11 - CONSUMPTION AND INCOME

Dettagli: 

Contents

1. Provincial data

2. National and regional data

 

Data in this section refer to household income and consumption, and are derived from two sources:  Istituto Guglielmo Tagliacarne for data relating to the provinces of Lombardy and Istat for regional and national data.

 

1. Provincial data

Disposable income of consumer households

Istituto Guglielmo Tagliacarne calculates the disposable income of consumer households with reference to all the Italian provinces.

It is underscored that disposable income can be considered from the side of its formation or from the side of the uses. From the formation side it corresponds to the total income from labour and from capital of enterprises; from the uses side it corresponds to sum of consumption and savings.

This considered, it can be said that the disposable income corresponds to the total resources destined to satisfy individuals’ needs (present and future). The disposable income can therefore be considered as an aggregate that provides a synthesis indication of citizens’ welfare.

The calculation of the disposable income is calculated according to the place of residence. This means that the income in each province includes all financial flows relating to the population resident in the province, regardless of the fact that they could have been generated in other provinces. At the same time, the income of a given province excludes flows generated in the province by persons living elsewhere.

 

Disposable income according to household size

With the aim to improve the knowledge of the structure of the disposable income, Unioncamere and Istituto Tagliacarne analysed the issue also in relation of the size of households.

The total income in each province was broken down according to the size of households, considering the following categories: households composed of only one member, or two, or three, or four or five and more. Co-habitations are included in households with five or more members.

To calculate the disposable income of households according to the province of residence and the household size, the regional data on consumption expenditure per capita were converted into index numbers. Subsequently, the 20 regional scales thus obtained were adjusted in order to enable to calculate the 103 provincial scales.

It was considered that, at the province level, the behaviour of households with regard to income and expenditure was not very different from the regional average. In addition to this, the provincial distribution of households and their members was calculated considering three different groups of household members: the number of persons belonging to the active population, the number of persons retired from work, and the number of “other” household members (children, students, etc.).

 

Final domestic consumption

Final consumption represents the value of the goods and services used to satisfy directly human needs, either individual or collective.

Two different concepts are used: the expenditure on final consumption and the actual final consumption. The difference between the two concepts lies in the treatment adopted for some goods and services that are financed by the public administration or by non-profit institutions, but are supplied to households as social transfers in kind. These goods are included in the actual consumption of households but are excluded from the final expenditure (European System of Accounts, ESA95).

 

2. National and regional data

Disposable income of households in the Italian Regions

Regional estimates of household income are calculated by Istat and are coherent with the national estimates presented in the National Accounts. They are calculated separately for producer households and consumer households.

The methodology adopted for the calculation of the regional accounts of households is based on the following criteria:

  • complete conceptual coherence with the national values, for what concerns both the method for estimation and the sources used;
  • methodological coherence with the estimates of regional accounts relating to labour units, value added and earnings of employees;
  • where possible, the use of direct surveys on the territorial units;
  • where necessary, the use of regionalisation methods at the maximum level of detail allowed by the indicators used, which must ensure maximum correlation with the phenomenon observed.

For consumer households, the calculation of the disposable income is calculated according to the region of residence while for producer households it is calculated according to the region where the enterprise they manage is located.

 

Income and living conditions

Data on income and living conditions in Italy released by Istat are the result of the annual sample survey “Income and living conditions”. This survey is part of a EU project coordinated by Eurostat, which aims at producing and disseminating harmonised statistics on economic conditions and quality of life of EU citizens (EU SILC – European Union Statistics on Income and Living Conditions).

The data are used in the official reports on the economic and social situation of the EU. They are the basis for the calculation of the main indicators of inequality and social cohesion. The data are alto made available to researches for analyses on poverty and social exclusion.

In Italy the survey covers a sample of around 26,000 households (corresponding to around 70,000 people) living in around 800 municipalities of various sizes.

Information on income is collected both at the individual level and at the household level, through detailed questions that enable to measure separately its different components.

According to the harmonised definition at the EU level, the total net household income corresponds to the sum of the incomes deriving from work (employees and self-employment), from real and financial capital, from pensions and from other transfers received by households, after taxes and compulsory contributions.

Since the 2007 survey the harmonised definition comprises imputed rent, which is included by all the Member States that conduct the survey.

 

Household consumption

The survey on household income conducted by Istat is aimed at collecting information on the structure and value of consumption according the main social, economic and territorial characteristics of household. The definitions and the methodology comply with the most recent EU directives (with particular regard to the classification of consumption expenditure COICOP).

This survey provide quantitative and qualitative information of the living standards and consumption habits of the main categories of households.

The survey covers the expenditure of resident households for the purchase of goods and services intended for household consumption. This definition comprises:

  • goods produced in the household’s own garden or agricultural holding and consumed directly by the household itself;
  • goods and services provided by the employer to the employees as payment for work;
  • estimated rent of dwellings occupied by the owner or used free of charge.

Any other expense made by the household for purposes other than consumption is excluded from the survey (for example, the purchase of land or of a house, the payment of taxes, expenses related to the professional activity, etc.).

More specifically, the expenses surveyed are those relating to: food products, housing, furnishing, wearing apparel and footwear, healthcare, transportation, communications, leisure time, education, other goods and services. The value the s surveyed refer to the moment the good or service was purchased, regardless of the moment of actual utilisation or payment (in case of instalment credit).

The survey unit is the household. All persons that normally live with the household are considered as members of the household.

The survey is a sample survey and is conducted every month of the year. The theoretical sample is made up of around 28,000 households every year (corresponding to around 2,330 every month) living in the 228 municipalities that each month participate in the survey.

Data aggiornamento: 
December, 2010