﻿ EU statistics on income and living conditions (EU-SILC) methodology - durables - Statistics Explained

# EU statistics on income and living conditions (EU-SILC) methodology - durables

This article is part of a set of articles describing the methodology applied for the computation of the statistical indicators pertinent to the subject area of Durables (ilc_mddu) within the overall domain of Income and living conditions. For these indicators, the article provides a methodological and practical framework of reference. The indicators relevant to the subject area of durables concern the following:

• Enforced lack of a telephone
• Enforced lack of a colour TV
• Enforced lack of a computer
• Enforced lack of a washing machine
• Enforced lack of a personal car
• Enforced lack of new clothes (to replace worn-out clothes)
• Enforced lack of internet connection at home (for personal use)

Moreover, since the indicators are of multidimensional structure and can be analysed simultaneously along several dimensions, the separate datasets providing these indicators along with the different combinations of dimensions are also presented.

### Description

Each one of the indicators of the enforced lack of durables refers to the percentage of persons in the total population lacking one of the following durables because they cannot afford it:

• a telephone
• a colour TV
• a computer
• a washing machine
• a personal car
• new clothes with the purpose of replacing worn-out clothes
• an internet connection at home (for personal use)

### Statistical population

The statistical population consists of all persons living in private private households. Persons living in collective households and in institutions are generally excluded from the target population.

People with missing values for equivalised disposable or any of the dimensions along with the indicators are presented are excluded from calculations.

### Reference period

All indicators are collected and disseminated on an annual basis and refer to the survey year. The reference period for all dimensions along with the indicators are disseminated is the survey year, except for age, income and household type. As far as age is concerned, it refers to the age of the respondent at the end of the income reference period, based on which the household type is also computed. Income reference period for income variables – with the exceptions of Ireland (moving income reference period) and the UK (survey year). Additionally, the information about having a telephone, a colour TV, telephone, washing machine, and car refers to the survey year.

### Unit of measurement

The indicators presented, relevant to durables are given as a percentage.

### Dimensions

Each dataset provides the indicator along with the Geopolitical entity and time and the along with the following dimensions: household type and income group (total, below 60 % of median equivalised income, above 60 % of median equivalised income).

### Calculation method

1. Enforced lack of a telephone:

The indicator regarding the enforced lack of a telephone broken down by the relevant dimensions (k) ￼$(LACK\_PHONE_{at\_k})$ is calculated as the percentage of people in each k who cannot afford a phone (HS070=2) over the total population in (k).

The weight variable used is the Adjusted Cross-Sectional Weight (RB050a).

$LACK\_PHONE_{at\_k}=\frac{\sum \limits_{\forall i\;where\;HS070=2\;at\_k} RB050a_i}{\sum \limits_{\forall i\_at\_k} RB050a_i}\times 100$

With regard to the calculation of the enforced lack of a telephone, the following methodological issues should be taken into consideration:

• Possession of the item does not necessarily imply ownership: the item may be rented, leased or provided on loan.
• In the case of mobile telephones, the household should be considered to possess the item if any member possesses it.

2. Enforced lack of a colour TV:

The indicator concerning the enforced lack of a colour TV broken down by the relevant dimensions (k) ￼$(LACK\_CL\_TV_{at\_k})$ is calculated as the percentage of people in each k who cannot afford a colour TV (HS080=2) over the total population in (k).

The weight variable used is the Adjusted Cross-Sectional Weight (RB050a).

$LACK\_CL\_TV_{at\_k}=\frac{\sum \limits_{\forall i\;where\;HS080=2\;at\_k} RB050a_i}{\sum \limits_{\forall i\_at\_k} RB050a_i}\times 100$

With regard to the calculation of the enforced lack of a colour TV, the following methodological issues should be taken into consideration:

• Possession of the item does not necessarily imply ownership: the item may be rented, leased or provided on loan.
• In the case of a colour television, the household is considered to possess it if any member possesses it.

3. Enforced lack of a computer:

The indicator concerning the enforced lack of a computer broken down by the relevant dimensions (k) ￼$(LACK\_COMPUTER_{at\_k})$ is calculated as the percentage of people in each k who cannot afford a computer (HS090=2) over the total population in (k).

The weight variable used is the Adjusted Cross-Sectional Weight (RB050a).

$LACK\_COMPUTER_{at\_k}=\frac{\sum \limits_{\forall i\;where\;HS090=2\;at\_k} RB050a_i}{\sum \limits_{\forall i\_at\_k} RB050a_i}\times 100$

With regard to the calculation of the enforced lack of a computer, the following methodological issues should be taken into consideration:

• Possession of the item does not necessarily imply ownership: the item may be rented, leased or provided on loan.
• In the case of a computer, the household is considered to possess it if any member possesses it.
• A computer includes a portable computer or a desktop computer, but does not include machines dedicated to video games but without any broader functionality.
• If a computer is provided ONLY for work purpose, this does not count as possessing the item.

4. Enforced lack of a washing machine:

The indicator concerning the enforced lack of a washing machine broken down by the relevant dimensions (k) ￼$(LACK\_WASHING\_MACHINE_{at\_k})$ is calculated as the percentage of people in each k who cannot afford a washing machine (HS100 =2) over the total population in (k).

The weight variable used is the Adjusted Cross-Sectional Weight (RB050a).

$LACK\_WASHING\_MACHINE_{at\_k}=\frac{\sum \limits_{\forall i\;where\;HS100=2\;at\_k} RB050a_i}{\sum \limits_{\forall i\_at\_k} RB050a_i}\times 100$

With regard to the calculation of the enforced lack of a washing machine, the following methodological issues should be taken into consideration:

• Possession of the item does not necessarily imply ownership: the item may be rented, leased or provided on loan.
• In the case of a washing machine, the household is considered to possess it if any member possesses it.

5. Enforced lack of a personal car:

The indicator concerning the enforced lack of personal car broken down by the relevant dimensions (k) ￼$(LACK\_CAR_{at\_k})$ is calculated as the percentage of people in each k who cannot afford a personal car (HS110=2) over the total population in (k).

The weight variable used is the Adjusted Cross-Sectional Weight (RB050a).

$LACK\_CAR_{at\_k}=\frac{\sum \limits_{\forall i\;where\;HS110=2\;at\_k} RB050a_i}{\sum \limits_{\forall i\_at\_k} RB050a_i}\times 100$

With regard to the calculation of the enforced lack of a personal car, the following methodological issues should be taken into consideration:

• Possession of the item does not necessarily imply ownership: the item may be rented, leased or provided on loan.
• In the case of a car, the household is considered to possess it if any member possesses it.
• A company car or van, which is available to the household for private use, counts as possessing the item. A car or van provided ONLY for professional purpose, should not be considered as possessing the item.
• Motorcycles are excluded.

6. Enforced lack of new clothes (to replace worn-out clothes):

The indicator concerning the enforced lack of new clothes with the purpose to replace worn-out clothes broken down by the relevant dimensions (k) $(LACK\_NEW\_CLOTHES_{at\_k})$ is calculated as the percentage of people in each (k) who cannot afford to replace worn-out clothes (PD020=2) over the total population in (k). The weight variable used is the Adjusted Cross-Sectional Weight (RB050a).

$LACK\_NEW\_CLOTHES _{at\_k}=\frac{\sum \limits_{\forall i\;where\;PD020=2\;at\_k} RB050a_i}{\sum \limits_{\forall i\_at\_k} RB050a_i}\times 100$

With regard to the calculation of the enforced lack of new clothes with the purpose of replacing worn-out items, the following methodological issues should be taken into consideration:

• The focus of this question relies on whether if the respondent is able to the replace worn-out clothes by the purchase of new ones, excluding second-hand items.
• The term 'worn-out clothes' does not include items that are in good condition but that are out of fashion, e.g. suits, winter coats, dresses, etc.

7. Enforced lack of internet connection at home (for personal use):

The indicator concerning the enforced lack of internet access at home for personal use by the relevant dimensions (k) $(LACK\_INTERNET\_PH_{at\_k})$ is calculated as the percentage of people in each (k) who cannot afford to have internet access for personal use at home (PD080=2) over the total population in (k). The weight variable used is the Adjusted Cross-Sectional Weight (RB050a).

$LACK\_INTERNET\_PH_{at\_k}=\frac{\sum \limits_{\forall i\;where\;PD080=2\;at\_k} RB050a_i}{\sum \limits_{\forall i\_at\_k} RB050a_i}\times 100$

With regard to the calculation of the enforced lack of internet connection for personal use at home, the following methodological issues should be taken into consideration:

• Some examples gadgets in which the respondent can use internet at home are mobile phone ‘smartphone’, tablets, video games, laptop, pc, etc.
• Internet activities for personal use can be the use of social networks, blogs, emails, internet banking, buying or selling products online, video watching, etc.
• The respondent is considered to have personal accessibility to internet connection, only if his needs for personal use are fulfilled by his current connection.

Moreover, there are some methodological limitations that pertain to the following dimensions accompanying the indicators:Household type.

### Main concepts

For the production of the indicators relevant to the subject area of durables, the variables listed below are also involved in computations:

Other concepts that should be taken into consideration are the following:

• Enforced lack implies that the item is something that the household would like to have, but cannot afford.
• No telephone (including mobile phone) (HS070) refers to whether the household does not have a telephone because it cannot afford it (enforced lack) or for other reasons.
• No colour TV (HS080) refers to whether the household does not have a colour TV because it cannot afford it (enforced lack) or for other reasons.
• No computer (HS090) refers to whether the household does not have a computer because it cannot afford it (enforced lack) or for other reasons.
• No washing machine (HS100) refers to whether the household does not have a washing machine because it cannot afford it (enforced lack) or for other reasons.
• No car (HS110) refers to whether the household does not have a car because it cannot afford it (enforced lack) or for other reasons.

### SAS scripts

SAS programming routines developed for the computation of the EU-SILC datasets providing the indicators on economic strain along with the different dimensions are listed below.

Dataset SAS program file
Persons who cannot afford a telephone (ilc_mddu01) _mddu01.sas
Persons who cannot afford a colour TV (ilc_mddu02) _mddu02.sas
Persons who cannot afford a computer (ilc_mddu03) _mddu03.sas
Persons who cannot afford a washing machine (ilc_mddu04) _mddu04.sas
Persons who cannot afford a personal car (ilc_mddu05) _mddu05.sas
Persons who cannot afford to replace worn-out clothes by some new (not second-hand) ones by age, sex and income group (ilc_mddu06a) _mddu06.sas
Persons who cannot afford to replace worn-out clothes by some new (not second-hand) ones by employment status and income quintile (ilc_mddu06b) _mddu06.sas
Persons who cannot afford internet connection for personal use at home by age, sex and income group (ilc_mddu07a) _mddu07.sas
Persons who cannot afford internet connection for personal use at home by employment status and income quintile (ilc_mddu07b) _mddu07.sas
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