Turkey

Title: Household Income and Consumption Expenditures Survey 2002

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from State Institute of Statistics of Necatibey Cad.No:114 06100 Bakanliklar Ankara Turkey, phone: 90 312 41 76440, fax: 90 312 41 85691, e-mail: murat.karakas@die.gov.tr.
Data have been collected by household survey since 1987.

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 study the general structure of household incomes/expenditures
• 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
• to study living conditions of household

Lesser importance is attached to:

• to estimate household expenditure for national accounts
• to study income/expenditure patterns of disadvantaged groups, including pensioner households, single parent households, etc

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
• armed forces residing in private housing within military base
• 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)
• diplomatic households in the country
• households of other foreigners in the country

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 months. Visitors (not usual residents) temporarily living in the dwelling are included, if staying continuously for more than 6 months. 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 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
• 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 01/02 to 12/02. These data are collected in the period from 01/02 to 12/02. This survey is conducted annually. The statistics are published annually.

SURVEY METHODOLOGY

4. Sample design

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

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

• geographical regions
• rural/urban
• population groups

Households/Consumption Unit, Income Unit, Family Unit were stratified using the following criteria:¹

• social class of the head

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were the list of Census enumeration areas and a separate listing exercise respectively. Primary Sampling Units (PSU) were selected using probability proportional to size. The sample size was 800 households or other units and 9 interviews. The overall response rate for the survey was 20 percent. Errors/biases were minimized by using an updated sampling frame.

Enumeration procedure: Enumeration uses a single round survey design in which each reporting unit is enumerated only once. The sample is divided into 12 representative sub-samples. No action is taken to select a smaller set of reporting units for more detailed questioning.

The State Institute of Statistics (SIS) changed the name of the survey to "Household Budget Survey" in 2003. SIS has also changed the survey design and implemented the new survey to 25 920 households during 2003. The new survey will allow the SIS to estima te consumption expenditures for regional breakdown in NUTS 2 level. SIS will continue yearly small size surveys from the beginning of 2004. To obtain estimates on income distribution and pove rty SIS is also planning to conduct a new survey called "Stati stics on Income and Living Conditions" starting in 2004..

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 includes receipts that are not currently available to the unit.

The following receipts are collected separately:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• 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 ( kindergarden,discounts in electricity,gas,telepho-ne,water etc...)
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption , net of inputs
• stock consumed from unincorporated enterprise
• services from owner-occupied dwellings
• 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)
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• regular inter-household transfers received from: free dwelling
• regular inter-household transfers received from: subsidized dwelling

The following receipts are collected but not separately:

• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• goods produced for barter , net of inputs
• services produced for barter , net of inputs
• royalties
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors 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 free services

The following receipts are not collected:

• employer social security contributions
• employee social security contributions
• services produced for own consumption
• services from other consumer durables (net)
• regular pensions/annuities from schemes to which employee does not contribute
• free government dwelling
• subsidized government dwelling
• food subsidies
• medical reimbursements
• other social insurance benefits
• 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 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 ( kindergarden,discounts in electricity,gas,telepho-ne,water etc...)

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 , net of inputs
• services produced for own consumption
• goods produced for barter , net of inputs)
• services produced for barter , net of inputs
• stock consumed from unincorporated enterprise
• services from owner-occupied dwellings
• royalties

The following receipts are classified as property 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)

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

• 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
• 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: 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 other income but not employment-related:

• services from other consumer durables (net)

The following receipts are collected using the last 12 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
• 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 ( kindergarden,discounts in electricity,gas,telepho-ne,water etc...)
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption , net of inputs
• goods produced for barter , net of inputs
• services produced for barter , net of inputs
• stock consumed from unincorporated enterprise
• services from owner-occupied dwellings
• 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)
• royalties
• 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
• 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: 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 the individual. ² Negative values (business losses) were included when computing self-employment income, it is given value code '9' for negative 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 last week:
  • 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 'Actual Household consumption':

• 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
• own produced non-durable goods
• own-produced 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
• 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)
• housing maintenance, minor repairs
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• expenditure abroad
• valuables

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

• mortgage repayments, including interest
• interest payments (excluding mortgage interest payments)
• regular cash payments to others outside the household
• non-regular cash payments 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 'Investment/liability expenditure':

• purchase price of owner-occupied housing
• major repairs, conversions and extensions to owner-occupied housing
• life insurance premiums
• gambling expenditure
• investment-related expenditures (e.g. purchase of shares/stocks)

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

• own-produced services
• services from durables owned (except housing)
• out of pocket health expenditure
• out of pocket education expenditures
• out of pocket transport expenditures
• 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
• 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
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• expenditure abroad
• valuables

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

• services of owner-occupied housing
• own produced non-durable goods
• own-produced durable goods
• financial services (including fees for financial advice, brokerage fees)

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

• mortgage repayments, including interest
• major repairs, conversions and extensions to owner-occupied housing
• interest payments (excluding mortgage interest payments)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical)
• life insurance premiums
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure
• regular cash payments to others outside the household
• non-regular cash payments to others outside the household
• 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 127 separate categories at the finest level.

7. Other Data Collection Issues

The following other topics are covered:

• demographic characteristics
• employment status of members
• occupation of members
• ownership of selected durable goods
• housing characteristics
• savings
• indebtedness

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:³

• more than one repeat visits

Reporting errors are reduced using the following measures:⁴

• careful instrument design
• adequate cues or props for prompting

DATA PROCESSING, ANALYSIS AND DISSEMINATION

Answers are not pre-coded on data collection forms, but are coded by the interviewers (data collectors). ⁵

The responses are edited by the following:

• field supervisors
• 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:⁶ imputed by field staff using cost prices for in-kind receipts

Treatment of owner-occupied housing: Values of owner-occupied housing are included in the total income/expenditure estimates and are valued using the current market value.

The following information is used in this valuation:

• recent sales data from local real estate agents

Treatment of selected groups/values in analysis: Some households/units are excluded from analysis because of incomplete response. Missing values are imputed only on some occasions only when the relevant questionnaire contains adequate information. 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

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

Tabulation and Analysis: Statistics are presented showing averages per year and statistics are analysed and tabulated for households and for individuals separately. ⁷

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, education level and employment status
• income percentiles, quintiles and deciles
• absolute income groups
• expenditure percentiles
• household size
• other characteristic of household, ownership status of dwelling, number of employed household members
• other classification, socio-economic characteristics of household

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, education level and employment status
• income percentiles, quintiles and deciles
• absolute income groups
• expenditure percentiles
• household size
• other characteristic of household, ownership status of dwelling, number of employed household members
• other classification, socio-economic characteristics of household

Documentation and Dissemination:

Additional statistics (or special tables on request) are available for public use, with charges. Separate tables are published for urban and rural areas. Files of unidentifiable unit data are available (or available on request) for public use, with charges.