DSS meeting – September 2007 Point 3.4 of the Agenda Core social variables New proposal for income variable Doc Eurostat/F/07/DSS/11/3.4/EN 17-18.9.2007 DSS meeting – September 2007 Point 3.4 of the Agenda

DSS meeting –September 2007 Background Definition of income variable as a core variable for social surveys September 2006 DSS agreeing on the list of core variables Mandate given to EU-SILC methodological TF to further work out the income variable June 2007 Proposal of the EU-SILC TF endorsed by the Living Conditions working group July 2007 Presentation/discussion at SDG 17-18.10.07 DSS meeting –September 2007 Point 3.4

DSS meeting –September 2007 Household income Aim of the variable Consistent ordering/classification of household according to standard of living Classification purpose only (no derived statistics) 17-18.10.07 DSS meeting –September 2007 Point 3.4

DSS meeting –September 2007 Household income Concepts Household (housekeeping concept) Monthly (current month) Net Income Income components Work/wages or self employment income Property income Social benefits and inter household transfers Tax and employee’s social contributions retrieved 17-18.10.07 DSS meeting –September 2007 Point 3.4

DSS meeting –September 2007 Household income One target variable Equivalised (modified OECD scale) total monthly household net income Coding Inter quintile class (1,2,3,4,5) Cut off points (quintiles) in national currency 17-18.10.07 DSS meeting –September 2007 Point 3.4

DSS meeting –September 2007 Household income Data collection recommendations Information may be collected through one single question on total current monthly household income Tested in ECHP Priority should be given to the (exact) amount Option is given to report income in ranges (to be adapted to income distribution) In guidelines, emphasis should be given to report average in case of irregular income 17-18.10.07 DSS meeting –September 2007 Point 3.4

DSS meeting –September 2007 Household income Data collection recommendations (con’t) The equivalised income is obtained by dividing the total income by the househoId equivalised size (collected through demographic core variables). In case income is collected into ranges, some further post processing in required (distribution assumption, randomisation) For countries/survey collecting annual income (EU-SILC), recent studies (AT, IT) seems to show that quintiles obtained on the basis of annual income distribution are well correlated with those obtained on the basis of current monthly income except for irregular income. 17-18.10.07 DSS meeting –September 2007 Point 3.4