Denmark

Title: Forbrugsundersögelsen- Household Budget Survey 99/01

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Statistics Denmark of Sejrogade 11, DK 2100 Copenhagen, phone: 0045 39173411, fax: 0045 39173999, e-mail: bom@dst.dk.
Data have been collected by household survey since 1976. ¹

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

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

• one person private households
• private households with more than one person
• households of other foreigners in the country
• armed forces residing in private housing within military base
• 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

Units:
Dwelling units are used in the sample selection and are characterised by:

• single unit in a structure containing more than one housing unit

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 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 not included as unit members. Visitors (not usual residents) temporarily living in the dwelling are not included as unit members. 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 head of household/other unit is used in this survey and is characterised by:

• main income earner

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 01/99 to 12/01. These data are collected in the period from 01/99 to 12/01. This survey is conducted continuously. The statistics are published annually.

SURVEY METHODOLOGY

4. Sample design

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

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

• rural/urban
• administrative districts

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were a register of addresses and none respectively. Primary Sampling Units (PSU) were selected using area around the interviewer's dwelling defined by administrative areas. The sample size was 3000 households or other units and 3000 interviews. The overall response rate for the survey was 62 percent.

Enumeration procedure: Enumeration uses a single round survey design in which each reporting unit is enumerated only once. No action is taken to select a smaller set of reporting units for more detailed questioning.

The addresses that should be vidited during one year are grouped into 52 weeks deciding when the interviewer tries to visit the address..

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 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:

• 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: other goods or services
• profit/loss from unincorporated enterprises (mixed income)
• goods produced for own consumption , gross of inputs
• services produced for own consumption , gross of inputs
• services from owner-occupied dwellings
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , gross of expenses
• 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
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• other social insurance benefits
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• 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
• social transfers in kind: medical services , excluded for other reasons
• social transfers in kind: public education , excluded for other reasons
• social transfers in kind: others , excluded for other reasons

The following receipts are collected but not separately:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• royalties

The following receipts are not collected:

• employee income in-kind provided free or subsidized: goods or services produced by employer
• drawing for own use from unincorporated enterprises
• stock consumed from unincorporated enterprise
• services from other consumer durables (net)
• free government dwelling
• subsidized government dwelling
• food subsidies
• medical reimbursements
• 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: 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: transport subsidies
• social transfers in kind: cultural and recreational services

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
• 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: other goods or services

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

• profit/loss from unincorporated enterprises (mixed income)
• goods produced for own consumption , gross of inputs
• services produced for own consumption , gross of inputs
• interest received
• royalties

The following receipts are classified as property income:

• services from owner-occupied dwellings
• dividends
• rentals (payment received for produced assets e.g. house) , gross of expenses
• rents (payment received for un-produced assets e.g. land)
• other social insurance benefits
• other social assistance benefits

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
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• regular inter-household transfers received from: family, e.g. alimony, child/parental support

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

• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• regular inter-household transfers received from: regular inheritances or trusts
• regular inter-household transfers received from: regular cash gifts

The following receipts are excluded for other reasons:

• social transfers in kind: medical services
• social transfers in kind: public education
• social transfers in kind: others

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
• profit/loss from unincorporated enterprises (mixed income)
• goods produced for own consumption , gross of inputs
• services produced for own consumption , gross of inputs
• services from owner-occupied dwellings
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , gross of expenses
• 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
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• other social insurance benefits
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• 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
• social transfers in kind: medical services
• social transfers in kind: public education
• social transfers in kind: others

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 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)
• everything else

Interviews are used to collect expenditure data with the respondent completing the interview by recall only.

Data for the following expenditure items are collected by referring:

• to expenditures in last 12 months:
  • other household non-durable goods

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

• food
• clothing, footwear
• other personal non-durable goods
• housing
• other durable goods
• households services
• personal services
• other items: other fixed payment,medical 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
• 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
• financial services (including fees for financial advice, brokerage fees)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical)
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , gross of winnings
• 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
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• expenditure abroad

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

• mortgage repayments, including interest³
• interest payments (excluding mortgage interest payments)
• 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)

The following types of expenditure items are classified as 'Investment/liability expenditure':

• life insurance premiums , gross of claims

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

• own produced non-durable goods
• own-produced durable goods
• social transfers in-kind of goods and services from government and non-profit institutions serving households
• gambling expenditure , gross of winnings

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

• services of owner-occupied housing
• income in-kind receipts of goods
• income in-kind receipts of services

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

• non-durable goods purchased
• durable goods purchased (except housing)
• mortgage repayments, including interest³
• major repairs, conversions and extensions to owner-occupied 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 , 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
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• expenditure abroad
• compulsory transfers to governments (e.g. contributions to government old age and disability insurance program, taxes)

Classification: COICOP is used for classifying expenditure and has 1000 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
• indebtedness

Households are not 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
• other incentives : gift and lottery

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
• office staff

⁴ In-kind receipts and consumption of own production are included in the estimates. In-kind receipts are valued using: tax based records 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:

• 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. Missing values are imputed always . Supplementary sources are 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
• 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 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
• other characteristic of reference person or head of household
• income percentiles
• absolute income groups
• principal source of household income
• expenditure classes in monetary terms
• household size
• structure of household
• other characteristic 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 classes in monetary terms
• household size
• structure of household
• other characteristic of household

Documentation and Dissemination:
Published survey reports: forbrugsundersögelsen 99/01 Analyser pä grundlag af forbrugsundersögelsen 03, february 2003
Published methodological information: forbrugsundersögelsen. Metodebeskrivelse, 1999

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

Separate tables are published for the following special population groups:

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