Kosovo (Serbia and Montenegro)

Title: Kosovo Household Budget Survey 2002/2003

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Statistical Office of Kosovo (SOK) of Rr/Str. Zenel Salihu nr 4 Pristina, phone: 00 381 38 23 5111 or 00 381 38 23 5863, fax: 00 381 38 54 48187, e-mail: bujaruka@hotmail.com or bujaruka@yahoo.com.
Data have been collected by household survey since 2002.

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

Lesser importance is attached to:

• for market research purposes

Geographic coverage: National without any specific geographic areas excluded.

Population coverage:¹
The following types of household are included in the data collection:

• one person private households
• private households with more than one person
• nomadic and other households difficult to reach: if person lives there in the sampling area

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

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
  • sharing a common budget for (at least) food and housing expenditures
  • pooling their income to some extent

Unit members: Usual residents are always 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: ¹
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
• responsible for financial maintenance of household/unit
• main income earner
• responsible for decisions on main expenditures
• oldest person
• reference person is flexible and depends on purpose of analysis

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 06/02 to 05/03. These data are collected in the period from 06/02 to 05/03. This survey is conducted continuously. The statistics are published annually. ²

SURVEY METHODOLOGY

4. Sample design

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

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

• geographical regions
• rural/urban
• ethnicity

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 and Ultimate Sampling Units (USU) were selected using systematic random samppling.. The sample size was 2400 households or other units. ³ The overall response rate for the survey was 80 percent.⁴ Errors/biases were minimized by using an updated sampling frame, an increased sample size.

Enumeration procedure: ^5,6 Enumeration uses a single round survey design in which each reporting unit is enumerated only once. The sample is not divided into representative sub-samples. The survey uses 2 sub-samples at the same time and drops 1 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 a reporting household/unit drops out from the panel, it is replaced. If changes occur in composition of the reporting household/unit during the lifetime of the panel, then it is abandonned. 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 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 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
• 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: goods or services produced by employer
• employee income in-kind provided free or subsidized: other goods or services
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption
• services produced for own consumption
• goods produced for barter
• services produced for barter
• stock consumed from unincorporated enterprise
• services from owner-occupied dwellings
• services from other consumer durables (net)
• 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
• 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
• 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

The following receipts are not collected:

• social transfers in kind: medical 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: goods or services produced by employer
• 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)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption
• services produced for own consumption
• goods produced for barter
• services produced for barter
• stock consumed from unincorporated enterprise

The following receipts are classified as property income:

• services from owner-occupied dwellings
• services from other consumer durables (net)
• interest received
• dividends
• 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 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
• 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 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 month 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
• 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
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption
• services produced for own consumption
• goods produced for barter
• services produced for barter
• stock consumed from unincorporated enterprise
• services from owner-occupied dwellings
• services from other consumer durables (net)
• 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
• 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
• 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 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

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, also receipts and costs are recorded separately during the month.

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 one month:
  • housing

• to expenditures in last 12 months:
  • other durable goods

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':

• non-durable goods purchased
• durable goods purchased (except housing)
• services of owner-occupied housing
• own produced non-durable goods
• own-produced durable goods
• own-produced services
• 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)
• 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
• second hand goods purchased
• expenditure abroad

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

• 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

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

• mortgage repayments, including interest
• 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
• 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':

• other business-related expenditures

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

• gambling expenditure
• investment-related expenditures (e.g. purchase of shares/stocks)

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

• purchase price of owner-occupied housing (imputed rent used)
• major repairs, conversions and extensions to owner-occupied housing (imputed rent used)
• services from durables owned (except housing)
• life insurance premiums
• housing maintenance, minor repairs (imputed rent used)
• occupational expenditures (not private)

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

• non-durable goods purchased
• durable goods purchased (except housing)
• services of owner-occupied 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
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• compulsory transfers to governments (e.g. contributions to government old age and disability insurance program, taxes)
• other business-related expenditures

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

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

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

• mortgage repayments, including interest
• 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)
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure
• out of pocket health expenditure , gross of claims
• out of pocket education expenditures , gross of refunds
• out of pocket transport expenditures , gross of refunds
• regular cash payments to others outside the household
• non-regular cash payments to others outside the household
• expenditure abroad

Classification: COICOP is used for classifying expenditure and has 318 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: Non-response households (refusals and non-contacts) are substituted.

Non-response is reduced using the following measures:

• more than one repeat visits
• monetary rewards
• other measures : interviewer training

Reporting errors are reduced using the following measures:

• careful instrument design
• 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
• 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:⁷ the respondent's estimate. Consumption of own production is valued using:⁷ 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.⁸ (respondent provides an estimate )

Treatment of selected groups/values in analysis: No households/units are excluded from analysis because of incomplete response. Missing values are imputed only on some occasions when obvious mistake. 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

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. ⁹

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, ethnicity, birthplace, education level.
• income percentiles
• absolute income groups
• principal source of household income
• expenditure percentiles
• expenditure classes in monetary terms
• household size
• structure of household
• other characteristic of household, administrative regions, urban/rural, working volume, main source of income
• other classification

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, ethnicity, birthplace, education level.
• income percentiles
• absolute income groups
• principal source of household income
• expenditure percentiles
• expenditure classes in monetary terms
• household size
• structure of household
• other characteristic of household, administrative regions, urban/rural, working volume, main source of income
• other classification

Documentation and Dissemination:
Published survey reports: Preliminary report on first half year expected, March 2003

Additional statistics (or special tables on request) are available for public use, free of charge. Separate tables are published for households with wages/salaries as main source of income. Files of unidentifiable unit data are not available (or available on request) for public use.