Macedonia, The former Yugoslav Rep. of

Title: Household Budget Survey 2003

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from State Statistical Office of Dame Gruev 4, 1000 Skopje, Republic of Macedonia, phone: 389 2 295 617, fax: 389 2 111 336, e-mail: ajrijac@stat,gov.mk.
Data have been collected by household survey since 1963.

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
• 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

Lesser importance is attached to:

• to study income/expenditure disparities among socio-economic groups
• to study consumer behaviour among socio-economic groups

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

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 temporarily living away from the dwelling are included, if away continuously for less than 6 weeks. 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 not included in the unit.

Head of unit:
The concept of reference person is used in this survey and is characterised by:

• responsible for decisions on main expenditures

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 12/03. This survey is conducted continuously. The statistics are published annually.

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are enumeration area/district, none and household 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 none respectively. Primary Sampling Units (PSU) were selected using probability proportional to size. The sample size was 5040 households or other units. The overall response rate for the survey was 80 percent. Errors/biases were minimized by using an increased sample size.

Enumeration procedure: Enumeration uses a single round survey design in which each reporting unit is enumerated only once. The sample is divided into 4 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 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
• goods produced for own consumption , gross of inputs
• 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)
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• survivors benefits
• medical reimbursements
• other social insurance benefits
• other social assistance benefits
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular cash gifts
• social transfers in kind: others

The following receipts are not collected:

• 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
• 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)
• royalties
• regular pensions/annuities from schemes to which employee does not contribute
• housing allowances
• free government dwelling
• subsidized government dwelling
• food subsidies
• 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
• 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

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 property income:

• 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)

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

• retirement pensions from compulsory social security schemes
• other pensions
• unemployment benefits
• sickness benefits
• invalidity benefits
• medical reimbursements
• other social insurance benefits

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

• old age benefits
• family-related allowances
• education-related allowances
• survivors benefits
• other social assistance benefits
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• social transfers in kind: others

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

• goods produced for own consumption , gross of inputs
• regular inter-household transfers received from: regular cash gifts

The following receipts are collected using the last 3 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
• goods produced for own consumption , gross of inputs
• 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)
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• survivors benefits
• medical reimbursements
• other social insurance benefits
• other social assistance benefits
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular cash gifts
• social transfers in kind: others

Income data were collected as an aggregate for the whole unit. 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 15 days .

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 recall only.

Data for the following expenditure items are collected by referring:

• to expenditures in last 3 months:
  • other items: non-personal consumption expenditures

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
• housing
• other 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
• major repairs, conversions and extensions to owner-occupied housing
• own produced non-durable goods
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , gross of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , gross of winnings
• housing maintenance, minor repairs
• expenditure abroad
• valuables

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

• in-kind goods received from other households

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

• regular cash payments to others outside the household
• non-regular cash payments to others outside the household

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

• mortgage repayments, including interest
• interest payments (excluding mortgage interest payments)
• financial services (including fees for financial advice, brokerage fees)
• investment-related expenditures (e.g. purchase of shares/stocks)

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

• purchase price of owner-occupied housing

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

• income in-kind receipts of goods
• income in-kind receipts of services
• own-produced durable goods
• own-produced services
• services from durables owned (except housing)
• in-kind services received from other households
• social transfers in-kind of goods and services from government and non-profit institutions serving households
• life insurance premiums
• out of pocket health expenditure
• out of pocket education expenditures
• out of pocket transport expenditures
• second hand goods purchased
• compulsory transfers to governments (e.g. contributions to government old age and disability insurance program, taxes)
• occupational expenditures
• other business-related expenditures

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

• own produced non-durable goods
• in-kind goods received from other households

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

• non-durable goods purchased
• durable goods purchased (except housing)
• mortgage repayments, including interest
• services of owner-occupied housing
• 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) , gross of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , gross of winnings
• housing maintenance, minor repairs
• regular cash payments to others outside the household
• non-regular cash payments to others outside the household
• expenditure abroad
• valuables
• investment-related expenditures (e.g. purchase of shares/stocks)

Classification: COICOP is used for classifying expenditure and has 17 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

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
• monetary rewards

Reporting errors are reduced using the following measures:

• careful instrument design
• quality control

DATA PROCESSING, ANALYSIS AND DISSEMINATION

Answers are not pre-coded on data collection forms, but are coded by office staff.

The responses are edited by the following:

• interviewers, data collectors
• office staff

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 in office processing 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: No 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

Sampling errors: Sampling errors are computed for major aggregates and these sampling errors are available on request.

Tabulation and Analysis: The reference period for aggregation and reporting is quarterly and statistics are analysed and tabulated for households only.

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

• income percentiles, deciles
• absolute income groups
• principal source of household income
• other characteristic of household, socio-economic category; agricultural, mixed and non-agricultural

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

• expenditure percentiles
• expenditure classes in monetary terms
• other characteristic of household, socio-economic category; agricultural, mixed and non-agricultural

Documentation and Dissemination:
Published survey reports: household consumption in the Republic of Macedoniain 2001, june, 2002

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