1. Working Group Income and Living Conditions
SILC implementing regulation – Annex 2 –characteristics of variables - flags
7-8 November 2018
Working Group Income and Living Conditions

2. Current situation Relatively complex rules
Inconsistencies in the use of flags
New need – information on the data source
NSIs opinion divided between keeping the system and simplifying it
Changing rules requires some initial investment only in the first year

3. Progress October 2017 – first proposal to the TF
June 2018 – presentation to WG and written consultation
Summer 2018: Eurostat + volunteer countries (CZ, SE, SI, FI)
September 2018: presentation of 3 scenarios to the TF; TF selected 2 scenarios + suggestions for improvements
WG November 2018: final choice of scenario
7-8 November 2018
November 2018
November 2018

4. Scenarios Scenario I Scenario II Based on current use
Small simplifications/consistency improvements
Scenario II
New information: main source of data
Simplifications concerning gross/net data

5. Changes compared to the proposal seen by the TF
Suggestions of the TF taken into account
Split flag digits into separate variables
Drop the flag referring to proxy collection
Drop the flag referring to the recorded value (gross/net)
Other changes
More flag values added for collected values (type of gross/net collected data) and imputation method to cover more possibilities
Examples added
7-8 November 2018
November 2018
November 2018

6. Questions for all scenarios
Keep or drop the imputation factor? If keep, how to calculate it?
Concatenate flags or have several variables?
Treat other monetary/numeric variables similarly to income variables?

7. Scenario I: non-income variables _F1, 1 digit-1
missing value -3
non-selected respondent -7
not applicable because the question was not used that year
Other negative values
to be defined according to the question 1
value is filled and no other information is necessary/possible

8. Scenario I: income variables _F1, 1 digit – reason for missing-3
non-selected respondent -7
not applicable because the question was not used that year
Other negative values
to be defined according to the question
no income 1
value is filled and no other information is necessary/possible

9. Scenario I: income variables _F2, 1 digit – collected net/gross
Net of tax on income at source and social contributions 2
Net of tax on income at source 3
Net of social contributions 4
Gross 5
Unknown 6
Mix of net and gross 7
Mixed of different nets 8
Not applicable

10. Scenario I: income variables _F3, 1 digit – imputation method
no imputation 2
deductive imputation 3
statistical imputation 4
gross/net conversion 5
mixed approach

11. Scenario I: income variables _F4, 3 digits or more – imputation factor
Imputation factor = collected value / recorded value (in percent with no decimal)
No imputation = 100
If recorded value=0 , imputed value≠0, then use special value

12. Scenario II: all variables _F1, 1 digit
main source is survey/interview (with respondent or proxy) 2
main source is administrative data 3
it is not possible to establish a main source -1
missing value (not allowed for income variables) -3
non-selected respondent -7
not applicable because the question was not used that year
Other negative values
to be defined according to the question
Task-force
On the revision of the EU-SILC legal basis
24-25 September 2018

13. Scenario II: all variables _F2, 1 digit
Filled directly from proxy interview/respondent interview/administrative source 2
Gross/net conversion 3
Filled by construction (deductive/logical imputation, excluding gross/net conversion) 4
Filled by statistical imputation
24-25 September 2018
Task-force
On the revision of the EU-SILC legal basis

14. Scenario II: income variables _F3, 1 digit – collected net/gross
Net of tax on income at source and social contributions 2
Net of tax on income at source 3
Net of social contributions 4
Gross 5
Unknown 6
Mix of net and gross 7
Mixed of different nets 8
Not applicable

15. Scenario C: income variables _F4, 3 or more digits – imputation factor
Imputation factor = collected value / recorded value (in percent with no decimal)
No imputation = 100
If recorded value=0 , imputed value≠0, then use special value

16. Thank you.