Japan

Title: National Survey of Family Income and Expenditure 1999

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Statistics Bureau, Ministery of Public Management Home Affairs, Posts and Telecommunications of Wakamatsu-cho 19-1 Shinjuku-ku Tokyo Japan, phone: 81 3 5273 1171, fax: 81 3 5273 1495, e-mail: consumer@stat.go.jp.
Data have been collected by household survey since 1959.

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

The following types of household are excluded in the data collection:

• private households with more than one person
• 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
• 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

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 a common budget for (at least) food and housing expenditures
  • pooling their income to some extent

Unit members: Usual residents temporarily living away from the dwelling are included, if away continuously for less than 3 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 head of household/other unit is used in this survey and is characterised by:

• main income earner

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 09/99 to 11/99. These data are collected in the period from 09/99 to 11/99. This survey is conducted 5-yearly. The statistics are published 5-yearly.

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are none, none and none respectively.¹

Stratification:
Areas/districts were stratified using the following criteria:²

• geographical regions
• rural/urban
• administrative districts

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 probability proportional to size. The sample size was 60000 households or other units. The overall response rate for the survey was 100 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. 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 do not 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:⁵

• wages and salaries
• employee social security contributions
• services from owner-occupied dwellings , excluded for other reasons: estimated and tabulated separately from receipts
• rentals (payment received for produced assets e.g. house) , net of expenses

The following receipts are collected but not separately:⁵

• 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
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption , net of inputs
• goods produced for barter , net of inputs
• stock consumed from unincorporated enterprise
• interest received
• dividends
• 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
• free government dwelling
• subsidized government dwelling
• 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 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
• regular inter-household transfers received from: regular free services

The following receipts are not collected:⁵

• employer social security contributions , excluded due to measurement problems
• services produced for own consumption , excluded due to measurement problems
• services produced for barter , excluded due to measurement problems
• services from other consumer durables (net) , 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
• 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

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

• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption , net of inputs
• goods produced for barter , net of inputs)
• stock consumed from unincorporated enterprise
• rentals (payment received for produced assets e.g. house) , net of expenses

The following receipts are classified as property income:

• interest received
• dividends
• rents (payment received for un-produced assets e.g. land)
• royalties

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

• employee social security contributions
• 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
• free government dwelling
• subsidized government dwelling
• 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 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: free dwelling
• regular inter-household transfers received from: subsidized dwelling
• regular inter-household transfers received from: regular free services

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

• cash bonuses and gratuities
• commissions and tips
• regular inter-household transfers received from: regular cash gifts
• regular inter-household transfers received from: regular in-kind gifts

The following receipts are excluded due to measurement problems:

• employer social security contributions
• services produced for own consumption
• services produced for barter
• services from other consumer durables (net)
• 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 excluded for other reasons:

• services from owner-occupied dwellings

The following receipts are collected using the last 3 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
• 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
• goods produced for own consumption , net of inputs
• goods produced for barter , net of inputs
• 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
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• 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 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
• regular inter-household transfers received from: regular free services

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

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

Income data were collected separately for each person receiving income. Components of income for an individual were collected from one person who reported for all individuals. Negative values (business losses) were excluded when computing self-employment income.

6. Expenditure data

Data collection method:

Diaries are used to collect expenditure on the following items:

• food
• alcohol, tobacco
• other household non-durables (such as newspapers, batteries)
• clothing, footwear
• other personal non-durables (such as perfumes)
• household services (such as plumber)
• personal services (such as driving lessons, haircuts)

Interviews are not used to collect expenditure data.

Classification: A national classification that is not consistent with COICOP is used for classifying expenditure and has 400 separate categories at the finest level.

7. Other Data Collection Issues

The following other topics are covered:

• demographic characteristics
• 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.⁴

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

Reporting errors are reduced using the following measures:

• careful instrument design
• adequate cues or props for prompting
• quality control

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 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 rental equivalent net of housing costs usually paid by owners.

The following information is used in this valuation:

• imputed based on housing and rent data

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 yearly income. 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:⁴

• sampling
• 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 month and statistics are analysed and tabulated for households and for individuals separately.

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, industry, size of enterprises
• income percentiles, deciles, quintiles
• absolute income groups
• principal source of household income
• household size
• structure of household
• other classification, region, type of dwelling. Amount of savings

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, industry, size of enterprises
• income percentiles, deciles, quintiles
• absolute income groups
• principal source of household income
• household size
• structure of household
• other classification, region, type of dwelling. Amount of savings

Documentation and Dissemination:
Published survey reports: 1999 National Survey of Family Income and Expenditure (1999), (5)
Published methodological information: reports on 1999 National Survey of Family Income and Expenditure., march 2002

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

Separate tables are published for the following special population groups:

• households with wages/salaries as main source of income