Estonia

Title: Leibkonna Eelarve Uuring 2002 HH Buget Survey 2002

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Statistical Office of Estonia of Endla 15, 15174 Tallinn, Estonia, phone: 372 6259 218, fax: 372 6259 370, e-mail: elsa.leiten@ stat.ee.
Data have been collected by household survey since 1996.

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
• to study living conditions of household

Lesser importance is attached to:

• 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
• 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 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

Unit members: ¹ Usual residents temporarily living away from the dwelling are included, if away continuously for less than 12 months. 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: ²
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 01/02 to 12/02. These data are collected in the period from 01/02 to 12/02. This survey is conducted continuously.

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are household, none and household respectively.³

Stratification:
Areas/districts were stratified using the following criteria:⁴

• administrative districts

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were a set of administrative registers (or combination of such registers) and a set of administrative registers (or combination of such registers) respectively. The sample size was 9840 households or other units. ⁵ The overall response rate for the survey was 56 percent.⁶ Errors/biases were minimized by using an updated sampling frame, calibration,post-stratification.

Enumeration procedure: Enumeration uses a panel design in which each reporting unit is enumerated more than once. The sample is divided into 24 representative sub-samples, some of which none are replaced during the lifetime of the panel. The survey uses 2 sub-samples at the same time and drops 2 sub-samples each time. The panel has an expected lifetime of 2 years, and each reporting household/unit is enumerated 2 times in total. If changes occur in composition of the reporting household/unit during the lifetime of the panel, then it continues in the panel. No action is taken to select a smaller set of reporting units for more detailed questioning.

The survey period of household is one month. Each household is interviewed twice,the rotation period is 12 months (the second intervew is conducted in the same month of the year) where as every year half of the sample is replaced. So each month 410 add resses (and corresponding households) are the same as 12 month ago and 410 are in the sample for the first time..

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 excludes receipts that are not currently available to the unit.

The following receipts are collected separately:⁹

• wages and salaries
• employee income in-kind provided free or subsidized: housing¹¹
• employee income in-kind provided free or subsidized: meals¹¹
• employee income in-kind provided free or subsidized: car/transportation¹¹
• employee income in-kind provided free or subsidized: goods or services produced by employer¹¹
• profit/loss from unincorporated enterprises (mixed income)
• 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) , gross of expenses
• rents (payment received for un-produced assets e.g. land)
• royalties
• retirement pensions from compulsory social security schemes
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• survivors benefits
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular cash gifts
• regular inter-household transfers received from: regular in-kind gifts

The following receipts are collected but not separately:⁹

• cash bonuses and gratuities
• commissions and tips¹⁰
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• drawing for own use from unincorporated enterprises
• goods produced for barter , gross of inputs
• services produced for barter , gross of inputs
• services from owner-occupied dwellings
• regular pensions/annuities from schemes to which employee does not contribute
• old age benefits
• education-related allowances
• housing allowances
• free government dwelling
• subsidized government dwelling
• 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 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 inheritances or trusts
• 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 not collected:⁹

• employer social security contributions
• employee social security contributions
• services from other consumer durables (net)
• food subsidies
• 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 classified as income from paid employment:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips¹⁰
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• employee income in-kind provided free or subsidized: housing¹¹
• employee income in-kind provided free or subsidized: meals¹¹
• employee income in-kind provided free or subsidized: car/transportation¹¹
• employee income in-kind provided free or subsidized: goods or services produced by employer¹¹

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

• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption , gross of inputs
• services produced for own consumption , gross of inputs
• goods produced for barter , gross of inputs
• services produced for barter , gross of inputs
• stock consumed from unincorporated enterprise

The following receipts are classified as property income:

• 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

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

• retirement pensions from compulsory social security schemes

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

• regular pensions/annuities from schemes to which employee does not contribute
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• 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 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
• 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 reference period for:

• wages and salaries was survey month
• cash bonuses and gratuities was survey mont
• commissions and tips¹⁰ was survey month
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments was survey month
• employee income in-kind provided free or subsidized: housing¹¹ was survey month
• employee income in-kind provided free or subsidized: meals¹¹ was survey month
• employee income in-kind provided free or subsidized: car/transportation¹¹ was survey month
• employee income in-kind provided free or subsidized: goods or services produced by employer¹¹ was survey month
• profit/loss from unincorporated enterprises (mixed income) was survey month
• drawing for own use from unincorporated enterprises was survey month
• goods produced for own consumption , gross of input was survey month
• services produced for own consumption , gross of input was survey month
• goods produced for barter , gross of input was survey month
• services produced for barter , gross of input was survey month
• stock consumed from unincorporated enterprise was survey month
• services from owner-occupied dwellings was survey month
• interest received was survey month
• dividends was survey month
• rentals (payment received for produced assets e.g. house) , gross of expense was survey month
• rents (payment received for un-produced assets e.g. land) was survey month
• royalties was survey month
• regular pensions/annuities from schemes to which employee does not contribute was survey month
• retirement pensions from compulsory social security schemes was survey month
• old age benefits was survey month
• other pensions was survey month
• unemployment benefits was survey month
• family-related allowances was survey month
• sickness benefits was survey month
• invalidity benefits was survey month
• education-related allowances was survey month
• housing allowances was survey month
• survivors benefits was survey month
• free government dwelling was survey month
• subsidized government dwelling was survey month
• medical reimbursements was survey month
• other social insurance benefits was survey month
• other social assistance benefits was survey month
• regular support received from non-profit institutions serving households: cash, e.g. scholarships was survey month
• regular support received from non-profit institutions serving households: goods and services was survey month
• regular support received from non-profit institutions serving households: free dwelling was survey month
• regular support received from non-profit institutions serving households: subsidized dwelling was survey month
• regular inter-household transfers received from: family, e.g. alimony, child/parental support was survey month
• regular inter-household transfers received from: regular inheritances or trusts was survey month
• regular inter-household transfers received from: regular cash gifts was survey month
• regular inter-household transfers received from: regular in-kind gifts was survey month
• social transfers in kind: medical services was survey month
• social transfers in kind: public education was survey month
• social transfers in kind: transport subsidies was survey month
• social transfers in kind: cultural and recreational services was survey month
• social transfers in kind: others was survey month

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 included when computing self-employment income.

6. Expenditure data

Data collection method:
Diaries are used to collect expenditure data and are maintained for one month. ⁸

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)
• expenditure on producing

Interviews are not used to collect expenditure data.

Classification: COICOP is used for classifying expenditure and has 696 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

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
• other incentives : souvenirs of the statistical office and raffle

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

Extreme values are amended. ¹² 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. Missing values are imputed always .¹³ 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 computed for major aggregates and these sampling errors are published.¹⁴

Tabulation and Analysis:

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

• sex of reference person or head of household
• other characteristic of reference person or head of household, general education and professional education
• absolute income groups
• household size
• structure of household
• other characteristic of household, labour market situation, general education, professional education
• other classification, region, urban/rural areas

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

• sex of reference person or head of household
• other characteristic of reference person or head of household, general education and professional education
• absolute income groups
• household size
• structure of household
• other classification, region, urban/rural areas

Documentation and Dissemination:
Published survey reports: Household's Income and Expenditure(1996,..,1999) household Living Niveau (2000,2001)

Additional statistics (or special tables on request) are available for public use, free of charge (statistical database on Homepages http://www.stat.ee).

Separate tables are published for the following special population groups:¹⁵

• low income households