Developing the income data in the

Scottish Household

Survey

Chris Martin, Associate Director, Ipsos MORI

Income and Poverty Statistics Seminar 11th June

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Content

Brief introduction to the income data in the SHS

Remit of the review/feasibility study

Implications for the data

Discussion

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…a bottom up approach

Total Net Household Income

Earnings

Other jobs

SpouseHIH

Main job

Benefits Miscellaneous Sources

DisabilityNon-disability

Income support

Jobseekers Allowance

Statutory Sick Pay

DLA

+ 10 Others

State Pension

Child Benefit

Housing Benefit

Dig Money

Invalid Care Allowance

Incapacity Benefit

Attendance Allowance

+ 6 Others

Investment Income

Maintenance payments

Private pension

Student loan

+ 5 Others

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How income is derivedQuestionnaire Earnings –

- Are you (& your spouse) employed?- How many jobs?- Amount received/over what period- Net or Gross amount

Benefits/other sources- Do you (or your partner) receive any of these benefits/other sources?- Who receives it?- Amount received/over what period.

Data processing Calculate annual amounts for each component Convert gross earnings to net earnings Clean data (examine outliers, compare with other variables) Impute missing values (refusals and don’t knows) using various

methods for each component separately Sum all components Any household with less than £50 per week set to missing

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Remit of the review

Examine definition of total net household income Extending the estimate to include all adult household members?

- By using FRS data to model likely amounts?- By extending the questionnaire?- By imputing this information?

Imputing income for households where it is currently set to missing?

Examine the design of the questionnaire How the questions are structured. The current coverage of the sources of income (particularly “investment

income” Harmonisation between the SHS and other surveys (the SHCS, possibly

learning from the FRS).

Examine the imputation routines used. An additional annual re-imputation (currently all undertaken on a

quarterly basis)? Imputing missing income for the SHS and the SHCS together.

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Discussion points

Were you aware that Local Authority level income data was available from the SHS?

Do you currently use income data from the SHS? If so, how and what for? If not, why?

Do you think work is required to estimate the income of all householders, so that equivalised income could be calculated?

How would you use improved income data from the SHS? What decisions would you hope to be able to base on results from SHS analysis?

How important do you think harmonisation with other household surveys is?