Saudi Arabia

Title: Consumer Expenditure Survey

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Central Dept. of Statistics of P.O.Box 3735 Riyadh 11481, phone: 9661 401 41 38, fax: 9661 405 94 93, e-mail: info@cds.gov.sa.
Data have been collected by household survey since 1970.

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 consumer behaviour among socio-economic groups
• for general poverty and/or income distribution studies

Lesser importance is attached to:

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

Geographic coverage: National with the following geographic areas excluded: remote or inaccessible areas .

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
• 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)
• 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)

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

• two or more people:
  • living in the same household
  • related:
    • by blood
    • by marriage
    • by adoption
  • sharing meals
  • sharing a common budget for (at least) food and housing expenditures
  • pooling their income to some extent

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

• two or more people:
  • living in the same household
  • sharing a single dwelling or compound
  • pooling their income to some extent

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

• 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: ¹ Usual residents temporarily living away from the dwelling are not included as unit members. Visitors (not usual residents) temporarily living in the dwelling are included, if staying continuously for more than 1 months. 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

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 10/98 to 09/99. These data are collected in the period from 10/98 to 09/99. 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 enumeration area/district, none and dwelling respectively.

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

• geographical regions
• rural/urban

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were master sample enumeration area and none respectively. The overall response rate for the survey was 94 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 divided into 12 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 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 but not separately:⁵

• 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
• 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
• 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
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• regular support received from non-profit institutions serving households: free dwelling
• regular support received from non-profit institutions serving households: subsidized dwelling

The following receipts are not collected:⁵

• 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
• old age benefits
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• 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 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 income from paid employment:

• 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

The following receipts are classified as property income:

• profit/loss from unincorporated enterprises (mixed income)

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

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

• drawing for own use from unincorporated enterprises
• 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 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
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• regular support received from non-profit institutions serving households: free dwelling
• regular support received from non-profit institutions serving households: subsidized 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
• 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
• 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
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• regular support received from non-profit institutions serving households: free dwelling
• regular support received from non-profit institutions serving households: subsidized dwelling

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 data and are maintained for one week. ²

Diaries are used to collect expenditure on the following items:³

• 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:⁴

• to expenditures last week:
  • food
  • other household non-durable goods
  • clothing, footwear

• to expenditures in last one month:
  • other personal non-durable goods
  • housing
  • other durable goods
  • personal services
  • other items

• to expenditures in last 12 months:
  • households services

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

• non-durable goods purchased
• durable goods purchased (except housing)
• purchase price of owner-occupied housing
• mortgage repayments, including interest
• services of owner-occupied housing
• major repairs, conversions and extensions to owner-occupied housing
• services from durables owned (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)
• life insurance premiums
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure
• out of pocket health expenditure
• out of pocket education expenditures
• out of pocket transport expenditures
• 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)
• investment-related expenditures (e.g. purchase of shares/stocks)
• occupational expenditures
• other business-related expenditures

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

• income in-kind receipts of goods
• income in-kind receipts of services
• own produced non-durable goods
• own-produced durable goods
• own-produced 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

Classification: A national classification is used for classifying expenditure and has 8 separate categories at the finest level. The classification is consistent with COICOP at the Division (2 digit) level.

7. Other Data Collection Issues

The following other topics are covered:

• demographic characteristics
• education attainment of members
• 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.

Reporting errors are reduced using the following measures:

• careful instrument design
• quality control
• reviewing the questionnaire in the field

DATA PROCESSING, ANALYSIS AND DISSEMINATION

Answers are pre-coded on data collection forms to the extent possible.⁶

The responses are edited by the following:

• interviewers, data collectors
• field supervisors
• office staff

Extreme values are amended. Consumption of own production is included in the estimates, but in-kind receipts are not.

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:

• recent sales data from local real estate agents

Treatment of selected groups/values in analysis: No households/units are excluded from analysis because of incomplete response. Missing values are by either retained without change or imputed, depen ding on the missing value in question. 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

Sampling errors: Sampling errors are computed for Total Income/Expenditure aggregates only and these sampling errors are available on request.

Tabulation and Analysis: Statistics are presented showing averages per month 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
• income percentiles
• principal source of household income
• expenditure classes in monetary terms
• household size

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
• income percentiles
• expenditure percentiles
• expenditure classes in monetary terms
• household size
• structure of household

Documentation and Dissemination:

Separate tables are published for households with wages/salaries as main source of income. Files of unidentifiable unit data are not available (or available on request) for public use.