Cyprus

Title: Family Budget Survey 2003

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Statistical Service of Cyprus, phone: 357 22 602141, fax: 357 22 661313, e-mail: cydsr@cytanet.com.cy.
Data have been collected by household survey since 1980.

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: area occuppied by Turkish Forces .

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

• one person private households
• 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 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 meals
  • 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 12 months. 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 not included in the unit. Boarders living in same dwelling/compound are not 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

3. Reference periods

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are none, none 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:

• social class of the head

Other units were stratified using the following criteria: size of household. The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were none and list of households from census of population respectively. The sample size was 3300 households or other units. The overall response rate for the survey was 94 percent. 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. 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:

• wages and salaries
• termination and redundancy payments
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption , net of inputs
• stock consumed from unincorporated enterprise
• services from owner-occupied dwellings
• interest received
• dividends
• unemployment benefits
• family-related allowances
• sickness benefits
• education-related allowances
• free government dwelling
• 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
• regular inter-household transfers received from: regular in-kind gifts , excluded due to measurement problems
• regular inter-household transfers received from: free dwelling
• regular inter-household transfers received from: subsidized dwelling

The following receipts are collected but not separately:

• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• 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 (vacations)
• 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
• invalidity benefits
• housing 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 support received from non-profit institutions serving households: goods and services
• 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
• services produced for own consumption
• goods produced for barter
• services produced for barter
• services from other consumer durables (net)
• medical reimbursements
• regular inter-household transfers received from: regular free services
• social transfers in kind: medical services
• 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
• remuneration for time not worked, e.g. leave pay
• 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 (vacations)

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

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

The following receipts are classified as property income:

• services from owner-occupied dwellings
• rentals (payment received for produced assets e.g. house) , net of expenses
• rents (payment received for un-produced assets e.g. land)
• free government dwelling
• 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: free dwelling
• regular inter-household transfers received from: subsidized dwelling

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

• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular inheritances or trusts
• regular inter-household transfers received from: regular cash gifts

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

• termination and redundancy payments
• goods produced for own consumption , net of inputs
• stock consumed from unincorporated enterprise
• interest received
• dividends
• 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
• sickness benefits
• invalidity benefits
• education-related allowances
• housing 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 support received from non-profit institutions serving households: goods and services

The following receipts are excluded due to measurement problems:

• regular inter-household transfers received from: regular in-kind gifts

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

• wages and salaries
• remuneration for time not worked, e.g. leave pay
• 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 (vacations)

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

• services from owner-occupied dwellings
• free government dwelling

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

• cash bonuses and gratuities
• commissions and tips
• termination and redundancy payments
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• stock consumed from unincorporated enterprise
• 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
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing 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 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
• 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
• regular inter-household transfers received from: free dwelling
• regular inter-household transfers received from: subsidized dwelling

The reference period for:

• goods produced for own consumption , net of input was two weeks diary

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 two weeks.

Diaries are 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 one month:
  • other durable goods
  • personal services

• 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
  • households services

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
• own produced non-durable goods
• own-produced durable goods
• financial services (including fees for financial advice, brokerage fees)
• 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
• out of pocket health expenditure , net of claims
• out of pocket education expenditures , net of refunds
• out of pocket transport expenditures , net of refunds
• housing maintenance, minor repairs
• second hand goods purchased
• valuables

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

• regular cash payments to others outside the household

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

• life insurance premiums , gross of claims
• non-regular cash payments to others outside the household
• purchase of gifts of goods and services given to others outside the household
• expenditure abroad
• compulsory transfers to governments (e.g. contributions to government old age and disability insurance program, taxes)
• occupational expenditures
• other business-related expenditures

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
• interest payments (excluding mortgage interest payments)
• investment-related expenditures (e.g. purchase of shares/stocks)

The following types of expenditure items are excluded due to measurement problems:

• income in-kind receipts of goods
• income in-kind receipts of services
• 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

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

• non-durable goods purchased
• durable goods purchased (except housing)
• services of owner-occupied housing
• own produced non-durable goods
• own-produced durable goods
• financial services (including fees for financial advice, brokerage fees)
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure
• out of pocket health expenditure , net of claims
• out of pocket education expenditures , net of refunds
• out of pocket transport expenditures , net of refunds
• housing maintenance, minor repairs
• second hand goods purchased
• valuables

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

• purchase price of owner-occupied housing
• mortgage repayments, including interest
• major repairs, conversions and extensions to owner-occupied housing
• 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
• regular cash payments to others outside the household
• investment-related expenditures (e.g. purchase of shares/stocks)

Classification: COICOP is used for classifying expenditure and has 10 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

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
• quality control

DATA PROCESSING, ANALYSIS AND DISSEMINATION

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

The responses are edited by the following:

• field supervisors
• office staff

Extreme values are retained without change. Consumption of own production is included in the estimates, but in-kind receipts are not. 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 current market value.

The following information is used in this valuation:

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.

The following groups are excluded from data analysis:²

Weighting:
Weighting factors are used to adjust for:

• sampling
• non-response

Sampling errors: Sampling errors are not computed.

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
• income percentiles, deciles
• principal source of household income
• household size
• structure of household
• other characteristic of household, socio-economic status and economic situation

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

• age of reference person or head of household
• income percentiles, deciles
• principal source of household income
• household size
• structure of household
• other characteristic of household, socio-economic status and economic situation

Documentation and Dissemination:
Published survey reports: family Budget Survey 96/97, may 1999
Published methodological information: it is included in the above report

Additional statistics (or special tables on request) are not available for public use. Separate tables are published for low income households. Files of unidentifiable unit data are not available (or available on request) for public use.