Maldives

Title: Housaehold Income and Expenditure Survey 2002/2003

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Ministery of planning and National Development of Statistics Section Ghazee Building, Ameerahmed Magu, male Republic of Maldives., phone: 960 332051, fax: 960 318343, e-mail: stat@planning.gov.mv.
Data have been collected by household survey since 1993.

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
• nutrition

Lesser importance is attached to:

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

Geographic coverage: Selected areas only, namely through sample selection,nationwide with the following geographic areas excluded: none .

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

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

Data are recorded for the family unit which is characterised by:

• two or more people:
  • living in the same household
  • sharing meals
• all persons of household present during past week

Unit members: Usual residents temporarily living away from the dwelling are included, if away continuously for less than 7 days. Visitors (not usual residents) temporarily living in the dwelling are included, if staying continuously for more than 7 days. 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 included in the unit.

3. Reference periods

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are enumeration area/district, block and household respectively.

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

• geographical regions

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 simple random sampling. The sample size was 880 households or other units. Errors/biases were minimized by using an updated sampling frame.

Enumeration procedure: Enumeration uses a panel design in which each reporting unit is enumerated more than 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
• cash bonuses and gratuities

The following receipts are collected but not separately:

• 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
• goods produced for own consumption
• services produced for own consumption
• rentals (payment received for produced assets e.g. house)
• rents (payment received for un-produced assets e.g. land)
• 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
• education-related allowances
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• food subsidies
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships

The following receipts are not collected:

• commissions and tips
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• employer social security contributions
• employee social security contributions
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for barter
• services produced for barter
• stock consumed from unincorporated enterprise
• services from owner-occupied dwellings
• services from other consumer durables (net)
• interest received
• dividends
• royalties
• unemployment benefits
• medical reimbursements
• other social insurance benefits
• 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

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

• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• other pensions
• regular support received from non-profit institutions serving households: cash, e.g. scholarships

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

• old age benefits

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

• wages and salaries
• cash bonuses and gratuities
• 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
• goods produced for own consumption
• services produced for own consumption
• rentals (payment received for produced assets e.g. house)
• rents (payment received for un-produced assets e.g. land)
• 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
• education-related allowances
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• food subsidies
• other social insurance benefits
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships

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 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)
• clothing, footwear
• other personal non-durables (such as perfumes)
• household services (such as plumber)
• personal services (such as driving lessons, haircuts)
• travelling education

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
  • other personal non-durable goods
  • housing
  • households services
  • personal services

• to expenditures in last 3 months:
  • clothing, footwear
  • other items: education

• to expenditures in last 12 months:
  • other durable goods

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

• housing maintenance, minor repairs

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

• non-durable goods purchased
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• out of pocket health expenditure , gross of claims
• out of pocket education expenditures , gross of refunds
• out of pocket transport expenditures , gross of refunds

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

• durable goods purchased (except 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) , gross of claims
• life insurance premiums , gross of claims

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

• purchase price of owner-occupied housing
• mortgage repayments, including interest
• services of owner-occupied housing
• 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

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

• occupational expenditures
• other business-related expenditures

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

• purchase of gifts of goods and services given to others outside the household

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

• non-durable goods purchased
• durable goods purchased (except 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) , gross of claims
• life insurance premiums , gross of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• out of pocket health expenditure , gross of claims
• out of pocket education expenditures , gross 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
• 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)

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:

• 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.

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

Non-response is reduced using the following measures:

• more than one repeat visits
• other measures : official letters were handed to households requesting cooperation

Reporting errors are reduced using the following measures:¹

• careful instrument design

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

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 not included in the total income/expenditure estimates.

Treatment of selected groups/values in analysis: No households/units are excluded from analysis because of incomplete response.

The following groups are excluded from data analysis:

• Etnic groups
• income groups

Weighting:
No information was provided on sample weighting.

Sampling errors: No information was provided on samplimg errors.

Tabulation and Analysis:

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

• income percentiles
• absolute income groups
• expenditure percentiles
• expenditure classes in monetary terms
• household size
• other characteristic of household, per capita income and expenditure groups and deciles

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

• income percentiles
• absolute income groups
• expenditure percentiles
• expenditure classes in monetary terms
• household size
• other characteristic of household, per capita income and expenditure groups and deciles
• other classification, cOICOP

Documentation and Dissemination:

Separate tables are not published for any special population groups.