Czech Republic

Title: Household Budget 2001

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Czech Statistical Office of Sokolovskà 142 186 04 Praha 8, e-mail: kalmus@gw.czso.cz.
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 study the general structure of household incomes/expenditures
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

Lesser importance is attached to:

to estimate household expenditure for national accounts
to study income/expenditure patterns of disadvantaged groups, including pensioner households, single parent households, etc
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
private households with more than one person
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)
diplomatic households in the country
households of other foreigners in the country
armed forces residing in private housing within 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

Unit members: Usual residents temporarily living away from the dwelling are included, if away continuously for less than 2 months. Visitors (not usual residents) temporarily living in the dwelling are not included as unit members. Renters living in same dwelling/compound are not included in the unit. Boarders living in same dwelling/compound are not included in the unit.

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 01/01 to 12/01.These data are collected in the period from 01/01 to 12/01. This survey is conducted continuously. The statistics are published quartely and annually.

SURVEY METHODOLOGY

4. Sample design

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

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

geographical regions

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

income class
social class of the head
number of children

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were and none respectively.² Primary Sampling Units (PSU) were selected using quota sampling. The sample size was 3184 households or other units. ³

Enumeration procedure: Enumeration uses neither a single round survey design nor a panel design. No action is taken to select a smaller set of reporting units for more detailed questioning.

In our quota sample the reporting households are kept as long as they comply with our sampling criteria (social class, income bracket, number of children, region) or as long as they themselves do not drop out. This couldimply a certain resemblance of our sample to a sort of panel. From year to year we change, however, about one third of households, and this change is contingent. Our fieldworkers (employees of our local branches) visit the hhmonthly, and collect (and correct) records of household's expe nditure. Whena household drops out, or when its characteristics change substantially, a new household is supplied in its stead..

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:⁴

employer social security contributions, excluded for other reasons
employee social security contributions, excluded for other reasons
drawing for own use from unincorporated enterprises
unemployment benefits
family-related allowances
sickness benefits

The following receipts are collected but not separately:⁴

wages and salaries
cash bonuses and gratuities
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
goods produced for own consumption, gross of inputs
services produced for own consumption, gross of inputs
stock consumed from unincorporated enterprise
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
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
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:⁴

commissions and tips
profit/loss from unincorporated enterprises (mixed income)
services from owner-occupied dwellings
services from other consumer durables (net)
old age benefits
medical reimbursements
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
remuneration for time not worked, e.g. leave pay
termination and redundancy payments
drawing for own use from unincorporated enterprises

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

rentals (payment received for produced assets e.g. house)
rents (payment received for un-produced assets e.g. land)
royalties

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

regular pensions/annuities from schemes to which employee does not contribute
retirement pensions from compulsory social security schemes
unemployment benefits
family-related allowances

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

other pensions
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

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

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, gross of inputs
services produced for own consumption, gross of inputs
stock consumed from unincorporated enterprise
interest received
dividends
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 for other reasons:

employer social security contributions
employee social security contributions

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

drawing for own use from unincorporated enterprises
goods produced for own consumption, gross of inputs
services produced for own consumption, gross of inputs
stock consumed from unincorporated enterprise
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
unemployment benefits
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
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:

employer social security contributions
employee social security contributions

The reference period for:

wages and salaries
cash bonuses and gratuities
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

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 is used for classifying expenditure and has 320 separate categories at the finest level.⁴ The classification is consistent with COICOP at the Class (4 digit) 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

Households are requested to indicate whether durable goods are new or second-hand when their acquisition is recorded.

Non-response:

Reporting errors are reduced using quality control.

DATA PROCESSING, ANALYSIS AND DISSEMINATION

Answers are not pre-coded on data collection forms, but are coded by the interviewers (data collectors).

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 imputed by field staff using market prices. Consumption of own production is valued using: the imputed by field staff using market prices.

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 groups are excluded from data analysis.

Weighting:
Weighting factors are used to adjust for:

sampling
bench-marking

Sampling errors: Sampling errors are not computed.

Tabulation and Analysis: Statistics are presented showing averages per year and statistics are analysed and tabulated for households only.

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

occupation of reference person or head of household
income percentiles
household size
structure of household
other classification, households with children on very low income

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

occupation of reference person or head of household
income percentiles
household size
structure of household
other classification, households with children on very low income

Documentation and Dissemination:
Published survey reports: prijmy,vydàni a spotreba domàcnosti statistiky rodinnych uctu za rok 2001,Dil 1-3, 06/02
Published methodological information: pokyny pro zjistovani a zpracovani udaju statistiky rodinnych uctu, 01/02

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

Separate tables are published for the following special population groups:

households with wages/salaries as main source of income
low income households

Files of unidentifiable unit data are available (or available on request) for public use, with charges.

(1) Household head is always male in what are called complete families (two partners with or without children). In one-parent families it is mostly the parent. Only in thecases where he/she is inactive, an active child is the head instead. The head of a no n-family household is the person with the highest income. (2) Selection of HH left to the local CZSO workers. (3) 3184 (main sample) and 400 (poor households with children). (4) Once every five years the number is about five times higher. (4) Classification of income is based on slightly different criteria. Employee's income, income of the self-employed, social income (transfers), and other income are separately distinguished. The concept of employment-related income is not used. Transfer i ncincome and other income are not distinguished at all in the survey. The classification has been determined intuitively in the responses shown here. The survey does not gather information on employer's social security contributions because they are determ ined by law, and are thus easily imputable.