PROVIDE Project Technical Paper 2005:1
the IES 2000. In SUT 2000 the national-level FSIM is derived from the System of National
Accounts (SNA), but no breakdown is given as to how individual household budgets are
affected by such charges (SSA, 2003b). In order to incorporate FSIM at a household level the
following assumptions are thus made:
February 2005
• Expenditure side: 10% of interest payments made will be regarded as FSIM expenses.
These interest payments include the interest component of the monthly installment on a
bond (variable P0303Q050102) and other interest on finance (variable P2104Q0102).
• Income side: Since interest received would have been higher if FSIM were zero,
household-level interest receipts (variable P2401Q05h) are increased by 10%. This
additional income is also added to the expenditure category FSIM.
The net effect of this change is that total income and expenditure are both increased by an
amount equal to 10% of interest receipts. This represents an average increase in
expenditure/income of less than 0.01%, so the effect is minimal.
Various income items are also mapped to a number of income groups or sources (see
mapinc.do). These are income from labour (variable inclab), income from gross operating
surplus (variable incgos), income from transfers from other households (variable inctrans),
income from corporations (variable inccorp), transfers from government (variable incgov)
and other income (variable incother), which is again netted out. Variable inchphc represents
income from the sale of home produce or livestock. If this information is not required
separately it is simply added to incother.
3.3. Forming a person-level IES 2000 dataset ( ies2000p.do )
Very little remains to be done to form a person-level IES 2000 database. Do-file ies2000p.do
starts with the newly formed ies2000h.dta and keeps whichever variables are relevant to the
user. This shortened version of the file is saved as ies2000hshort.dta. It then opens person.dta
and merges it with ies2000short.dta. The merge results are stored in variable merge2. As was
the case previously when general.dta and personh.dta were merged, there are 46 observations
in ies2000h.dta that do not have a matching hhid in person.dta. The data file is saved as
ies2000p.dta.
3.4. Cleaning up education and factor data in the LFS 2000:2 ( lfs2000 2.do )
The LFS 2000:2 data file, which was created in do-file readin.do, contains education, factor
and activity data that needs to be cleaned up before it becomes usable. Sub-do-file
education.do creates a variable called education that groups persons in the LFS 2000:2 into
six education categories, namely (1) none or pre-primary, (2) primary, (3) lower secondary
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