Hungary

Title: Household Budget Survey 2003

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Central Statistical Office of H-1024 5-7 Keleti K. str. Budapest, phone: 361 345 6196, e-mail: zsuzsa.szabo@office.ksh.hu.
Data have been collected by household survey since 1949.

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 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
• calculation of minimum subsistence level (national poverty line)

Lesser importance is attached to:

• to study effects on income and expenditure of policy changes, especially tax changes
• 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

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
• armed forces residing in private housing outside military base
• nomadic and other households difficult to reach: homeless

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

• street address

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

Unit members: ¹ Usual residents temporarily living away from the dwelling are included, if away continuously for less than 15 days. Visitors (not usual residents) temporarily living in the dwelling are included, if staying continuously for more than 15 days. 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.

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 01/03 to 12/03. These data are collected in the period from 01/03 to 03/04. This survey is conducted continuously. The statistics are published quartely and annually. ³

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

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

• age group of the head
• educational level of household head, household size,economic activity of the household head

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were the list of Census enumeration areas and the master sample of households respectively. Primary Sampling Units (PSU) were selected using probability proportional to size. The sample size was 11000 households or other units. The overall response rate for the survey was 62 percent.⁴ Errors/biases were minimized by using systematic substitution.

Enumeration procedure: Enumeration uses a panel design in which each reporting unit is enumerated more than once. The sample is divided into 3 representative sub-samples, some of which are replaced with new ones during the lifetime of the panel. Each sub-sample remains in the panel for 36 months. The survey uses 3 sub-samples at the same time and drops 1 sub-samples each time. The panel has an expected lifetime of 3 years, and each reporting household/unit is enumerated 3 times in total. If a reporting household/unit drops out from the panel, it is abandonned. If changes occur in composition of the reporting household/unit during the lifetime of the panel, then it continues in the panel. A smaller set of reporting units is selected from which information on specific issues is gathered or more detailed questions are asked.

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:

• 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: other goods or services (recreation)
• profit/loss from unincorporated enterprises (mixed income)
• goods produced for own consumption , net of inputs
• unemployment benefits
• family-related allowances
• sickness benefits
• education-related allowances
• 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
• regular inter-household transfers received from: regular in-kind gifts

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
• employee income in-kind provided free or subsidized: car/transportation
• employee income in-kind provided free or subsidized: goods or services produced by employer
• interest received
• dividends
• 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
• invalidity benefits
• housing allowances
• survivors benefits
• food subsidies
• other social insurance benefits

The following receipts are not collected:

• employer social security contributions
• rentals (payment received for produced assets e.g. house) , net of expenses
• royalties
• free government dwelling
• subsidized government dwelling
• medical reimbursements
• other social assistance benefits
• 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: 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
• 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 (recreation)

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

• profit/loss from unincorporated enterprises (mixed income)

The following receipts are classified as property income:

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

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
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• food subsidies
• other social insurance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships

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

• goods produced for own consumption , net of inputs
• 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

The following receipts are collected using the 'last payment' and 'period covered':

• goods produced for own consumption , net of inputs
• 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
• food subsidies
• other social insurance 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
• regular inter-household transfers received from: regular in-kind gifts

The reference period for:

• wages and salaries was receipts during the last 12 months or on a "last payment and period covered" basis
• cash bonuses and gratuities was receipts during the last 12 months or on a "last payment and period covered" basis
• commissions and tips was receipts during the last 12 months or on a "last payment and period covered" basis.
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments was receipts during the last 12 months or on a "last payment and period covered" basis.
• employee social security contributions was receipts during the last 12 months or on a "last payment and period covered" basis.
• employee income in-kind provided free or subsidized: housing was receipts during the last 12 months or on a "last payment and period covered" basis.
• employee income in-kind provided free or subsidized: meals was receipts during the last 12 months or on a "last payment and period covered" basis.
• employee income in-kind provided free or subsidized: car/transportation was receipts during the last 12 months or on a "last payment and period covered" basis.
• employee income in-kind provided free or subsidized: goods or services produced by employer was receipts during the last 12 months or on a "last payment and period covered" basis.
• employee income in-kind provided free or subsidized: other goods or services (recreation was receipts during the last 12 months or on a "last payment and period covered" basis.
• profit/loss from unincorporated enterprises (mixed income) was receipts during the last 12 months or on a "last payment and period covered" basis.
• interest received was receipts during the last 12 months or on a "last payment and period covered" basis.
• dividends was receipts during the last 12 months or on a "last payment and period covered" basis.
• rentals (payment received for produced assets e.g. house) , net of expense was receipts during the last 12 months or on a "last payment and period covered" basis.

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 month.

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 12 months:
  • other household non-durable goods
  • clothing, footwear
  • other personal non-durable goods
  • housing
  • other durable goods
  • households services
  • personal services

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

• food
• other items: own produced food, alcohol, firewood

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

• own produced non-durable goods

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

• non-durable goods purchased
• durable goods purchased (except housing)
• income in-kind receipts of goods
• income in-kind receipts of 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
• 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

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

• 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) , net of claims
• life insurance premiums , net of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , net of winnings
• out of pocket health expenditure , net of claims
• out of pocket education expenditures , net of refunds
• out of pocket transport expenditures , net of refunds
• 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':

• purchase price of owner-occupied housing
• mortgage repayments, including interest
• major repairs, conversions and extensions to owner-occupied housing
• investment-related expenditures (e.g. purchase of shares/stocks)

The following types of expenditure items are excluded due to measurement problems:

• valuables
• 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)
• purchase price of owner-occupied housing
• mortgage repayments, including interest
• 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
• 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)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , net of claims
• life insurance premiums , net of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , net of winnings
• 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
• 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)

Classification: COICOP is used for classifying expenditure and has 320 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
• indebtedness

Households are not 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:

• quality control
• consistency cheks

DATA PROCESSING, ANALYSIS AND DISSEMINATION

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

Extreme values are amended. 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 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: Some households/units are excluded from analysis because of incomplete response. Missing values are imputed always . 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
• bench-marking

Sampling errors: Sampling errors are computed for major aggregates and these sampling errors are published.

Tabulation and Analysis: Statistics are presented showing averages per year⁷ 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
• occupation of reference person or head of household
• other characteristic of reference person or head of household, types of households
• household size
• structure of household
• other characteristic of household, households with children
• other classification, regions

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

• age of reference person or head of household
• occupation of reference person or head of household
• other characteristic of reference person or head of household, types of households
• income percentiles, deciles, quintiles
• household size
• structure of household
• other characteristic of household, households with children
• other classification, regions

Documentation and Dissemination:
Published survey reports: quarterly Report of Household Statistics 05/03 Yearbook of Household Statistics 11/03, minimum Subsistence Level 06/03
Published methodological information: methodology Chapter in each Yearbook, every year

Additional statistics (or special tables on request) are available for public use, with charges (depends on the request). Separate tables are published for households with wages/salaries as main source of income. Files of unidentifiable unit data are available (or available on request) for public use, with charges.