Northern Mariana Islands

Title: Household Income and Expenditure Survey

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Dept.of Commerce, Central Statistics Division of Caller Box 10007, Capital Hill, Saipan, MP 96950, phone: 670 664 3023/39, fax: 670 664 3066, e-mail: csd@itecnmi.com.
Data have been collected by household survey since 1997.

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 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
• 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

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

• single structure - detached housing unit
• single unit in a structure containing more than one housing unit
• multiple structures within a compound (e.g. huts)
• 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

Data are recorded for the family unit which is characterised by:

• two or more people:
  • living in the same household
  • sharing a single dwelling unit or compound
  • related:
    • by blood
    • by marriage
    • by adoption
    • by consensual union
  • sharing meals
  • sharing a common budget for (at least) food and housing expenditures
  • pooling their income to some extent

Data are recorded for the income unit which is characterised by:

• two or more people:
  • living in the same household
  • sharing a single dwelling or compound
  • pooling their income to some extent

Data are recorded for the consumer unit, expenditure unit or spending unit which is characterised by:

• two or more people:
  • living in the same household
  • sharing a single dwelling or compound
  • sharing meals
  • sharing a common budget for (at least) food and housing expenditures

Unit members: Usual residents temporarily living away from the dwelling are included, if away continuously for less than 1 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 included in the unit. Boarders living in same dwelling/compound are 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:

• recognized owner, or responsible for tenancy of dwelling
• responsible for financial maintenance of household/unit
• main income earner
• 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 01/97 to 12/97. These data are collected in the period from 06/98 to 12/98. This survey is conducted irregularly/occasionally. The statistics are published annually.

SURVEY METHODOLOGY

4. Sample design

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

Stratification:

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were none and none respectively. Primary Sampling Units (PSU) were selected using simple random sampling. The sample size was 1300 households or other units and 1300 interviews. The overall response rate for the survey was 98 percent. Errors/biases were minimized by using an updated sampling frame.

Enumeration procedure: Enumeration uses neither a single round survey design nor a panel design. 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 separately:

• cash bonuses and gratuities
• commissions and tips
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption
• services produced for own consumption
• interest received
• dividends
• rentals (payment received for produced assets e.g. house)
• rents (payment received for un-produced assets e.g. land)
• royalties
• retirement pensions from compulsory social security schemes
• other pensions
• family-related allowances
• 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 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 , excluded for other reasons
• 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 collected but not separately:

• wages and salaries
• remuneration for time not worked, e.g. leave pay

The following receipts are not collected:

• termination and redundancy payments , excluded for other reasons
• employer social security contributions , excluded for other reasons
• employee social security contributions , excluded for other reasons
• employee income in-kind provided free or subsidized: housing , excluded for other reasons
• employee income in-kind provided free or subsidized: meals , excluded for other reasons
• employee income in-kind provided free or subsidized: car/transportation , excluded for other reasons
• employee income in-kind provided free or subsidized: goods or services produced by employer , excluded for other reasons
• employee income in-kind provided free or subsidized: other goods or services , excluded for other reasons
• goods produced for barter , excluded for other reasons
• services produced for barter , excluded for other reasons
• stock consumed from unincorporated enterprise , excluded for other reasons
• services from owner-occupied dwellings , excluded for other reasons
• services from other consumer durables (net) , excluded for other reasons
• regular pensions/annuities from schemes to which employee does not contribute , excluded for other reasons
• old age benefits , excluded for other reasons
• unemployment benefits , excluded for other reasons
• sickness benefits , excluded for other reasons
• regular support received from non-profit institutions serving households: cash, e.g. scholarships , excluded for other reasons
• regular support received from non-profit institutions serving households: goods and services , excluded for other reasons
• regular support received from non-profit institutions serving households: free dwelling , excluded for other reasons
• regular support received from non-profit institutions serving households: subsidized dwelling , excluded for other reasons
• social transfers in kind: others , excluded for other reasons

The following receipts are classified as income from paid employment:

• wages and salaries
• remuneration for time not worked, e.g. leave pay

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

• drawing for own use from unincorporated enterprises

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

• cash bonuses and gratuities

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

• commissions and tips
• profit/loss from unincorporated enterprises (mixed income)
• goods produced for own consumption
• services produced for own consumption
• interest received
• dividends
• rentals (payment received for produced assets e.g. house)
• rents (payment received for un-produced assets e.g. land)
• royalties
• retirement pensions from compulsory social security schemes
• other pensions
• family-related allowances
• 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 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
• 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 excluded for other reasons:

• 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
• goods produced for barter
• services produced for barter
• stock consumed from unincorporated enterprise
• services from owner-occupied dwellings
• services from other consumer durables (net)
• regular pensions/annuities from schemes to which employee does not contribute
• old age benefits
• unemployment benefits
• sickness 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: regular free services
• social transfers in kind: others

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
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption
• services produced for own consumption
• interest received
• dividends
• rentals (payment received for produced assets e.g. house)
• rents (payment received for un-produced assets e.g. land)
• royalties
• retirement pensions from compulsory social security schemes
• other pensions
• family-related allowances
• 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 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
• 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

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 included when computing self-employment 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:

• to expenditures in last 12 months:
  • housing
  • 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)
• purchase price of owner-occupied housing
• services of owner-occupied housing
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• 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

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

• mortgage repayments, including interest
• major repairs, conversions and extensions to owner-occupied housing
• non-life insurance premiums (e.g. vehicle, housing, other property, medical)
• life insurance premiums
• out of pocket health expenditure
• out of pocket transport expenditures
• housing maintenance, minor repairs
• non-regular cash payments to others outside the household
• 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)

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

• out of pocket education expenditures

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

• occupational expenditures
• other business-related expenditures

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

• income in-kind receipts of goods
• income in-kind receipts of services
• own produced non-durable goods
• own-produced durable goods
• own-produced services
• services from durables owned (except housing)
• in-kind goods received from other households
• in-kind services received from other households
• gambling expenditure
• valuables
• 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)

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

• social transfers in-kind of goods and services from government and non-profit institutions serving households

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

• durable goods purchased (except housing)
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• out of pocket health expenditure
• out of pocket education expenditures

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

• non-durable goods purchased
• purchase price of owner-occupied housing
• services of owner-occupied housing
• major repairs, conversions and extensions to owner-occupied housing
• financial services (including fees for financial advice, brokerage fees)
• out of pocket transport expenditures
• 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
• occupational expenditures
• other business-related expenditures

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

• mortgage repayments, including interest
• interest payments (excluding mortgage interest payments)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical)
• life insurance premiums

Classification: COICOP is used for classifying expenditure and has an unspecified number of 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
• 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.

Reporting errors are reduced using the following measures:

• careful instrument design
• quality control
• verification

DATA PROCESSING, ANALYSIS AND DISSEMINATION

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

Extreme values are amended. In-kind receipts are included in the estimates, but consumption of own production is not. In-kind receipts are valued using: 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

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

Sampling errors: Sampling errors are not computed.

Tabulation and Analysis:

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, citizenship, and educational attainment
• principal source of household income
• expenditure percentiles
• household size
• structure of household

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, citizenship, and educational attainment
• principal source of household income
• expenditure percentiles
• household size
• structure of household

Documentation and Dissemination:

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.