Creating a 2000 IES-LFS Database in Stata



PROVIDE Project Technical Paper 2005:1

February 2005


Table of Contents

1. Introduction.................................................................................................................1

2. An overview of IES 2000 and the LFS 2000:2 ..........................................................1

2.1. Data files ...............................................................................................................1

2.1.1. IES 2000........................................................................................................1

2.1.2. LFS 2000:2....................................................................................................3

2.2. Sampling and weighting........................................................................................3

2.2.1.    Survey design.................................................................................................3

2.2.2.    Clustering and stratification .........................................................................4

2.2.3.    The ‘design effect’.........................................................................................5

2.2.4.    Unequal selection probabilities....................................................................6

2.2.5.    Weights in Stata.............................................................................................6

2.2.6.    Survey estimation in Stata.............................................................................8

2.3. Merging the IES 2000 and the LFS 2000:2 ........................................................10

2.3.1.    Overview......................................................................................................10

2.3.2.    Comparing IES 2000 and LFS 2000:2 data................................................11

2.4. IES 2000 data problems ......................................................................................16

2.4.1.    Literature review.........................................................................................16

2.4.2.    Comparing income and expenditure patterns with other data sources ......18

2.4.3.    Income and expenditure patterns by deciles...............................................23

3. Stata do-files to extract and reorganise data (ies2000.do).....................................27

3.1.   Reading in the data (readin.do)...........................................................................31

3.2.   Forming a household-level IES 2000 dataset (ies2000h.do) ..............................31

3.2.1.    Domestic workers (domworker.do).............................................................31

3.2.2.   Home production for home consumption (homegrown.do) ........................32

3.2.3.    Person-level data file (person.do)...............................................................34

3.2.4.    General income and expenditure file (general.do) .....................................36

3.2.5.    Cleaning the data (cleanup.do)...................................................................37

3.2.6.    Annualising and creating control totals (annualise.do and totals.do)........48

3.2.7.    Imputing ‘missing’ food and tax expenditure values..................................48

3.2.8.    Mapping income and expenditure categories (mapexp.do and mapinc.do)50

3.3.   Forming a person-level IES 2000 dataset (ies2000p.do) ....................................51

3.4.   Cleaning up education and factor data in the LFS 2000:2 (lfs2000_2.do)..........51

4. Further data analysis and adjustments...................................................................52

4.1.   Income and expenditure differences ...................................................................52

4.2.   Adjusting the data (adjustments.do)....................................................................56

4.2.1.    Merging the IES 2000 and LFS 2000:2 files (ieslfsmerge.do)....................58

4.2.2.    Adjusting transfer variables (transfers.do).................................................58

4.2.3.    Income and expenditure differences (fixing.do)..........................................59

4.2.4.    Scaling up the person-level factor income variables (inclabpscaling.do)..60

4.2.5.    Forming factor groups (newfact.do and newfact_old.do)...........................61

4.2.6. Forming variables for various possible household classifications.............62

4.3.   Printing SAM sub-matrices (print.do) ................................................................62

5.  Concluding remarks..................................................................................................63

6.  References ..................................................................................................................63

7.  Appendix....................................................................................................................64

7.1.   Wage and salary income from labour - data adjustments...................................64

7.2.   Household expenditure accounts.........................................................................66

7.3.   Creating an inter-household transfers matrix......................................................66

ii

© PROVIDE Project



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