1. Point 2.1 of the agenda: net monthly income of the household
EUROSTAT, Unit F3 (living conditions and social protection)
17 January 2019
WG Core variables in social surveys

2. Background 2005: creation of the TF on core social variables;
2006: presentation of the report of the TF during the DSS meeting:
Proposal: restrict the income components (to wages and social transfers);
Several questions regarding this proposal;
Agreement on providing a RANKING of observations by income level as the key purpose of the variable;
decision taken to further continue methodological developments on the income variable, especially with a contribution of the SILC methodological TF.
2007: presentation of the revised proposal, developed by the SILC methodological TF, during the DSS meeting.
More components included.
Easier output (net monthly equivalised household income only).
General positive opinion of the DSS; document to be updated taking into account comments expressed.
WG Core variables in social surveys

3. Revised proposal ( )
Developed on the basis of the SILC methodological TF and of the EHS pilot data collection (2008);
Aim of the core variable on income: obtain a proxy of the economic well-being of the respondent (depends on his/her income but also on the income received by the rest of the people living with him/her);
Adjustment to the size of the household: calculation of an EQUIVALISED income (OECD scale);
Net income (and not gross) to be collected in order to have an idea of the disposable income of the household;
Monthly income (for simplicity reasons).
WG Core variables in social surveys

4. Revised proposal ( )
Variable: «net monthly equivalised income of the household».
Proposed coding:
WG Core variables in social surveys

5. Revised proposal (2008-2009) Reporting unit: Household.
Responding unit: Household respondent.
Filter: No filter.
Reference period: Current month (if income varies between months, an average is to be given).
Mode of collection: Personal interview or register.
WG Core variables in social surveys

6. Revised proposal ( )
All income components are to be considered:
Income from work:
Employee income (net cash employee income);
Self-employment income (net cash profit or losses from self-employment);
Property income:
Interests;
Dividends;
Profits from capital investment in an unincorporated business;
Income from rental of a property or land;
Income from social benefits:
Unemployment benefits;
Old-age benefits;
Survivors benefits;
Sickness and disability benefits;
Family/children related benefits;
Social exclusion allowances;
Housing allowances,
Education related allowances,
Regular inter-household cash transfers received;
Other income received.
WG Core variables in social surveys

7. Technical issues/guidelines
The equivalised household income shall not be asked directly to the respondent (not feasible).
Procedure:
ask in the interview the total net household income,
calculate the equivalised income afterwards, using the separate core variable on the household composition
If possible (CATI/CAPI interviews), preprocessing of the questionnaire shall be made, so that the net equivalised income is automatically and instantaneously calculated.
For the total household net income, the exact or approximate total amount should be asked in a first stage.
If the respondent doesn’t know the exact or approximate amount for their household, he/she should then be requested to indicate the income range corresponding to the total household net income per month (income bands to be provided to the interviewers).
WG Core variables in social surveys

8. Technical issues/guidelines
Example questionnaire:
WG Core variables in social surveys

9. Good practices
For a given country, the wording must be detailed enough in order to ensure that the main component are taken into account in the estimates, and to collect "harmonised" data at the level of the country, but not too detailed in order not to become cumbersome for the respondent
Guidelines for interviewers must specify the income components that are taken into account, especially if it is decided to choose a simple question
Collection of an actual income value rather than attribution to an income range, when possible.
Data collection from registers, when feasible.
Data collection through interviews: prior contact to allow collection of supporting information (e.g. pay slips, benefit slips); training of fieldwork interviewers.
WG Core variables in social surveys

10. Next steps
Feedback of the WG on core variables in social surveys expected by 10 July;
Revision of the document (if any);
Presentation of the final proposal to the DSS for endorsement in September 2009;
Implementation in social surveys from 2010 onwards;
Possible future revisions.
WG Core variables in social surveys