for barter

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

• regular inter-household transfers received from: regular inheritances or trusts

The following receipts are excluded for other reasons:

• services from owner-occupied dwellings
• medical reimbursements

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

• services from owner-occupied dwellings

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

• employee income in-kind provided free or subsidized: housing
• employee income in-kind provided free or subsidized: meals
• free government dwelling
• subsidized government dwelling⁷

The following receipts are collected using the last 12 months 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
• drawing for own use from unincorporated enterprises
• interest received
• dividends
• royalties
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• other pensions
• unemployment benefits
• family-related allowances
• invalidity benefits
• education-related allowances
• survivors benefits
• food subsidies
• medical reimbursements
• 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

Income data were collected some at individual level, some at CU level. 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 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:⁶

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

• to the usual payment for that expenditure:
  • food

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

• non-durable goods purchased⁸
• durable goods purchased (except housing)⁹
• services of owner-occupied housing
• interest payments (excluding mortgage interest payments)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , gross of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , gross of winnings
• out of pocket education expenditures , net of refunds
• out of pocket transport expenditures , gross of refunds
• 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':

• mortgage repayments, including interest
• financial services (including fees for financial advice, brokerage fees)
• life insurance premiums , gross of claims
• 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

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

• 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
• 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:

• non-durable goods purchased⁸
• durable goods purchased (except housing)⁹
• financial services (including fees for financial advice, brokerage fees)
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , gross of winnings
• out of pocket education expenditures , net of refunds
• out of pocket transport expenditures , gross of refunds
• 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)

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)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , gross of claims
• life insurance premiums , gross of claims

Classification: A national classification that is not consistent with COICOP is used for classifying expenditure and has 600 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.

Reporting errors are reduced using the following measures:

• careful instrument design
• bounding interview
• adequate cues or props for prompting
• quality control
• encourage use of records and receipts

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
• office staff

Extreme values are amended. 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 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
• bench-marking

Sampling errors: Sampling errors are computed for all 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 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, education, race, Hispanic origin, marital status
• income percentiles, quintiles
• absolute income groups
• expenditure classes in monetary terms
• household size
• structure of household
• other characteristic of household, housing tenure
• other classification, urban/rural and region

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, education, race, Hispanic origin, marital status
• income percentiles, quintiles
• absolute income groups
• expenditure classes in monetary terms
• household size
• structure of household
• other characteristic of household, housing tenure
• other classification, urban/rural and region

Documentation and Dissemination:

Published methodological information: all of the above;also BLS Handbook of Methods,2003

Additional statistics (or special tables on request) are available for public use, free of charge (pre-publication expenditure and variance estimates). Separate tables are published for special studies published in monthly Labor Review. Files of unidentifiable unit data are available (or available on request) for public use, with charges.