Ireland

Title: Household Budget Survey

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Central Statistics Office of Skehard Road, Mahon, Cork, Ireland, phone: 00 353 21 4535120, fax: 00 353 21 4535153, e-mail: jim.dalton@cso.ie.
Data have been collected by household survey since 1951.

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

Geographic coverage: National with the following geographic areas excluded: remote or inaccessible areas .

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

• one person private households
• private households with more than one person
• diplomatic households in the country
• households of other foreigners in the country

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
• armed forces residing in private housing outside military base
• nomadic and other households difficult to reach: non-private households, holiday homes

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

• single unit in a structure containing more than one housing unit
• 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
• sharing common cooking facilities

Unit members: Usual residents temporarily living away from the dwelling are included, if away continuously for less than 6 months. Visitors (not usual residents) temporarily living in the dwelling are not included as unit members. Domestic staff living in same dwelling/compound are included in the unit. Renters living in same dwelling/compound are not included in the unit. Boarders living in same dwelling/compound are included in the unit.

Head of unit: ^3.4
The concept of head of household/other unit is used in this survey and is characterised by:

• acknowledged as such by other household/unit members
• recognized owner, or responsible for tenancy of dwelling
• main income earner
• oldest person

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 06/99 to 07/00. These data are collected in the period from 06/99 to 07/00. This survey is conducted 5-yearly. The statistics are published 5-yearly.

SURVEY METHODOLOGY

4. Sample design

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

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

• geographical regions
• rural/urban

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.⁵ The sample size was 7644 households or other units and 19000 interviews. The overall response rate for the survey was 55 percent. Errors/biases were minimized by using substitution for non-response.

Enumeration procedure: Enumeration uses a single round survey design in which each reporting unit is enumerated only once. The sample is divided into 3 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 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:

• wages and salaries
• termination and redundancy payments
• employee social security contributions
• employee income in-kind provided free or subsidized: housing
• employee income in-kind provided free or subsidized: meals
• profit/loss from unincorporated enterprises (mixed income)
• goods produced for own consumption , gross of inputs
• rentals (payment received for produced assets e.g. house) , net 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
• invalidity benefits
• housing allowances
• survivors benefits
• medical reimbursements
• 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:

• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• employee income in-kind provided free or subsidized: car/transportation
• 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
• interest received
• dividends
• royalties
• sickness benefits
• education-related allowances
• 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 in-kind gifts

The following receipts are not collected:

• employer social security contributions , excluded due to measurement problems
• services from owner-occupied dwellings
• services from other consumer durables (net)
• 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

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:

• rentals (payment received for produced assets e.g. house) , net of expenses
• rents (payment received for un-produced assets e.g. land)

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

• old age benefits
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• food subsidies
• 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 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
• 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 other employment-related income:

• 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
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• other pensions

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

• drawing for own use from unincorporated enterprises
• goods produced for own consumption , gross of inputs
• stock consumed from unincorporated enterprise
• interest received
• dividends
• royalties
• regular inter-household transfers received from: regular inheritances or trusts

The following receipts are excluded due to measurement problems:

• employer social security contributions

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

• employee income in-kind provided free or subsidized: meals

The following receipts are collected using the last 12 months as the reference period:

• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• profit/loss from unincorporated enterprises (mixed income)
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , net of expenses
• rents (payment received for un-produced assets e.g. land)
• unemployment benefits
• education-related allowances
• subsidized government dwelling
• food subsidies
• medical reimbursements
• 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

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

• termination and redundancy payments
• employee social security contributions
• retirement pensions from compulsory social security schemes
• old age benefits
• family-related allowances
• invalidity benefits
• survivors benefits
• 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

The reference period for:

• wages and salaries was last 12 months or "last payment and period covered" basis.
• employee income in-kind provided free or subsidized: car/transportation was last week, last month, last 3 months, last 6 months and last 12 months.
• employee income in-kind provided free or subsidized: goods or services produced by employer was last week, last month, last 3 months, last 6 months and last 12 months.
• drawing for own use from unincorporated enterprises was last week, last month and on a "last payment and period covered" basis.
• goods produced for own consumption , gross of input was two weeks
• stock consumed from unincorporated enterprise was two weeks
• royalties
• regular pensions/annuities from schemes to which employee does not contribute was last 12 months and on a "last payment and period covered" basis.
• other pensions was last 12 months and on a "last payment and period covered" basis.
• sickness benefits was last 12 months and on a "last payment and period covered" basis.
• housing allowances was last 12 months and on a "last payment and period covered" basis.
• free government dwelling was last 12 months and on a "last payment and period covered" basis.
• 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
• 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

Income data were collected separately for each person receiving income. Components of income for an individual were collected directly from the individual. Negative values (business losses) were excluded when computing self-employment income, losses coded as zero 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:^6.7

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

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

• own produced non-durable goods
• own-produced durable goods

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

• non-durable goods purchased
• durable goods purchased (except housing)
• mortgage repayments, including interest
• services of owner-occupied housing
• financial services (including fees for financial advice, brokerage fees)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , gross of claims
• life insurance premiums , gross of claims
• 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
• 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 purchased¹⁰
• expenditure abroad

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

• 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 'Non-household expenditure':

• occupational expenditures
• other business-related expenditures

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

• services from durables owned (except housing)
• in-kind goods received from other households
• in-kind services received from other households
• interest payments (excluding mortgage interest payments)

The following types of expenditure items are excluded for other reasons:

• purchase price of owner-occupied housing (second hand goods not uniquely identified)
• major repairs, conversions and extensions to owner-occupied housing (second hand goods not uniquely identified)
• income in-kind receipts of goods (second hand goods not uniquely identified)
• income in-kind receipts of services (second hand goods not uniquely identified)
• own-produced services (second hand goods not uniquely identified)
• social transfers in-kind of goods and services from government and non-profit institutions serving households (second hand goods not uniquely identified)
• investment-related expenditures (e.g. purchase of shares/stocks) (second hand goods not uniquely identified)

Classification: A national classification is used for classifying expenditure and has 10 separate categories at the finest level. The classification is consistent with COICOP at the Class (4 digit) level.

7. Other Data Collection Issues

The following other topics are covered:⁸

• 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: Non-response households (refusals and non-contacts) are substituted.

Non-response is reduced using the following measures:⁹

• more than one repeat visits
• monetary rewards
• other incentives : prize draws for fully co-operating respondents

Reporting errors are reduced using the following measures:

• careful instrument design
• adequate cues or props for prompting
• quality control
• suitable recall periods

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
• field supervisors
• office staff
• following verification only

Extreme values are retained without change. ¹¹ Consumption of own production is included in the estimates, but in-kind receipts are not. Consumption of own production is valued using:¹² 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: No information was provided on samplimg errors.

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

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

• other characteristic of reference person or head of household, social group, livelihood status
• income percentiles, deciles
• principal source of household income
• household size
• structure of household
• other characteristic of household, tenure
• other classification, location urban, rural, farm, regional authority regions

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

• other characteristic of reference person or head of household, social group, livelihood status
• income percentiles, deciles
• principal source of household income
• household size
• structure of household
• other characteristic of household, tenure
• other classification, location urban, rural, farm, regional authority regions

Documentation and Dissemination:
Published survey reports: household Budget Survey 1999/2000 Preliminary results 25/10/01, household Budget Survey1999/2000 Final Results 04/10/02
Published methodological information: included in above

Additional statistics (or special tables on request) are available for public use, free of charge (for academia, research bodies) and with charges (for those seeking data for commercial purposes). 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, free of charge and with charges (charges are only levied on those who seek the data for commercial purposes).¹³