Albania

Title: Household budget survey 1999/2000

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Institut of statistics (instat) of Rruga lek dukagjini, nr, 5 Tirana Albania, phone: 335 4 2224 11 335 4 2304 84, fax: 335 4 22283 00, e-mail: amisha@instat.gov.al.
Data have been collected by household survey since 2000.

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

Lesser importance is attached to:

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

Geographic coverage: Urban areas only without any specific geographic areas excluded.

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

• one person private households
• private households with more than one person
• non-resident households of nationals (households of nationals located abroad)
• 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)
• diplomatic households in the country

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

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: Usual residents temporarily living away from the dwelling are included, if away continuously for less than 2 weeks. Domestic staff living in same dwelling/compound are not 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
• responsible for financial maintenance of household/unit
• responsible for decisions on main expenditures
• oldest person

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 12/99 to 11/00. These data are collected in the period from 12/99 to 11/00. This survey is conducted every 2-yearly. The statistics are published every 2-yearly.

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are enumeration area/district, dwelling and address respectively.

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

• rural/urban
• population density

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were the list of Census enumeration areas and none respectively. The sample size was 5387 households or other units. Errors/biases were minimized by using an increased sample size.

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 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
• commissions and tips
• goods produced for own consumption
• services produced for own consumption , gross of inputs
• 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
• other pensions
• unemployment benefits
• family-related allowances
• invalidity benefits
• education-related allowances
• food subsidies
• 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

The following receipts are collected but not separately:

• remuneration for time not worked, e.g. leave pay
• sickness benefits
• medical reimbursements

The following receipts are not collected:

• 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)
• 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
• regular pensions/annuities from schemes to which employee does not contribute
• old age benefits
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• other social insurance benefits
• other social assistance benefits
• 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: 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

The following receipts are classified as property income:

• rentals (payment received for produced assets e.g. house)

The following receipts are classified as employment-related transfer income:

• retirement pensions from compulsory social security schemes
• sickness benefits

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

• goods produced for own consumption
• services produced for own consumption , gross of inputs
• other pensions
• unemployment benefits
• family-related allowances
• invalidity benefits
• education-related allowances
• food subsidies
• 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

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

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

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

• goods produced for own consumption

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
• services produced for own consumption , gross of inputs
• 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
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• food subsidies
• 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

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 two weeks.

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 in last one month:
  • housing

• to expenditures in last 12 months:
  • clothing, footwear
  • other personal non-durable goods
  • other durable goods
  • households services
  • personal services
  • other items

Data for the following expenditure items are not collected by interview because they are collected by diary:

• food
• other household non-durable goods

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

• non-durable goods purchased
• durable goods purchased (except housing)
• major repairs, conversions and extensions to owner-occupied housing
• 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 , net of claims
• out of pocket education expenditures , net of refunds
• out of pocket transport expenditures , net of refunds
• 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

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
• 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
• interest payments (excluding mortgage interest payments)
• financial services (including fees for financial advice, brokerage fees)
• gambling expenditure
• 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 collected on an 'acquisitions' basis:

• non-durable goods purchased
• durable goods purchased (except housing)
• major repairs, conversions and extensions to owner-occupied housing
• 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 , net of claims
• out of pocket education expenditures , net of refunds
• out of pocket transport expenditures , net of refunds
• 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

Classification: COICOP is used for classifying expenditure and has an unspecified number of 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
• savings

Households are 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.

Non-response is reduced using the following measures:

• more than one repeat visits
• monetary rewards

Reporting errors are reduced using the following measures:

• careful instrument design
• 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:

• field supervisors
• office staff

Extreme values are amended. Neither in-kind receipts nor consumption of own production is included in the estimates.

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: Some 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. Etnic groups are excluded from data analysis.

Weighting:
Weighting factors are used to adjust for:

• sampling
• non-response

Sampling errors: Sampling errors are not computed.

Tabulation and Analysis:

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
• income percentiles
• absolute income groups
• principal source of household income
• expenditure percentiles
• expenditure classes in monetary terms
• 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
• other characteristic of reference person or head of household
• income percentiles
• absolute income groups
• principal source of household income
• expenditure percentiles
• expenditure classes in monetary terms
• household size
• structure of household

Documentation and Dissemination:
Published survey reports:¹ Preliminary Results of Household Budget Survey in Urban Areas, 07/01

Additional statistics (or special tables on request) are available for public use, free of charge. 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.