Jordan

Title: Household Expenditure and Income Survey 2002/2003

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Department of Statistics (DOS) of PObox 2015 Jubaiha 11941, phone: 53 00 700, e-mail: adnan@dos.gov.jo.
Data have been collected by household survey since 1966.

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
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

Lesser importance is attached to:

to study consumer behaviour among socio-economic groups

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
diplomatic households in the country
households of other foreigners in the country

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
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 meals
- 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 45 days. Visitors (not usual residents) temporarily living in the dwelling are included, if staying continuously for more than 44 days. 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
responsible for financial maintenance of household/unit
responsible for decisions on main expenditures

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 03/02 to 03/03.These data are collected in the period from 03/02 to 03/03. 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 block, none and household respectively.

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

rural/urban
administrative districts
subdistricts

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

socio-economic character

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were the list of Census blocks and a separate listing exercise respectively. Primary Sampling Units (PSU) were selected using probability proportional to size and Ultimate Sampling Units (USU) were selected using systematic sample 12 household from each block. The sample size was 12792 households or other units. The overall response rate for the survey was 92 percent. Errors/biases were minimized by using an updated sampling frame, an increased sample size.

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. 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 period of the survey is complete year, this year divided to four quarters, each quarter 13 weeks. And we that our sample size is 12.792 hh. For each quarter we divide the whole sample to 13 sub sub-samples. In each week in the quarter we collect the data of only one sub-sample, so we can visit all the households in our sample in each quarter.In each quarter dataon food expenditure for each H/week is collected; i.e a hh.expenditure/weekcollected one time in each quarter. Non food expenditure for e ach hh duringthe quarter (13weeks) is collected by visiting the hh. at the end of each month. Income data is collected two times, first time at the end of the second quarter and second at the end of survey year..

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 includes receipts that are not currently available to the unit.

The following receipts are collected separately:¹

profit/loss from unincorporated enterprises (mixed income)
goods produced for own consumption
services from owner-occupied dwellings
services from other consumer durables (net)
dividends
rentals (payment received for produced assets e.g. house)
rents (payment received for un-produced assets e.g. land)
retirement pensions from compulsory social security schemes

The following receipts are collected but not separately:¹

wages and salaries
cash bonuses and gratuities
commissions and tips
remuneration for time not worked, e.g. leave pay
termination and redundancy payments
employer social security contributions
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
goods produced for barter, net of inputs
services produced for barter
stock consumed from unincorporated enterprise
interest received
royalties
regular pensions/annuities from schemes to which employee does not contribute
other pensions
family-related allowances
sickness benefits
invalidity benefits
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:¹

services produced for own consumption, excluded due to measurement problems
old age benefits, excluded for other reasons
unemployment benefits, excluded for other reasons
education-related allowances, excluded for other reasons
housing allowances , excluded for other reasons
survivors benefits, excluded for other reasons
free government dwelling, excluded for other reasons
subsidized government dwelling, excluded for other reasons
food subsidies, 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
cash bonuses and gratuities
commissions and tips
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:

profit/loss from unincorporated enterprises (mixed income)
drawing for own use from unincorporated enterprises
goods produced for own consumption
services produced for barter
stock consumed from unincorporated enterprise
services from other consumer durables (net)

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 employment-related transfer income:

termination and redundancy payments
employer social security contributions
employee social security contributions
retirement pensions from compulsory social security schemes
family-related allowances
sickness benefits
invalidity benefits

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

remuneration for time not worked, e.g. leave pay
regular pensions/annuities from schemes to which employee does not contribute
other pensions
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 excluded due to measurement problems:

services produced for own consumption
food subsidies
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:

old age benefits
unemployment benefits
education-related allowances
housing allowances
survivors benefits
free government dwelling
subsidized government dwelling

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
employer social security contributions
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
profit/loss from unincorporated enterprises (mixed income)
drawing for own use from unincorporated enterprises
goods produced for own consumption
services produced for own consumption
goods produced for barter, net of inputs
services produced for barter
stock consumed from unincorporated enterprise
services from owner-occupied dwellings
services from other consumer durables (net)
interest received
dividends
rentals (payment received for produced assets e.g. house)
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
other pensions
family-related allowances
sickness benefits
invalidity 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 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
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

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

6. Expenditure data

Data collection method:
Diaries are used to collect expenditure data and are maintained for 3 months .

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 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:

to expenditures last week:
- food

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

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
income in-kind receipts of services
out of pocket health expenditure
out of pocket education expenditures
out of pocket transport expenditures
housing maintenance, minor repairs
second hand goods purchased
expenditure abroad
valuables

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

own produced non-durable goods
own-produced durable goods
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 classified as 'Non-consumption household expenditure':

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)
non-regular cash payments to others outside the household
purchase of gifts of goods and services given 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
regular cash payments to others outside the household

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

own-produced services
gambling expenditure

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

investment-related expenditures (e.g. purchase of shares/stocks)
occupational expenditures
other business-related expenditures

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
income in-kind receipts of goods
income in-kind receipts of services
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
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)
out of pocket health expenditure
out of pocket education expenditures
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

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

own produced non-durable goods
own-produced durable goods

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
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)

Classification: A national classification that is not consistent with COICOP is used for classifying expenditure and has 6 separate categories at the finest level.

7. Other Data Collection Issues

The following other topics are covered:

education attainment of members
employment status of members
occupation of members
ownership of selected durable goods
housing characteristics

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.

Non-response is reduced using more than one repeat visits.

Reporting errors are reduced using the following measures:

careful instrument design
bounding interview
adequate cues or props for prompting
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:

interviewers, data collectors
field supervisors
office staff

Extreme values are retained without change. 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:

respondent provides an estimate
interviewer provides an estimate
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. Supplementary sources are used to adjust estimates for under- or over-reporting. Etnic groups are excluded from data analysis.

Weighting:
Weighting factors are used to adjust for:

sampling
non-response

Sampling errors: Sampling errors are computed for Total Income/Expenditure aggregates only but these sampling errors are not available.

Tabulation and Analysis: Statistics are presented showing averages per year 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
absolute income groups
principal source of household income
household size
structure of household

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
absolute income groups
principal source of household income
expenditure classes in monetary terms
household size
structure of household

Documentation and Dissemination:
Published survey reports: household Expenditure and Income Survey 1997, march 1999

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

(1) The following receipts are classified as rental income: Services from owner-occupied dwellings and Rentals.