General Background
Objectives of the Survey
Authority for the Survey: Confidentiality of Data
Scope and Coverage
Survey Design
Sampling Design
Survey Operations
Data Processing
Survey Non-response
Estimation Procedure
Differences Between the 1994 and 1997 FIES
Concepts, Definitions and Explanations
Limitations of the Data
Items/Variables Gathered

1. to gather data on family income and family living expenditures and related information affecting income and expenditure levels and patterns in the Philippines;

2. to determine the sources of income and income distribution, levels of living and spending patterns, and the degree of inequality among families, and

3. to provide benchmark information to update weights in the estimation of consumer price index.
4. to provide information in the estimation of the country's poverty threshold and incidence.

More recently, Executive Order 121, otherwise known as the Reorganization Act of the Philippine Statistical System, which was passed on January 30, 1987, declared that the National Statistics Office (NSO) shall be the major statistical agency responsible for generating general purpose statistics and for undertaking such censuses and surveys as may be designated by the National Statistical Coordination Board (NSCB).

Like all other surveys undertaken by the NSO, the data gathered in the 1997 FIES are for statistical puprposes only and will be published in summary form. As provided for in said Act, the data will never be used for taxation, investigation or enforcement puposes.

Data gathered in the survey include sources of income in cash and in kind and the level of consumption by item of expenditure. Related information such as family size, number of family members employed for pay or profit (wage/salary or own-account worker), occupation, age and educational attainment of household head, and housing characteristics were also included.

The survey involved the interview of a national sample of about 41,000 sample households deemed sufficient to provide reliable estimates of income and expenditure levels for each province of the country, key cities and key municipalities. The sample households covered in the survey were the same sample households interviewed in the July 1997 and January 1998 rounds of the Labor Force Survey (LFS).

In most NSO surveys, statistics have been limited to socio-economic data at national and regional levels. For a country like the Philippines where extensive programs for development are being planned and implemented, there is the need for information at the local level. In this regard, the survey sample design has been developed in such a way that accurate provincial, key city/municipality level classification would be possible for selected characteristics.

Just like previous FIES, the 1997 FIES adopts the "shuttle type" of data collection. The samples are interviewed in two separate operation using the same questionnaire, each time using the half-year period preceding the interview as reference period. This scheme is utilized to improve the quality of data gathered since it minimizes memory bias of the respondent and at the same time captures the seasonality of income and expenditure pattern. In general, the first phase of survey operation was conducted in July 1997 and data gathered were for the period January 1 to June 30, 1997. The second operation was conducted in February to March 1998 and gathered information for the period July 1 to December 31, 1997.

The concept of "average week" consumption for all food items was also utilized in the 1997 FIES in order to further reduce memory bias. Moreover, the reference period for Fuel, Light and Water, Transportation and Communication, Household Operations and Personal Care and Effects is not limited only to the "past month" but in some specified cases, the concept of "average month" consumption is used. For all other expenditure groups, the "past six months" is used as reference period.

Estimates of income and expenditures in kind such as food items received as gifts, rental value of owner-occupied house are based on prevailing market prices or rental value in the locality.

The sampling design of the 1997 FIES adopted that of the Integrated Survey of Households (ISH). Starting July 1996, the sampling design of the ISH uses the new master sample design. The multi-stage sampling design of the master sample consists 3,416 PSUs in the expanded sample for provincial level estimates with a sub-sample of 2,247 PSUs designated as the core master sample for regional level estimates. The 1997 FIES was based on the expanded sample.

1. Domains

The urban and rural areas of each province are the principal domains for the survey. In addition, areas with 150,000 or more population as of 1995 Census of Population (POPCEN) are also domains of the survey with rural and urban dimensions.

The domains for the new master sample are similar to that of the previous ISH design with an addition of 23 newly created domains.

2. Sampling Units

The multi-stage sampling design of the master sample involves the selection of the sample barangays for the first stage, selection of sample enumeration areas for the second stage, and the selection of sample households for the third stage in each stratum for every domain.

The frame for the first and second stages of sample selection were based mainly on the results of the 1995 POPCEN. The 1995 POPCEN list of barangays with the household and population counts is used in the first stage of sample selection. The stratification of barangays included in the frame, however, are based on the 1990 Census of Population and Housing (CPH) and other administrative reports from the field offices of NSO. An enumeration area (EA) is a physical delineated potion of the barangay. For barangays that were not divided into EAs, the barangay was treated as an EA.

The enumeration areas which constitute the secondary stage sampling units are those that were formed during the 1995 POPCEN. The sample barangays were selected systematically with probability proportional to size from the list of barangays that were implicitly stratified.

The frame for the third stage of sample selection is the list of households from the 1995 POPCEN. The selection of sample households for the third stage was done systematically from the 1995 POPCEN List of Households.

All survey operations were undertaken under the technical and administrative supervision of the Household Statistics Department. The District Statistical Officers (DSOs), Statistical Coordination Officers (SCOs) and hired Statistical Researchers (SRs) served as interviewers during the operations. Supervision and monitoring of survey operations were done by the Regional Administrators (RAs), Provincial Statistics Officers (PSOs) and Central Office personnel, most of whom have experience and undergone training on various types of surveys and censuses. In Metro Manila, supervision was likewise undertaken by SCOs/Statisticians.

Training was conducted in three levels. The first level training held at the Central Office, had the Task Force participated by Central Office staff, Regional Administrators (RAs) and selected field personnel. The Central Office staff and selected field office personnel acted as trainers for the second level training held at the regional offices. The second level training was attended by the regional staff/assistants, Provincial Statistics Officers/Officers-in-charge (PSOs/OICs) and their assistants and selected District Statistical Officers (DSOs). They in turn acted as trainers in the third level training. The participants in the third level training were some District Statistical Officers (DSOs), Statistical Coordination Officers SCOs) and hired Statistical Researchers (SRs) involved in the operation. The third level training was held at the provincial offices.

The 1997 FIES questionnaire contains about 800 data items and a guide for comparing income and expenditures. The questionnaires were subjected to a rigorous manual and machine edit checks for completeness, arithmetic accuracy, range validity and internal consistency. Items failing any of the edit checks were either corrected automatically by the computer on the basis of pre-determined specifications or, when needed examined in a clerical error-reconciliation operation.

The electronic data processing system developed since 1985 FIES by the Information Systems Development Section of the NSO was used in processing the 1997 FIES with few modifications. There were thirteen major steps in the machine processing and these are as follows:

1) Data entry and key verification
2) Structural editing (minor edit)
3) Edit list verification/correction
4) Update
5) Completeness check
6) Completeness check list verification/correction
7) Identification verification
8) Extraction of summary file for preliminary results
9) Matching of visit records (big edit)
10) Expansion
11) Tabulation
12) Generation of CPI weight tables
13) Variance analysis

Steps (1) to (8) were performed right after each visit while the remaining steps were carried out upon completion of the data collection for the first and second visits. Steps (1) to (7) were implemented at the regional offices while the concluding steps were handled at the Central Office.

As in all surveys, two types of non-response were encountered in the 1997 FIES: interview non-response and item non-response. Interview non-response refers to a sample household that could not be interviewed. Since the survey require that the sample households be interviewed in both visits, households that transferred to another dwelling unit, temporarily away, on vacation, not at home, household unit demolished, destroyed by fire/typhoon and refusal to be interviewed in the second visit contributed to the number of interview non-response cases. Interview non-response totalled to only 3.6 percent, with 39,520 of the sample households being successfully interviewed in both survey visits.

Item nonresponse, or the failure to obtain responses to particular survey items, resulted from factors such as respondents being unaware of the answer toa particular question, unwilling to provide the requested information, omission of questions during the interview, etc. Deterministic imputation was done to address item nonresponse. This imputation is a process in which proper entry for a particular missing items was deduced from other items of the questionnaire where non-response item was observed. Notes and remarks made in the questionnaire were likewise referred.

The basic weight for the sample households for the 1997 FIES can be expressed as an inverse of the probability of selection, as follows:

where:

bh	=	number of sample barangay/EAs selected in stratum h (domain city, other urban or rural, within province) for the expanded master sample
Nhij	=	number of households from the 1995 POPCEN frame in the ith sample barangay in stratum h
Nh	=	total number of households from the 1995 POPCEN frame (cumulated measure size) from stratum h
Nhij	=	number of households from the 1995 POPCEN frame for the jth sample EA in the ith sample barangay in stratum h
nhij	=	number of sample households selected in the jth sample EA in the ith sample barangay in stratum h (fixed at 12)

The sample household was self-weighting within stratum, that is, each household in a particular stratum received the same weight. However, due to household non-interviews, the basic weight is adjusted. The weights may vary slightly by sample EA within stratum.

For the 1997 FIES, there was no case of sample EA not enumerated. Therefore, weight adjustment was carried out only in two stages. The basic weight was adjusted to take into account household non-interviews, followed by an adjustment based on the household projections for the domain.

Weight Adjustment Factor for Non-Interview Households

The first stage weight adjustment factor for non-interview households was carried out at the level of the sample EA. This adjustment factor can be defined as follows:

The 1997 FIES follow basically the same concepts and methodologies used in previous FIES. However, a number of changes are introduced in the 1997 FIES. Some of these changes are geared towards the improvement of the quality of data. These include the following:

A. Geographic Classification

A major difference between the 1994 and 1997 FIES is the inclusion of the CARAGA region which was created through Republic Act (RA) 7901 signed and implemented on February 23, 1995. The CARAGA comprise the provinces of Agusan del Norte, Agusan del Sur, Surigao del Norte and Surigao del Sur. The first three provinces were formerly part of Region X (Northern Mindanao) while Surigao del Sur was formerly part of Region XI (Southern Mindanao).

B. Sample Size

The national sample increased from 29,500 households in 1994 to 41,000 households in 1997. The change is the result of the new master sample design used in the ISH, designed to improve the precision of provincial level estimates for household surveys.

C. Statistical Comparison with other FIES Results

To be able to compare the 1997 FIES estimates with other FIES results in real terms, the effects of inflation have to be removed. For comparative purposes, the Consumer Price Index (CPI) is used to deflate the 1997 FIES estimates.

The deflator for the 1997 FIES estimates is obtained by dividing the 1997 CPI by the 1994 CPI. To express the 1997 FIES estimates in 1994 pesos, the values are then divided by the quotient of the two CPIs.

Respondent

The respondent interviewed in this survey is the household head or person who manages the finances of the family or any member of the family who can give reliable information or answers to the questionnaire.

Family

A family is defined as a group of persons usually living together and composed of the head and other persons related to the head by blood, marriage or adoption. For purposes of this survey, the "extended" family concept is followed. A single person living alone is considered as a separate family. The following are the different types of household used in the survey:

1. Single family - refers to the household composed of a single nuclear family. (A nuclear family is composed of a father and mother with unmarried children or a parent with children). For purpose of the survey, a single person household is considered as a single family. Also considered are unmarried sisters and brothers who are living together as one household. The presence of a boarder and domestic helper will not change the household type.

2. Extended family - refers to the household composed of a nuclear family as defined above together with relatives like son-in-law, daughter-in-law, grandson, granddaughter, father, mother and other relatives.

3. Two or more non-related members - refers to a household with two or more non-related families or two or more persons not related to each other by blood, marriage or adoption.

Family Size

This refers to the total number of family members enumerated. Included as family members are those whose relationship to the household head is spouse, son, daughter, father, mother, son-in-law, daughter-in-law, sister, brother, granddaughter and grandson or other relative.

Family Income

Total family income includes primary income and receipts from other sources received by all family members during the calendar year 1991 as participants in any economic activity or as recipients of transfers, pensions, grants, etc.

Primary income includes salaries and wages, commissions, tips, bonuses, family and clothing allowance, transportation and representation allowances, honoraria, and other forms of compensation and net receipts derived from the operation of family-operated enterprises/activities and the practice of a profession or trade.

Income from other sources include imputed rental values of owner-occupied dwelling units, interests, rentals including landowner's share of agricultural products, pensions, support and the value of food and non-food items received as gifts by the family (as well as the imputed value of services rendered free of charge to the family).

Also included as part of family income are receipts from family sustenance activities which are not considered as family-operated enterprise.

Following the International Labor Organization concept of income, the 1991 FIES excludes profits from sale of stocks and bonds, backpay and proceeds from insurance, net winnings from gambling, sweepstakes and lotteries and inheritance as part of family income. However, these are included as part of other receipts.

Income Decile

Two levels of income deciles were utilized in this survey - national and regional. The national income decile is obtained by ranking the weighted total family income of all sample families in the country from lowest to highest. Then these are grouped into tens. The first tenth, meaning those with the lowest income, is called the first decile; the second tenth, second decile and so on.

A similar procedure is implemented for the regional decile, except that what is arrayed is the weighted total family income of sample families in a given region.

Per Capita Income

Per capita income is obtained by dividing the total family income by the total number of family members

Per Capita Income Decile

Similarly, two levels of per capita income decile were utilized - the national and regional per capita income decile. The per capita income of families for the whole country were arrayed in the national per capita income decile while in the regional per capita income decile, only those in a given region. These are subsequently grouped into tens, with the lowest comprising the first per capita income decile.

Main Source of Income

This refers to the source from which most of the income of the family is obtained. If the family has more than one source of income, the main source that would be considered is the source where the bulk of income is derived.

Salaries and Wages from Employment

It includes all forms of compensation whether in cash or in kind received by family members who are regular or occasional/seasonal workers in agricultural and non- agricultural industries.

Imputed Rent of Owner-Occupied 0 Dwelling Unit

Imputed rent is the estimated amount that the owner of a dwelling unit would charge if he/she were to rent his/her entire dwelling unit monthly, unfurnished and excluding the costs for utilities. The rental value is based on the prevailing rate in the locality.

Imputed rent differs from amortization payments. Imputed rent refers to the value of the house/lot based on its utility while amortization payments refer to the periodic payments made by the family on real property they acquired on installment basis.

Imputed rent of free housing enjoyed by employees is also included.

Net Share of Crops, Fruits and Vegetables Produced or Livestock and Poultry Raised by Other Households

This refers to the family's share of harvested crops, fruits, vegetables, etc., from the tenant or from a fixed rent or any amount out of the produce during the reference period. It also includes the share of the family from the proceeds of the sale of pig, cow, etc. which the family owned but raised by others and disposed of during the reference period although there was no landlord-tenant relationship between the sample family and the one who raised it

Received as Gifts

Received as gifts includes all food and non-food items received in kind by the family during the reference period. For food items, alcoholic beverages and tobacco received in kind by the family, only those consumed by the family during the reference period are included. Foodstuffs received in the form of support, assistance or relief are likewise considered as gifts. However, food items, alcoholic beverages and tobacco consumed by a family member at parties attended, or food items offered to him by friends are not included.

Food and non-food items received as gifts include those received from other households, charitable institutions, the government or from persons abroad, free of charge.

Entrepreneurial Activity

An entrepreneurial activity or a family-operated activity is any economic activity, business or enterprise whether in agriculture or in non-agricultural enterprises, engaged in by any member of the family as an operator or as self-employed.

Included as family-operated activities are those which are operated as single proprietorship or loose partnership, without formal organization. Thus partnerships, corporations, associations, etc. which are formally organized are excluded.

Family Sustenance Activity

A family sustenance activity is also a family activity but unlike an entrepreneurial activity, the produce from the former is mainly for home consumption. Occasionally, sales are made when the harvest/produce is more than enough for family consumption.

Family Expenditures

Family expenditures refer to the expenses or disbursements made by the family purely for personal consumption during the calendar year 1991. They exclude all expenses in relation to farm or business operations, investment ventures, purchase of real property and other disbursements which do not involve personal consumption.

Gifts, support, assistance or relief in goods and services received by the family from friends, relatives, etc., are also included as part of family expenditures.

Value consumed from net share of crops, fruits and vegetables produced or livestock raised by other households, family sustenance and entrepreneurial activities are also considered as family expenditures.

Food Consumed at Home

The items included in this portion covers the actual consumption (not expenditure) of the family during the past week. This category includes the food prepared at home and eaten in place of work, school, etc., and those home-cooked food bought outside the home but eaten at home.

Food consumption covers only the actual consumption of the family, as well as domestic helpers and other persons employed by the family to do odd jobs around the house, and family guests (relatives or non-relatives who are not members of the household but had stayed with or visited the family for less than a week within the past week). The consumption of boarders and other persons in the same household not related to the family is excluded from this category.

Food Regularly Consumed Outside the Home

This includes food regularly bought and eaten by the family members outside the home like snacks, merienda, lunch, etc. The daily allowance of school children for their sandwiches, softdrinks, etc. at school is also covered in this category.

Fuel, Light and Water

This refers to the total family consumption of fuel, light and water consumed during the reference period.

For a family who shares facilities with other households or whose total consumption includes both personal and business expenses, only an estimate of the family's personal consumption is reported.

Non-Durable Furnishings

This includes the value of all non-durable furnishings such as utensils and accessories (dinnerware, silverware, kitchen utensils, etc.) for family use acquired within the reference period including those bought/received by the family for use during special occasions.

If the non-durables are made at home for family use, the total value of the materials and the cost of labor paid are reported as the value of the finished products. However, the value of labor rendered by a household member free of charge is not included.

Durable Furniture and Equipment

This includes all durable furnishings or equipment such as pieces of furniture, garden tools, appliances, cars, etc. acquired on a cash basis during the reference period and intended for family use during ordinary days or during special occasions.

Those durable furniture and equipment purchased on installment basis during the reference period are also included. The reported total value is the total installments paid plus initial downpayment made on the item during the reference period.

Durable furniture made at home for family use are also reported in this part, hence, the value included is the value of the materials used and the cost of labor paid. Value of labor rendered by any member of the household free of charge is not included.

Taxes

The following forms of taxes were included in the survey:

1. Income Tax - refers to the tax levied on the income of a working person in pursuit of his occupation.

2. Real Estate Tax- refers to the tax imposed on real property of the family (e.g. house and lot for family use) in proportion to its value. This includes real estate tax levied on real property of the family used for personal purposes. Therefore, taxes levied on private properties of the family used solely for business purposes are excluded.

3. Car Registration, Toll Fees and Driver's License - this includes registration fees for motor vehicles used for private transport of the family, toll fees, etc.

4. Other Direct Taxes - direct taxes refer to taxes which are demanded from a taxpayer, who shoulders the burden of the tax; or tax which the taxpayer cannot shift to another. Specific examples are inheritance tax, alien certificate of registration (ACR), donor's tax, etc. Other taxes paid by the family such as custom's duties paid for personal effects bought from abroad, amusement tax and taxes paid as a consumer are also included.

Other Receipts

These are non-income receipts comprising of value at cost of real and personal property sold, loans from other households, business firms and government institutions, payments for loans granted to others and withdrawals from savings or business equity. Profits from sale of stocks and bonds, backpay and proceeds from insurance, net winningsfrom gambling, sweepstakes and lotteries and inheritance are also included as other receipts.

Other Disbursements

Other disbursements refer to non-family expenditures which may give an indication of savings on the part of the family. These include purchase or amortization of real property, payments of cash loan (principal), installments of appliances bought before 1991, installments for personal transport bought before 1991, loans granted to persons outside the household, amount deposited in banks or investments and major repair or construction of a house.

Urban/Rural Areas

The following guidelines used in the 1980 Census of Population and Housing in classifying urban areas were adopted:

1. In their entirety, all cities and municipalities having a population density of at least 1,000 persons per square kilometer.

2. Poblaciones or central districts of municipalities and cities which have a population density of at least 500 persons per square kilometer.

3. Poblaciones or central districts (not included in 1 and 2), regardless of the population size, which have the following:

a. Street pattern, i.e. network of streets in either parallel or right angle orientation;

b. At least six establishments (commercial, manufacturing, recreational and/or personal services);

c. At least three of the following:

i) A town hall, church or chapel with religious services at least once a month;

ii) A public plaza, park or cemetery;

iii) A public market or building where trading activities are called on at least once a week;

iv) A public building like school, hospital, puericulture and health center or library.

4. Barangays having at least 1,000 inhabitants which meet the conditions set forth in (3) above, and where the occupation of inhabitants is predominantly non-farming or non-fishing. All areas not falling under any of the above classifications are considered rural.

Medians and Averages; Rounding of Estimates

Medians and averages are computed from unrounded figures. All absolute figures are independently rounded to the nearest thousand; hence, the group total may not always be equal to the sum of the individual figures.

Percentages are computed from unrounded absolute figures and may not always add up to exactly 100.0 percent because of rounding. The total percent, however, is always shown as 100.0.

Gini Ratio (Gini coefficient)

It is a concentration ratio which is used to measure income inequality. It takes values from zero (0), representing complete equality of income, to one (1), representing complete inequality. Thus, the higher the value of the coefficient, the more unequal is the distribution of income among families within a given area under study.

The data users should bear in mind that the data presented in this report are the results of a sample survey and accordingly, are subject to sampling variations because observations are not taken from the entire population. Survey estimates may also be affected by non-sampling errors such as deliberate under or over-reporting of income and expenditures or reluctance on the part of the respondent to reveal their true levels of income/expenditures.

Moreover, considering that both cash and non-cash expenditures and income are gathered in the FIES, valuation of non-cash income and expenditure may pose some problems. The instructions are to use market prices prevailing in the locality for goods or services received as gifts and farm gate prices for goods consumed from own production. However, market prices may not be available for all items in the locality or market prices/farm gate prices may be highly variable for different localities.

Part I - Identification and Other Information

A. Identification of the Household

B. Other Information

1. Particulars About the Head of the Family

a. Sex
b. Age as of Last Birthday
c. Marital Status
d. Highest Grade Completed
e. Employment Status
f. Occupation
g. Kind of Industry/Business
h. Class of Worker

2. Other Information About the Household

a. Type of Household
b. Number of Family Members Enumerated
c. Number of boarders, helpers and other non-relatives
d. Number of Family Meembers who are Employed for Pay or Profit
e. Whether Spouse is Employed for Pay or Profit

Part II - Expenditures and Other Disbursements

A. Food, Alcoholic Beverages and Tobacco

A1. Food Consumed at Home

A1.1 Cereals and Cereal Preparations
A1.2 Roots and Tubers
A1.3 Fruits and Vegetables
A1.4 Meat and Meat Preparations
A1.5 Dairy Products and Eggs
A1.6 Fish and Marine Products
A1.7 Coffee, Cocoa and Tea
A1.8 Non-Alcoholic Beverages
A1.9 Food Not Elsewhere Classified

A2. Food Regularly Consumed Outside the Home
A3. Alcoholic Beverages
A4. Tobacco
A5. Food Items, Alcoholic Beverages and Tobacco Received as Gifts

B. Fuel, Light and Water, Transportation and Communication and Household Operation
C. Personal Care and Effects, Clothing, Footwear and Other Wear 
D. Education, Recreation and Medical Care
E. Furnishings and Equipment
F. Taxes
G. Housing, House Maintenance and Minor Repairs
H. Miscellaneous Expenditures

H1. Special Family Occasions
H2. Gifts and Contributions to Others

I. Other Disbursements

Part III - Income and Other Receipts

A. Salaries and Wages from Employment

B. Net Share of Crops, Fruits and Vegetables Producedor Livestock and Poultry Raised by Other Households

C. Other Sources of Income

C1. Cash Receipts, Gifts, Support, Relief and Other Forms of Assistance From Abroad
C2. Cash Receipts, Support, Assistanceand Relief From Domestic Source
C3. Rentals Received From Non-Agricultural Lands, Buildings, Spaces and Other Properties
C4. Interest
C5. Pension and Retirement, Workmen's Compensation and Social Security Benefits
C6. Net Winnings from Gambling, Sweepstakes and Raffle
C7. Dividends From Investment
C8. Profits From Sale of Stocks, Bonds and Real and Personal Property
C9. Backpay and Proceeds From Insurance
C10. Inheritance

D. Other Receipts

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