Surveys

Introduction

Information about the income and expenditure of households is necessary to support the process of socio-economic reform in Iraq. Almost any change in economic or social policy will have an impact of households and the wellbeing of their individual members. To meet this information need, the Central Organization for Statistics and Information Technology (COSIT) implemented a Rapid Household Budget Survey (RHBS) in May 2005. The survey as implemented covered representative households in all Governorates in Iraq except Erbil and Dahuk. This work was sponsored and supported by the UK Department for International Development (DfID).

COSIT was responsible for preparing the survey plan, the design of the questionnaire, the survey design and selection of the sample households, survey preparation and training of the logistical staff. COSIT staff in the central office and governates performed all aspects of survey organization, fieldwork, data processing and data analysis.

DfID provided funding for the project, as well as technical advice on the goals of the survey, on the design of the survey questionnaire, and on the output tables.

A sample size of 3160 households was selected randomly to provide for meaningful indicators at the national level, allowing for a breakdown into urban and rural categories.

Although the RHBS was conducted over a short time period, compared to the usual time period for a HBS, in which the survey work may continue for a period of up to a year, the methodology is broadly similar. We hope that this survey will provide sufficient information about household income and expenditure to help fill the gap until a more comprehensive survey can be implemented.

The COSIT team included Dr. Mehdi Al-Alak, head of COSIT; Mr. Louay H. Rasheed, director general of technical affairs; Miss Najla A. Murad, director of Living Condition Statistics Department; Mrs. Hana Abd-Aljabar, expert; and Mr. Saad. Z. Basheer, director of Index Numbers Department.

DfID provide advice largely through its Maxwell Stamp PLC Iraq contract team, including Ms. Simona Marinescu, Dr. Myo Nyunt and Dr. Michael Dunn, with technical support from Dr. Saul Morris of DfID.

It is hoped that the main results presented in this report will be used for the benefit of Iraqi peoples, by facilitating the development of programs that are oriented towards the improvement of living conditions in Iraqi households, as well as by facilitating the effective social impact analysis of proposed economic policy developments.

Target of the survey

In addition to the direct goals of RHBS mentioned in the introduction, the HBS allows for:

1. Providing important indicators on consumption expenditure patterns, and the effect of household socio-economic and demographic factors on them.

2. Estimating averages for households and individuals, of expenditure on goods and services, recognizing the influence of socio-economic factors.

3. Providing indicators on social and economic welfare levels, such as income levels, disability payments and pensions, and dwelling conditions.

Sample Design

The survey was carried out on a nationally representative sample of Iraqi households. An overall sample of 3168 household has been distributed to urban and rural areas for all the governorates.

The sample size has been calculated using the following formula:

n= Z² P(1-P) / m² • D • (1 + NR)

where:
n= Sample size
Z= Standard normal deviate corresponding to α = 0.05 (1.96)
P= Estimated population proportion of defined condition (here, we use p=0.5, to get an adequate sample size in the absence of target indicators).
m= Expected precision (0.03)
D= Design effect (D= 1.6, According to our previous estimates)
NR= Non-response rate (NR= 0.16, according to opinion poll survey, 2004)

n = (1.96)²(0.5)(0.5)(1.6)²(1+0.16) / (0.03)² = 3168

The sample technique used to select the sample units was multi-stage stratified cluster sampling, as follows:

1. The sample size has been distributed to urban and rural areas according to the 1997 population proportion (estimated 68% and 32% respectively). (i.e. 2154 HHs were selected from urban areas and 1014 HHs were selected from rural areas).

2. Each of the urban and rural samples was distributed to the governorates, proportional to urban size and rural size in the governorates.

3. In order to simplify and facilitate the fieldwork, the cluster procedures have been adopted by selecting random sample of majals, (a majal is a group of (15-26) HHs), using the random systematic procedure. The 1997 population frame has been used to select these clusters in each governorate.

Ten (10) households have been selected from each cluster, and a required adjustment on the total sample has been made to keep the cluster sample on (10) HHs.

Sample size distribution for urban, rural and all governorates

Survey questionnaire

The questionnaire included 13 sections as follows: -

1. Individual section : This section contained question regarding social, education, and employment status.

2. Activities section : Contained questions about economic activity and occupations of household members who are in the labor forces.

3. Social support section : Included household members’ salaries from pension and social assisting.

4. Health section : Included question on health status and household members who have a handicap.

5. Section (5-8) : These sections contained question about household expenditure on goods and consumer services and on household capital expenditure.

6. Income section : Included question regarding household revenue and other cash income.

7. Household sales : This section included questions about household food ration sales.

8. Eating out section : Contained question on household members who took meals in catering units and other households at weddings, baptisms celebration, and during visits.

9. Ownership of durables : Included questions on household ownership of durables and housing characteristics.

10. Last section : Contained questions regarding adequacy of household revenue and satisfaction of household needs.

Classifications used

All the questions were pre-coded except those related to economic activity and occupation. For this purpose we used the following classifications:

1. The international standard industrial classification, revision 3 (ISICO3).

2. The international standard classification of all occupations adopted by the international labor organization (ILO) in 1988.

Pre-test of survey

On 22 of April COSIT implemented a pre-test through 15 households different in their welfare level and drawn from both urban and rural areas, in order to test the questionnaire, survey instructions, programs and the data collection and processing operations.

The fieldwork team included four (4) interviewers distributed throughout the selection region. The fieldwork took 5 hours.

COSIT sent a report to DFID team including interviewer observations regarding interview results and in addition a table of indicators on household fuel expenditure, amounts and values.

Updating Primary Sample Unit

The census frame provides a database for each family by geographic distribution and on the level of the smallest administration unit, which is the Nahia. A Nahia (comprising a group of families between 15-25 households) is distributed to a village or part of it in rural areas and to a street or part of it in urban areas for survey purpose the Majal in urban and in rural areas is considered as the primary sample units.

To select the survey sample required COSIT to update and fix all the households' names and address in each primary survey Unite (PSU) provided by the census frame 1997. and in order to process the effect of change that has been happened since 1997, COSIT implemented a plan to update and register the name of the head of all households in each PSU COSIT then chose groups of 10 households as a cluster by using linear systematic sampling, because that process spreads out the sample geographically.

Fieldwork on updating PSUs started on 13 of May in all governorates except Sulamaniya, which was updated on 19 of May, and continued in all governorates for two days.

Organization of survey staff

The staff who participated in the administration and fieldwork of the survey was organized as follows: -

1. Survey management team : Consists of the COSIT chairman, with assistances by the director general of technical affairs and the head of the living condition statistics department.

2. Consultants : One expert from the national accounts department and the head of index number department.

3. Central supervisors : Sixteen (16) seniors of COSIT staff were responsible of training and supervising with the follow-up local supervisors, interviewers, fieldwork and the editing in the governorates.

4. Local supervisors : A total of 16 persons from governorates specialized in implementing the household budget survey. These people had been selected and trained to supervise the fieldwork teams daily, attend interviews and edit the completed questionnaires.

5. Interviewers : A total of 105 persons were carefully selected to visit the selected households, interview them and collect data.

6. Editors : They edited the completed questions, with the first phase of editing carried out at the governorates offices by one editor in each governorate. A second phase was then carried out at the headquarters by 8 members of COSIT technical staff.

7. Coders : Four (4) persons were coding certain items in the questionnaire such as occupation, type of economic activity, in accordance with the international standards adopted by COSIT.

Training of staff

COSIT implemented the first training program on 8 - 9 May 2005. This was attended by representatives from DFID. The training program included explanations of the questionnaire, organizing of the work and defining responsibilities for each one of the team members. Participants were central supervisors, coders, editors and data processors.

Over the period 11 - 12 May, central supervisors implemented training programs in the governorates for training local supervisors, editors and interviewers. The training included explanation of the questionnaire and instruction in data collection and field editing.

Fieldwork

The fieldwork started on 15 May 2005, except for work in Sulamaniya, which started on 21 May, and continued in all governorates for ten days.

Editing and data entering was completed throughout entire period. Many quality checks were carried out by central supervisors, who observed interviewers at work and supervised the fieldwork process as a whole.

One person from each governorate was responsible for editing the completed questionnaires. In complete or erroneous questionnaires were returned to the interviewer for correction. In addition the headquarters editorial team checked that these stages had been completed before delivering the questionnaires to the computer directorate for data entry.


Main definitions of the survey

1. Household : A household consists of one or more individuals, residing in one housing unit, related or not to each other by blood, but sharing food, drinks and any other living affairs, who form a living unit that spends on its consumption needs of goods and services from its cash income, regardless of the source of that income.

2. Marital Status : The social status of a person aged 12 years and above at time of the interview. It may be one of the following cases (Never married, Married, Divorced, Widowed, or Separated).

3. Educational Status : The educational status of a persons aged 10 years and above at time of the interview, defined as follows:

   1. Illiterate : A person who cannot both read and write, thus he or she cannot write a simple description about himself or herself in any language.

   2. Able to read and write : A person who can read and write in any language but does not have an educational qualification.

   3. With Qualification : The highest educational stage successfully completed by a person at the time of the interview. The educational stages are:
      Elementary / Intermediate / Secondary / Intermediate Diploma / BC / Higher Diploma / M.A / PhD / others

4. Employment Status : The position of an employed person while practicing his or her work. It may be one of the following:

   1. Paid Employee : Any person working for another person or establishment who receives any kind of payments (in cash or in-kind) whether it was monthly, weekly, daily, as wages, salary, commission, piece-rate, etc.

   2. Employer : Any person working in an establishment owned entirely or partially by himself or herself, or practices a job or trade and who hires one or more paid employees who receive cash or in-kind wages.

   3. Own-Account Worker : Any person working in an establishment owned entirely or partially by himself or herself, or practices a job or trade and who hires no paid employees whether in cash or in-kind.

   4. Unpaid Family Worker : Any person working for his or her family or one of its members, provided that he or she does not receive any kind of payment, even if he/she receives some kind of remuneration, e.g. apprentices or trainees.

5. Employed : Any person of 15 years age and more who works for the public sector or private sector, provided that he or she worked at least on hour during the seven days prior to the date of the interview.

6. Unemployed : Any person of 15 years age and more who has not worked at least one hour during the seven days prior to the date of the interview.

7. Current occupation : The kind of work practiced by the employed person during the seven days prior to the date of interview.

8. Economic activity : The major economic activity of an establishment where the person works, typified according to its produced goods and services. For those not engaged in establishments, their economic activity was identified and recorded according to the specifications of their major occupations.

9. Expenditure : The total value of resources appropriated by an individual or household, whether in cash or in kind, measured in monetary terms.

   1. Consumption expenditure : The total expenditure is considered to be equal to total cash expenditure, plus the estimated value of non-cash consumption of goods and services.

      • Cash expenditure : Consumption expenditure on all goods and services of the household, whether payment is in cash or installment or in debt, or whether it is consumed at the time of obtaining it or is stored by the household.

      • Non-cash consumption : It means all the goods that the household consumes from the production of its farm, animal wealth, garden or home craft. The value of non-cash consumption is estimated according to the retail price in the nearest market to the household.

   2. Non-consumption expenditure : Including capital expenditure, tax contributions, transfer expenditure, bank deposits, repayment of loans and credits.

10. Income : Consists of cash and in-kind income accruing to a person in return for work that he or she performs for others, whether that work is major or secondary. It is divided into:-

    1. Wages and salaries : Consists of cash income accruing to person in return for work he or she performs for others including any kinds of allowances or other forms of remuneration.

    2. Income of own-account workers and employers : The mixed cash income from wages and ownership accruing to any household member from an establishment that he or she owns. Such income may be realized from personal or family establishments whether commercial, industrial or agricultural, or from private professional practice such as doctors, accountants, engineers.

    3. Social income support : Amount paid from social support institutions to workers or employees as pension, social security, un-employment benefit, income support.

    4. Property income : Payment due to an owner of a financial or non-financial asset from keeping the non-financial asset under the disposal of others.

    5. Property sales income : Cash amount payable as a result of selling an asset.

    6. In-kind benefits : The estimated cash values for in-kind items provided by an employer to his or her employees, as an alternative to cash salaries.

    7. Borrowing and withdrawal from savings banks and other banks. : The amount received by household members by withdrawal from a savings bank or other bank or by borrowing from a bank.