Labour costs survey 2008 and 2012 - NACE Rev. 2 activity (lcs_r2)

National Reference Metadata in ESS Standard for Quality Reports Structure (ESQRS)

Compiling agency: Statistics Iceland

Time Dimension: 2012-A0

Data Provider: IS1

Data Flow: LCS_ESQRS_A


Eurostat metadata
Reference metadata
1. Contact
2. Statistical presentation
3. Statistical processing
4. Quality management
5. Relevance
6. Accuracy and reliability
7. Timeliness and punctuality
8. Coherence and comparability
9. Accessibility and clarity
10. Cost and Burden
11. Confidentiality
12. Comment
Related Metadata
Annexes (including footnotes)
 



For any question on data and metadata, please contact: EUROPEAN STATISTICAL DATA SUPPORT

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1. Contact Top
1.1. Contact organisation

Statistics Iceland

1.2. Contact organisation unit

Wage Statistics

1.5. Contact mail address

Borgartuni 21A

IS-150 Reykjavik

Iceland


2. Statistical presentation Top
2.1. Data description

The data for LCS 2012 is taken from the ISWEL survey (Icelandic Survey on Earnings, Wages and Labour cost). The data for private sector and municipalities is based on a survey sample. Employees working in the central government or its institutions are all included.

2.2. Classification system

Not available.
New concept added with the migration to SIMS 2.0.
Information (content) will be available after the next collection.

2.3. Coverage - sector

Not available.
New concept added with the migration to SIMS 2.0.
Information (content) will be available after the next collection.

2.4. Statistical concepts and definitions

Not available.
New concept added with the migration to SIMS 2.0.
Information (content) will be available after the next collection.

2.5. Statistical unit

Not available.
New concept added with the migration to SIMS 2.0.
Information (content) will be available after the next collection.

2.6. Statistical population

Not available.
New concept added with the migration to SIMS 2.0.
Information (content) will be available after the next collection.

2.7. Reference area

Not available.
New concept added with the migration to SIMS 2.0.
Information (content) will be available after the next collection.

2.8. Coverage - Time

Not available.
New concept added with the migration to SIMS 2.0.
Information (content) will be available after the next collection.

2.9. Base period

Not available.
New concept added with the migration to SIMS 2.0.
Information (content) will be available after the next collection.


3. Statistical processing Top

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3.1. Source data

Full coverage data was received for employees working for the central government and its institutions. All employees working in institutions with 10 or more employees are included.

3.2. Frequency of data collection

[Not requested]

3.3. Data collection

[Not requested]

3.4. Data validation

[Not requested]

3.5. Data compilation

[Not requested]

3.6. Adjustment

[Not requested]


4. Quality management Top
4.1. Quality assurance

Not available.
New concept added with the migration to SIMS 2.0.
Information (content) will be available after the next collection.

4.2. Quality management - assessment

[Not requested]


5. Relevance Top

Iceland has delivered the Labour Cost Survey (LCS) survey data four times. It has not been examined who the users of the data are but the most likely users, along with Eurostat, are institutions, analysts, news media and the public.

5.1. Relevance - User Needs

The LCS data is used by Eurostat. In addition, part of the data is published on Statistics Iceland’s website.

5.2. Relevance - User Satisfaction

User satisfaction has not been measured.

5.3. Completeness

For the LCS 2012 most variables are accounted for; however a number of optional variables were excluded in the Icelandic results. These are:

     ▪ D.11141 Company products

     ▪ D.11142 Staff housing

     ▪ D.11143 Company cars

     ▪ D.11144 Stock options and share purchase schemes

     ▪ D.11145 Other

     ▪ D.1221 Guaranteed remuneration in the event of sickness

     ▪ D.1222 Employers' imputed social contributions for pensions and health care

     ▪ D.1223 Payments to employees leaving the enterprise

     ▪ D.1224 Other imputed social contributions of the employer

 

Information for three mandatory variables is missing. These are:

     ▪ D.2 Vocational training costs

     ▪ D.3 Other expenditure paid by the employer

     ▪ D.5 Subsidies received by the employer

5.3.1. Data completeness - rate

The Icelandic LCS 2008 includes the economic activities C, D,E, F, G, H, I, J, K, M, O, P, Q and R, which cover about 90% of the labour market (B-S) according to the Pay as You Earn data (PAYE). Economic activities I and M are not fully covered and therefore flagged. The economic activities L, N and S are missing in LCS 2012 for Iceland. The economic activity B is only a remote part of the Icelandic economy.


6. Accuracy and reliability Top

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6.1. Accuracy - overall

The LCS 2012 data is based on the ISWEL survey which complies with most mandatory variables drawn up in the commission regulation (EC) no 1737/2005, and subsidiary commission regulations.

Incoherence can occur due to some specific characteristics of the Icelandic labour market.

▪ In Iceland each legal unit has a unique identification number and the business unit is equated to be the same as the legal unit.

▪ The local unit is defined on the basis of the identification number (the same as above) and NACE 5-digit level as in previous submission.

▪ When defining full-time/part-time employees all working hours are considered. In some industries a considerable part of the employees work mainly (and sometimes only) on overtime rates, as their main working hours are during nights and weekends. Thus, all hours are used when defining full-time employees.

▪ The grossing up factor for the local unit is based on the number of local units in NACE sections on a 2-digit level.

 

6.2. Sampling error

The ISWEL survey is subject to possible errors due to the sampling methods and/or quality of the PAYE (Pay as You Earn) data which the population is based on.

The ISWEL sample is a stratified cluster sample, where the sample unit is the business unit and the observation unit is the employee. The target population contains all business units with 10 or more employees. The population frame is based on monthly PAYE data. The PAYE register reflects the sum of the wages reported to the tax authorities. The population is stratified in sections and subsections according to NACE Rev. 2. Business units with more than A/m employees are selected with a probability of 1 (where A is the number of employees in the stratum and m is the number of business units to be selected from the stratum). For the rest of the population, a simple random sample is selected from each stratum.

Full coverage data was received for employees working for the central government and its institutions. All employees working in institutions with 10 or more employees are included.

6.2.1. Sampling error - indicators

For the municipalities, a sample is drawn as to achieve a certain proportion for each of the country's regions. The target population contains also municipalities with 10 or more employees. The coefficients of variation (CV) for the population as a whole can be seen in table 1.

The coefficients of variation (CV) broken down according to the structure of LCS for Annual labour costs are listed in tables 2 and 3.

The coefficients of variation (CV) broken down according to the structure of LCS for Hourly labour cost are listed in tables 4 and 5.



Annexes:
Table 1 Coefficient of variation for Annual and Hourly labour cost for population
Table 2 Coefficient of variation for Annual labour cost by NACE Rev. 2 sections
Table 3 Coefficient of variation for Annual labour cost by size class
Table 4 Coefficient of variation for Hourly labour cost by NACE Rev. 2 sections
Table 5 Coefficient of variation for Hourly labour cost by size class
6.3. Non-sampling error

Some non-sampling errors can occur in the data.

6.3.1. Coverage error

The Icelandic LCS 2012 includes the economic activities C, E, F, G, H, I, J, K, M, O, P, Q and R. Those economic activities cover about 90% of the Icelandic labour market for business units with 10 or more employees according to the PAYE register. Economic activities M and I are not fully covered and therefore flagged. Economic activities L, N and S are not yet included in the ISWEL survey and therefore are those activities are missing. The economic activity B is a remote part of the Icelandic economy.
The ISWEL sample is based on the PAYE register and therefore errors in NACE classification in the PAYE register can have an impact on the coverage in the survey.

6.3.1.1. Over-coverage - rate

The sampling frame is built on the PAYE register, which in turn is the target population. Thus over-coverage is non-existing.

6.3.1.2. Common units - proportion

[Not requested]

6.3.2. Measurement error

Some background variables for employees in the ISWEL were incomplete, for example length of service within the business unit and the employees’ entitled vacation days. This was estimated with the PAYE register.

6.3.3. Non response error

Business units are obligated according to Icelandic law to participate in the survey if requested. Henceforth, response rate is very high, approximately 95%-98%. For the LCS 2012 data the response rate was not examined specifically. Normally, after a data collection starts from a business unit, an enterprise usually takes part in the survey for a long time and only drops out in case of breakdown or merges with another enterprise. Hence enterprises stay in the survey for a continuous period of time and non-responses are rare.

6.3.3.1. Unit non-response - rate

[Not requested]

6.3.3.2. Item non-response - rate

[Not requested]

6.3.4. Processing error

The ISWEL data is collected directly from the software each business unit uses for calculating wages. Taking advantage of data collection by direct access, it minimises the bias caused by recording.

6.3.4.1. Imputation - rate

-

6.3.5. Model assumption error

Not applicable.

6.4. Seasonal adjustment

[Not requested]

6.5. Data revision - policy

[Not requested]

[Not requested]

6.6. Data revision - practice

[Not requested]

6.6.1. Data revision - average size

[Not requested]


7. Timeliness and punctuality Top

The ISWEL survey is based on a lengthy tradition of collecting data directly from the software each company uses for calculating wages. Every month, each business unit sends a text file containing detailed information on earning structure and cost items, together with background data on the individuals and the business units. Information is collected for all employees in the business unit. Thus, all data retrieved from the ISWEL survey is collected simultaneously.

7.1. Timeliness

The Icelandic LCS 2012 tables were first delivered to Eurostat in June 2014 and national publication was made 17 December 2014.

7.1.1. Time lag - first result

[Not requested]

7.1.2. Time lag - final result

[Not requested]

7.2. Punctuality

A separate survey was not conducted for the LCS since the Icelandic LCS is based on an ongoing monthly survey, the ISWEL survey. The LCS data were available on time and the tables of the Icelandic LCS 2012 were sent to Eurostat in end of June 2014 and re-sent in November 2014.

7.2.1. Punctuality - delivery and publication

[Not requested]


8. Coherence and comparability Top

-

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8.1. Comparability - geographical

Iceland has only one region and therefore LCS data are provided only at NUTS 1 level.

8.1.1. Asymmetry for mirror flow statistics - coefficient

[Not requested]

8.2. Comparability - over time

Statistics Iceland has conducted the LCS four times; in 2000, 2004, 2008 and 2012. The sample size and coverage has grown with each survey.

 

The ISWEL survey does not yet fully cover the Icelandic labour market. Data for NACE Rev. 2 economic activities L, N & S are missing in LCS 2012. Economic activities I and M are not fully covered and thus, aggregated data for those activities are flagged. In addition NACE 2-digit levels 05, 06, 07, 09 & 12 are insignificant parts of the Icelandic economy. Comparability between LCS surveys is listed in table 6.



Annexes:
Table 6 List of economic activities covered in Labour Costs Survey by Statistics Iceland
8.2.1. Length of comparable time series

[Not requested]

8.3. Coherence - cross domain

Coherence with LFS

The average actual hours worked by employee in the main job per year of the Labour Force Survey (LFS) has been estimated as the annual average from the quarterly data of the actual hours worked in the main job in the reference week in 2012 for employees. LFS weekly figures were multiplied by 52 weeks in the year. The results are shown in table 7 below.

All data for economic activities in table 7 are lower in the LCS 2012 than the LFS. This discrepancy can be explained by certain differences in the methodology of the surveys and a different sample design. LFS is a household survey (question survey) whereas LCS is based on information of administrative payroll system data from the business units. In the LCS there were only enterprises with 10 employees or more whereas the LFS figures include all enterprises.

 

Coherence with SBS

Data from Structure of Business Statistics (SBS) is not available.

 

Coherence with LCI

Data for Labour Cost Index (LCI) is not available for NACE Rev. 2.

[Not requested]



Annexes:
Table 7 Number of hours actually worked per employee in the LCS and LFS in Iceland
8.4. Coherence - sub annual and annual statistics

[Not requested]

8.5. Coherence - National Accounts

The table contains a comparison with the National Accounts (NA) compensation of employees. The Coherence in table 8 between NA and LCS is based on economic activities C, D, E, F, G, H, J, K, O, P, Q & R. In the LCS there were only enterprises with 10 or more employees whereas all firms are taken into account in the NA data.

The fact that the LCS does not include small enterprises is apparent in the economic activity of Constructions F. As seen in table 8, the difference in the service industries, B to E and G to N is somewhat less.

The difference is relatively small between L to S, since the LCS 2012 data fully covers employees working for the central government with 10 employees or more.



Annexes:
Table 8 Compensation of employees, per employee: D1 in LCS, D1 National Accounts in Iceland
8.6. Coherence - internal

[Not requested]


9. Accessibility and clarity Top

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9.1. Dissemination format - News release

Users were informed via news on the Statistics Iceland website.

9.2. Dissemination format - Publications

National publication was 17 December 2014.

9.3. Dissemination format - online database

Results from the LCS data, along with metadata, are published on Statistics Iceland website www.statice.is.

9.3.1. Data tables - consultations

[Not requested]

9.4. Dissemination format - microdata access

[Not requested]

9.5. Dissemination format - other

Non-applicable.

9.6. Documentation on methodology

-

9.7. Quality management - documentation

[Not requested]

9.7.1. Metadata completeness - rate

[Not requested]

9.7.2. Metadata - consultations

[Not requested]


10. Cost and Burden Top

[Not requested]


11. Confidentiality Top

-

11.1. Confidentiality - policy

[Not requested]

11.2. Confidentiality - data treatment

[Not requested]


12. Comment Top

-


Related metadata Top


Annexes Top