/ EUROPEAN COMMISSION
EUROSTAT
Directorate E: Social and regional statistics and geographical information system
Unit E-2: Living conditions /

Doc. E2/HBS/127/01

Working Group

HOUSEHOLD BUDGET SURVEYS

01-02 OCTOBER 2001

Eurostat-Luxembourg, Bech Building – Room Ampère

Point III/B3of the agenda

Harmonised Variables

Draft

  • Tables showing country HBS practises will be added to the text.
  • Some variables of housing, amenities and durables have been excluded, but the list is still to be agreed on. Certain variables will be covered in the Statistics on Income and Living Conditions (SILC) from 2003 and a proposal for the variable list will be discussed at a task Force meeting in September. The aim for the HBS is to cover other areas that are demanded by the policy makers. We also need to take into account the contents of the HBS in MS
  • The durables that usually give a 100% are not included anymore.

5. Main units and variables : The harmonisation program

5.1. Context

Harmonisation of the classifications and coding system of essential variables is fundamental for a comparative analysis of the Household Budget surveys at European Union level. The advantages of such a harmonisation of the surveys are undeniable:

  • A harmonisation would make it possible to improve the reliability of data as well as the speed of access to it, in particular for studies requiring access to individual information or for the production of comparative tables across Europe and different surveys.
  • For the Member States, the use of internationally recognised classifications can only have positive consequences. This does not confine the Member States to following a rigid structure since the possibility of having additional, more detailed levels, remains open.
  • For Eurostat, management of the Community database would be facilitated, since it would eliminate recodification of national data in Community format, which is long and requires the development of conversion tables, which are not always very satisfactory in terms of quality.

Since the London Workshop November 1996 harmonisation has been put into the broader perspective of social statistics. The Council Decision of 22 December 1998 on the Community Statistical Programme 1998 to 2002 (1999/126/EC) stating that ‘the structuring/integration of household surveys and similarly between surveys and registers, will be pursued with a view to rationalising resources and improving comparability of output’ (p. 23 concerning social statistics), provided a good policy basis. Though, the harmonisation program has not yet been officially approved by the Member States.

As part of the system of social statistics, Household Budget Surveys are automatically integrated in the harmonisation program for social statistics. The recommendations of the harmonisation program therefore also apply to the HBSs. It is recommended to the EU Member States (and EFTA countries) to follow the guidelines for harmonisationfor the HBS [1], and in particular the detailed community variable list with the specific codes (see Annex which will be added later). Under the heading of each main variable, its definition is mentioned and the aggregate classification of the variable is shown and explained.

5.2. Household typology

5.2.1. Core units

Private household

Different criteria of what constitutes a private household are used in different countries: [2]

(1)Co-residence (household dwelling criterion);

(2)Sharing of expenditures including joint provision of essentials of living (housekeeping criterion);

(3)Pooling of income and resources;

(4)The existence of family or emotional ties.

They are used in combination or independently.

Recommendation

In line with the guidelines for the Community program on population censuses, Eurostat recommends that the definition of the household for the purpose of HBSs is based on the first two criteria shown above; ‘co-residence’ and ‘housekeeping’. As regards the distinction between the two criteria, the guidelines for the Community programme on population censuses make mention of the following: ‘In the European Union context, the use of one concept or the other does not lead to greatly differing household structures. Moreover, countries which use the ‘housekeeping unit’ concept are always able to aggregate their results according to the more simple ‘household dwelling’ concept, while the contrary is often impossible. So, for the priority statistical tables, it is recommended that countries use the ‘household-dwelling’ definition of private households.’[3] For the HBSs, it should, however, be clear how countries treat specific groups such as resident employees and lodgers as well as long term absentees (students or hospitalised persons); the inclusion or not of such groups will have some influence on the composition of households and thus on international comparability.

According to the household dwelling criterion, a private household is defined as: the aggregate number of persons occupying a housing unit.A housing unit is defined as: the principal usual residence of at least one person, it is separate in the sense that persons living there can isolate themselves from other persons, it is independent in the sense that it can be accessed without passing through anybody else’s accommodation.[4] A person’s place of usual residence should be that at which (s)he spends most of his/her daily night rest.

5.2.2. Main background variables

Household relationship

Relationship refers to relationship between the members of a household, (non-family relationship or what kind of family). There is no agreed international recommendation on household relationship to be followed. Within Eurostat there are two different ways of registration of household relationship. One by filling in a household matrix and thereby specifying all relationships (as done in the ECHP) and the other via defining a reference person as in the LFS. When the data is used for analyses of household composition and structure, the matrix approach is recommended. The advantage of the matrix approach is that all relationships between household members are identified, and that there is no need for identifying a reference person for data collection purposes. Thus, given that all the information is available, the reference person can be chosen according to analytical needs. This is the ideal way when the focus is on analysis of households/household information. The Membership matrix contains the following codes:

Classification:

1. Spouse/partner/cohabitant

2. Own child

3. Step/adopted/fostered child

4. Sibling (both parents same)

5. Step/adopted/foster sibling

6. Grand child (including step/adopted foster)

7. Son/daughter-in-law
(spouse partner/cohabitant of 2 or 3)

8. Other relative

9. Not related

10. Own parent

11. Step/adopted/foster parent, guardian

12. Grand parent
(including step/adopted/foster)

13. Parent-in-law
(including step/adopted/foster)

If relationship is defined via the reference person, not all relationships within a household can necessarily be reconstituted. Eurostat does not doubt the necessity of identifying the reference person, since the reference person is often used to classify the sample households for presentation of the results by social group, occupation and employment status, income, sex and age etc.

Some Member States feel that there should be a harmonised way to select the reference person. As the reference person as such has no role as a harmonised variable, Eurostat will prefer not to give any suggestion for the moment being. Some countries use as reference person the oldest person in the household, others the householder, or when more than one, the householder with the highest income. Other alternatives, some of them based on self-assessment by the household, are also in use.

Demographic

Sex

Classification

a. man;

b. woman.

Age

Recommendation

It is recommended to collect information on date of birth. Collecting information on the date of birth has the advantage of permitting the tabulation of data in two ways - by year of birth and by completed years of age.[5]

Legal marital status

Legal marital status is defined as the conjugal status of each individual in relation to the marriage laws of the country (i.e. de jure status). Information on this status should be collected for persons aged 15 or more.[6] The following classification is proposed:

Classification:

a. Single (i.e. never married);

b. Married;

c. Widowed (and not remarried);

d. Divorced (and not remarried).

Some countries (i.e. the Nordic, the Netherlands, France) have a legal framework for registering partnerships (in most countries only same-sex partnership). Such information has also to be treated in a harmonised way and it is proposed to treat them as married and classify them under group b.

Living arrangement

In the Census recommendations this variable is referred to as de facto marital status. It definesthe marital status of each individual in terms of his or her actual living arrangements. The following classification is proposed:

Classification:

a. Living with a legal spouse or registered partner;

b. Living with a consensual partner;

c. Not living with a partner (legal or consensual).

Education

Educational attainment of a person is the highest level of an educational programme the person has successfully completed and the study field of this programme. The ISCED 1997 is the standard classification on educational attainment at the EU level.

Classification:

a. Primary or lower secondary education=ISCED-97 level 0, 1 and 2

b. Upper secondary or post-secondary education=ISCED-97, level 3 and 4

c. Tertiary education=ISCED-97, level 5 and 6

Current education and training activity

For classificatory purposes, e.g. to derive the socio-economic class it is important to know whether a person currently is in education or not. The same classification as for educational attainment is advised.

Labour market attachment

Labour status

The classification of labour status distinguishes people as being part of the labour force (employed or unemployed) or not:

a. In labour force;

a.1 Employed persons;

a.2 Unemployed persons;

b. Not in labour force.

Employed people (1982 ILO definition[7]):

All persons above a specified age who during a specified brief period ... were at work, i.e., who performed some work for wage or salary, ... for profit or family gain ... or had a job ... or an enterprise but were not at work.

Unemployed people (1982 ILO definition):

All persons above a specified age who during the reference period were (i) without/work, (ii) currently available for work and (iii) seeking work, i.e. had taken specific steps to seek paid employment or self-employment.

Main activity status

The LFS classification is proposed to be used for harmonisation purposes[8]:

a.Employed. (Carries out a job or a profession, including unpaid work for a family business or holding, including an apprenticeship or paid traineeship, etc.);

b. Unemployed;

c.Pupil, student, further training, unpaid work experience;

d.In retirement or early retirement or has given up business;

e.Permanently disabled;

f.In compulsory military service;

g.Fulfilling domestic tasks;

h.Other inactive person;

i.Not applicable (child less than 15 years)

There is no international recommendation for the definition of main activity. The census concepts, classification by activity status, (current and usual) and main source of livelihood, are close to the concept of main activity status. The “main source of livelihood” is the principal source from which the consumption of each person was financed during a specified 12 months period. It is recommended to give preference to a long reference period such as the preceding 12 months or calendar year. The classification is based on each person’s selfperception regarding his/her activity status; for instance, it identifies students with small jobs who are more closely associated with other students than with other employed persons.

Status in employment

The classification by status in employment is related to the main job held by the person:

a. Employees;

b. Self-employed.

Contributing family workers are grouped as self-employed.

Employees are distinguished from the self-employed on the basis of the economic risk. Employees hold employment contracts, which give them a basic remuneration, which is not directly dependent upon the revenue of the firm for which they work. The tools, equipment and premises they use are owned by others and they may work according to guidelines set by the owner. The remuneration of the jobs of the self-employed depends upon the profits derived from the goods and services produced.

Part-time versus full-time

The distinction

a. Full-time

b. Part-time

is based on hours usually worked per week. Part-time work is defined as regular work in which working time is substantially less than normal. The Eurostat guidelines for the Census 2001 define part-time as less than 90% of normal work time in the occupational group of the person.[9]

Occupation

The ISCO-88 (COM) is the standard occupational classification used at the EU level. The basis for the classification is the job and the skills. A job is defined as the set of tasks and duties to be performed. Skills are the abilities to carry out the tasks and duties of a job. Skills consist of two dimensions: skill level and domain specialisation. The skill level is related to the level of educational attainment.

The ISCO-88 (COM) is based on ISCO-88: International Standard Classification of Occupations’ published by ILO (Geneva 1990).[10]

Classification:

1.Legislators, senior officials and managers;

2.Professionals;

3. Technicians and associate professionals;

4.Clerks;

5.Service workers and shop and market sales workers;

6. Skilled agricultural and fishery workers;

7.Craft and related trades workers;

8.Plant and machine operators and assemblers;

9.Elementary occupations;

0.Armed forces.

Economic activity

The NACE rev. 1, Statistical Classification of Economic Activities, is the standard classification used at national and EU level for both economic and social statistics. Economic activities are characterised by the input of goods or services, a production process and the output of products.

Most of the household surveys code NACE by 2-digit level. In social statistics an aggregation of the highest level of NACE rev.1, the 17 sections is needed:

Classification:

  1. Agriculture, hunting and forestry;
  2. Fishing;
  3. Mining and quarrying;
  4. Manufacturing;
  5. Electricity, gas and water supply;
  6. Construction;
  7. Wholesale and retail trade; and repairs;
  8. Hotels and restaurants;
  9. Transport, storage and communication;
  10. Financial intermediation;
  11. Real estate, renting and business activities;
  12. Public administration and defence; compulsory social security;
  13. Education;
  14. Health and social work;
  15. Other community, social and personal service activities;
  16. Private households with employed persons;
  17. Extra-territorial organisations and bodies.

An aggregation into three groups is also possible:

a.Agriculture (A, B);

b.Industry (C,D,E,F);

c.Services (G - Q.

Income

Main income source

or main source of livelihood consists of 4 categories. The following classification is recommended (UNECE recommendations for the 2000 census):

a. income from employment;

b. retirement pension;

c. other transfer income (for example, sickness and disability benefits, unemployment

benefits, social welfare assistance…);

d. other sources of livelihood (for example, income from property or capital…).

Income

The main source for income information at the European level is the ECHP, and this role will be taken over by the SILC (‘Survey of Income and Living Conditions’) instrument in 2003. As a consequence, the requirements for the HBS are limited. For Eurostat it will suffice if the Member States provide only the total of net disposable income of people currently present in the household .

Whereas Eurostat accepts not to have detailed data on the components of disposable income, it at the same time recommends the Member States the list of the more detailed income definitions as proposed by the Canberra Group to be adopted as the conceptual framework for income.[11] Eurostat recognises that not all of it can be implemented for practical purposes. The reference should, however, be the ambition, as it satisfies the minimum requirements for consistency and comparability. Table .. shows the list. Annex (only in English)… provides more detailed information as the different categories are described in detail.

Housing

Tenure status of household

This concept refers to the arrangement under which a private household occupies their housing unit. It is recommended to classify private households according to the following tenure status:

Classification:

a.Households of which a member of the household is the owner of the housing unit;

b.Households of which a member is a tenant of the housing unit;

c.Households occupying all or part of a housing unit under some other form of

tenure.

Eurostat recommends that members of different types of housing co-operatives should be classified in a.

Number of rooms.

Recommendation

A room is defined as a space of a housing unit of at least 4 square meters as normal bedrooms, dining rooms, living rooms, habitable cellars and attics, servants' rooms, kitchens and other separate spaces used or intended for habitation all count as rooms. A kitchenette (i.e. a kitchen of less than 4 m2), corridors, verandas, utility rooms (e.g. boiler rooms, laundry rooms) and lobbies do not count as rooms, nor do bathrooms and toilets (even if they are more than 4 m2).

Durables

The recommended list of durables (still to be discussed) which household do or do not possess contains three items:

Classification

Ownership of a:

Car (a. yes/b. no);

Telephone (fixed and/or mobile) (a. yes/b. no)

PC (a. yes/b. no)

Region

The European system for region statistics is described in the Eurostat publication ‘Regions Nomenclature of territorial units for statistics – NUTS 1999 edition’. There are five levels in the classification, NUTS 1 to 5 (at level 5 the classification comprises 98.433 communes or their equivalent, whereas level 1 contains 78 regions). Due to limited sample sizes, most household surveys can only provide data on NUTS level 1 or 2.

The NUTS favours an institutional breakdown for practical reasons to do with data availability and the implementation of regional policies. This means that NUTS is based primarily on institutional divisions currently in force in the Member States (normative criteria).

Regional information can, in Eurostat, be found in the database Regio’. The Labour Force Survey, the European Community Household and the Household Budget Surveys specify NUTS level 2. No regional information as such is though published for the latter two sources, while Labour Force Survey results are published on level 1 or 2 depending on country. Guidelines on which regional level (e.g. level 1 or 2) to use in accordance with administrative divisions can be found in the above mentioned publication.