Skip to menu Skip to content

Statistical Yearbook of the Czech Republic

Income expenditure and consumption of the population - Methodology

Contents

Tables 9-1 to 9-6. Composition of samples of reporting households and the structure of the money income and expenditure of households

      Listed in the tables are data from the sample survey of household budgets. The household - i.e. the number of persons living together and on common budget - constitutes both the reporting and sample unit. As a rule, the core of the households is a family but it can also be an individual. Households (respondents) included in household budget statistics are now sampled by the method of purposive quota sampling.

      There are two types of samples used:

      1. Basic reporting sample, which ensured representative results for social groups in the Czech Republic. The frequency of individual groups of households according to sampling characteristics is determined with reference to results from the sample survey on the money income of the population (microcensus). The following sampling characteristics were used to select the households:

      a) Social group of households, which is determined according to which social group the head of household belongs to, irrespective of whether or not another economically active member of the household belongs to the same or different social group. Where the household is constituted by a two-parent family (husband, wife, other members), the husband is always the head of household, whereas an economically active parent is the head of household in lone-parent families. An economically inactive parent can become the head of household provided that the children are also economically inactive. In other cases an economically active child is the head of household. In non-family households, the head of household is always the person with the highest income. Where a household embraces two or more families, the position of persons in the head of individual families is taken account of: preference is always given to an economically active person and, with the same degree of economic activity, two-parent family is preferred to lone-parent one. If these criteria cannot be applied, the person with the highest income is set as the head of household.

      Measured were the social groups of:

        • employees: persons having a contract of employment, who do manual work in the area of production, transport, services, etc. (manual workers) or intellectual work at all levels such as managerial, conceptual and scientific, operational, technical, services (other employees);
        • farmers: persons who are engaged in agricultural production and are either members of and work for an agricultural cooperative or are engaged in agricultural production in enterprises of any kind or are self-employed in agriculture production;
        • self-employed persons: persons who have no contract of employment and are in business outside agriculture, work freelance or work for professional fees;
        • pensioners: pension recipients who do not work at all or whose economic activity is restricted (their annual income from gainful activity is not allowed to exceed CZK 12 000; this restriction applies to other members of the household, too).
      b) Net money income per person: it characterizes the income level of households not only for the purpose of sampling but also for that of classifying these households by income level when data are processed; the net income does not include income tax, health and social insurance reimbursements, loans, credits received and savings withdrawn;

      c) Number of unprovided-for (dependent) children in households of economically active persons or the number and sex of members in households of economically inactive pensioners.

      2. Supplementary sample, which comprised families with children, living just at subsistence level. An appropriate number of these families were represented in the basic sample, too. For separate processing, however, they would be too low in number.

      Methodology and definitions of key indicators

      Number of equivalencies refers to the composition of household derived from weights of consumption of individual members in the household. The weights are defined by the OECD scale as follows: first adult in the household = 1.0, every other adult (over 13 of age) = 0.7, every child (aged 13 or less) = 0.5.

      Money income, total is gross money income. It includes income tax and social and health insurance contributions and excludes loans and deposits withdrawn.
      For households of the self-employed, the money income includes amounts transferred by these persons from profits of their businesses to satisfy the needs of their households and members of the households. It is comparable to the income of the households of other social groups at the level of the so-called net income only (excluding income tax and contributions to health and social insurance schemes). For most of the self-employed, tax burden of their households is not fully covered, because contributions to health and social insurance schemes are part of their bookkeeping and are not reported in household budgets statistics. Income tax is included in household budgets statistics only if it is paid from funds of the household.

      Income from work refers to incomes from work activities carried out in the framework of employment, service and membership relationships or incomes from business or any other independent gainful activities; such incomes are referred to as incomes from main activity, if the activity is the main source of the worker's income.

      To ensure international comparability of the statistical indicators, the items of money expenditure relating to 1999 and subsequent years were re-arranged to comply with the national version (CZ-COICOP) of the international Classification of Individual Consumption by Purpose, COICOP (see the statistical classifications in force listed in the introduction of this book), which is obligatory for all statistical surveys. According to this classification, the individual (final) consumption includes neither expenditure on the purchase, building and reconstruction of houses and dwellings nor expenditure on kitchen gardens and domestic animals (not pets), which is why these were placed under a separate item not included in final consumption.

      The application of this classification altered the contents of some expenditure items and, therefore, the results are not fully comparable with figures released before 1999. The groups of expenditure items regarding 1995 and to some extent 1995 were converted to comply with the above-mentioned classification so that trends in the basic results of household budgets statistics can be compared over a prolonged period of time.

      Money expenditure, total includes neither deposits nor repayments of loans.

      The individual expenditure items are the following:

        • housing, water, electricity, gas and other fuels: rental, other services related to the dwelling, central heating and hot water, electricity, gas and other fuels, and services for maintenance and repair of the dwelling;
        • furnishings, household equipment and routine maintenance of the house: furniture, fixtures, household textile, refrigerators, washing machines and other appliances, tools and equipment for house and garden, repairs of all machines and equipment, chemist's goods, services for households (laundering, dry-cleaning, cleaning, etc.), supplies and equipment for pets and for growing flowers and other ornamental plants;
        • recreation and culture: equipment and supplies for leisure (TV sets, videos, radio receivers, tape recorders, also in combination, personal computers, cameras, typewriters, musical instruments, stationery, articles for painting, LPs, CDs, cassettes and other small goods of cultural nature, toys, equipment for sports), repairs of all equipment, devices and instruments, books (incl. textbooks), newspapers and periodicals, leisure time services (admission and other fees relating to cultural, entertainment and sports events and activities, supplies and equipment for pets and for growing flowers and other ornamental plants, radio and TV licence fees, service charges for lotteries and gambling, package holidays);
        • miscellaneous goods and services: personal care and services (beauty products, articles and appliances for personal hygiene, watches, jewels, artificial jewellery, travelling articles, repairs of these articles, appliances and supplies, services of hairdressing salons, beauty parlours and other personal services), social care expenditure, all types of insurance and services n.e.c. (financial, administrative, advisory, etc.).
      The coverage of the other items is evident from their names.

Table 9-1 lists figures on households as a total for the basic reporting sample. The figures refer to 1999-2002, are compared with 1995 and are governed by the methodology used since 1999.

Tables 9-2 and 9-3 show figures for the basic reporting sample, broken down by social group, which are supplemented with estimates for households in total (figures for the samples concerned were re-weighted by social structure of households established by the microcensus 1996).

Tables 9-4 to 9-5 show statistics on the supplementary and basic reporting samples of households whose net incomes did not exceed 1.4 multiple of the subsistence level calculated from rates in force for a given household (see the table in the introduction to Chapter 24. Social Security, showing subsistence level amounts).

      The term two-parent nuclear family refers to a family consisting of a married couple and unprovided-for child/children, in which neither other relatives nor economically active child/children live.

      The term lone-parent nuclear family refers to a family consisting of a single parent and unprovided-for child/children, in which neither other relatives nor economically active child/children live.

Table 9-6 presents figures related to the basic sample of household budgets statistics, broken down by net money income per household member per year. Each social group in low income brackets includes 20% of households with the lowest net money income per 1 household member. The net money income of each of the households classified to this group did not exceed the upper net income limit shown in the table. The group of high-income households also included 20% of households with the highest net money income per 1 household member in each social group, the net money income of these households being above the lower limit shown in the table.

Table 9-7. Households on common budget: by social group; 2001 and

Table 9-8. Persons in households with income under poverty line: 2000

      The results were obtained by the sample survey "Social Situation of Households 2001" and the presented data were processed for 10 599 households on common budget in the CR. The survey measured incomes of persons and households in the year 2000, while the other data refer to the state at the time of the survey. The data are grossed up to cover the whole population of the CR.

      Household on common budget is based on the declaration on common living and budget in a dwelling.

      Net money income of household is the income after income tax and social and health security contributions.

      Subsistence level of household (see Chapter 24. Social Security) was calculated for each household included in the processing with regard to the number of household members and the age of unprovided-for children.

      Equivalency is the quantity, which takes into account the composition and size of the household. The number of equivalencies per each household was calculated by re-weighting the household members using weights according to the methodology applied in the EU, as follows:

        • first adult member of the household was assigned the weight of 1.0
        • unprovided-for child aged under 14 was assigned the weight of 0.3
        • all the other members of the household aged over 13 were assigned the weight of 0.5.
      Equivalent income is the income per equivalency and was derived as the ratio of the net money income of the household and the number of equivalencies.

      Poverty line - governed by the methodology of the EU, which uses as the relative poverty line (low income threshold) of 60% of the median of equivalent income for all households.

      Education level of household is determined according to the highest educational achievement of the head of household or the partner thereof. The households were classified to the individual groups of education as follows:

        • low level: the highest educational attainment of both partners is basic (including basic education not completed),
        • intermediate level: the highest educational attainment of either partner is secondary,
        • high level: the highest educational attainment of either partner is university.
      Type of household - two-parent families include only two-parent nuclear families composed of both parents and children.

      The applied EU methodology makes sure that the Table 9-8 data are fully comparable on an international scale.

Table 9-9. Per capita consumption of the most important kinds of food

      The consumption is calculated by balancing, from figures on industrial production, self-supplies, initial and final stocks, imports and exports. These figures are taken from statistical questionnaires monitored by the CZSO. They are also obtained from individual food unions, some external trade organizations, the State Veterinary Administration, and other institutions. The table shows average annual consumption per capita (with reference to mid-year population).

      The individual figures are comparable with previous years and linked to the indicators in the chapter 1. Key Indicators of the National Economy.

Table 9-10. Per capita consumption of selected basic kinds of manufactured goods

      The consumption is derived by a balancing, from figures on production, stocks, imports and exports. These figures are taken from statistical questionnaires monitored by the CZSO. They are also obtained from individual manufacturers and organizations engaged in external trade. Gas and power consumption is derived from information provided by the gas utilities concerned.

      The individual figures are comparable over long-time series.

Table 9-11. Consumer durables in households

      The figures on consumer durables in households are derived from figures on production, stocks, imports and exports, by cumulating annual increments and taking account of the service life (determined by the Research Institute of Trade) or wear and tear of the durables. The figures on cars and motorcycles are calculated from information provided by the Ministry of the Interior of the Czech Republic and on telephones by TELECOM Co. and mobile network operators.

      The individual figures are comparable over long-time series.


* * *


      Detailed household budgets statistics including food consumption data are shown, along with methodological descriptions, in the following CZSO publications brought out according to the Catalogue of Publications 2003 (group 3 - LABOUR, SOCIAL STATISTICS, subgroup 30 - Living Standard):

"Household Income, Expenditures and Consumption as Measured by Household Budget Statistics"(Czech-English version), brought out annually (Part I - June, Part II - July, Part III - August)

Part I: Social Groups, Income Brackets

          a) Households by social group (total households; households of employees, of self-employed persons, of farmers, and of pensioners)

          b) Quantile distribution of households

                • decile distribution (households in total)
                • pentile distribution (total households; households of employees, of self-employed-persons, of farmers, and of pensioners)
Part II: Types of Households
          a) Households of employees with unprovided-for children, by number of children and by economically active members (total households with children, of which with 2 children in total and with 2 children and one economically active member, and with three children in total; total lone-parent nuclear families in total, of which with one child and two children)

          b) Households of employees without unprovided-for children and households of pensioners, by number of members and by sex (total households of employees, of which single-member and two-member households; total households of pensioners, of which single member households by sex and two-member households)

Part III: Households on Minimum Income
          a) Minimum income families with children, by type of households (total families with children; total two-parent nuclear families, of which with two children in total and with two children and one economically active member, and with three children in total; total lone-parent nuclear families, of which with one child and with two children)

          b) Households of employees with unprovided-for children and minimum income families

          c) Households of employees with unprovided-for children and minimum income families with children, by type of dwelling (rented dwelling, cooperative dwelling, privately-owned house).

"Příjmy, vydání a spotřeba domácností zpravodajského souboru statistiky rodinných účtů", brought out regularly on the 85th calendar day after the end of quarter.

"Spotřeba potravin v roce 2002", brought out in November 2003.


 

Published: Incorrect data type for operator or @Function: Time/Date expected.Incorrect data type for operator or @Function: Time/Date expected. Incorrect data type for operator or @Function: Time/Date expected
The data are valid as of the release date of the publication.