Creating a 2000 IES-LFS Database in Stata



PROVIDE Project Technical Paper 2005:1
used in various other SAM sub-matrices. Also included in SAMDATA1 are all the
income-side variables (income from labour, GOS, transfers, etc.) for each household
group. All incomes and expenditures are weighted using the household weights from the
IES 2000.

February 2005


Table SAMDATA2 is the household-factor sub-matrix, which cross-tabulates
variables household groups and factor groups, with total income from labour in the
cells. Here it is necessary to choose between the ‘old’ and ‘new’ factor income and
occupation groups. This table represents the flow of resources from factors to
households, which forms part of the functional income distribution. Table
SAMDATA3
cross-tabulates factors and (activities), and represents the value-added sub-matrix of the
SAM. In addition to choosing the factor income and occupation groups, the ‘old’ or
‘new’ activity variable should also be specified.

5. Concluding remarks

This paper discussed in detail the IES 2000 and LFS 2000:2 datasets and the process
followed to correct errors, make adjustments to the data and merge the two datasets.
The final version of the IES 2000 created in Stata is perfectly balanced in the sense that
total expenditures equal total receipts for every household. Although not too many
problems were encountered when merging the IES 2000 and LFS 2000:2, one problem
that remains is the incompatibility between the LFS and IES labour income data. The
LFS data suggests much higher average wages than reported in the IES. This means that
the levels and distribution of income from labour in the IES is different from that of the
LFS. Some more work may have to be done to establish how large the effect is from
switching from the IES to the LFS as the main source of factor-related data.

6. References

Deaton, A. (1997). The Analysis of Household Surveys. A Microeconometric Approach to Development
Policy
. John Hopkins University Press: London.

Hoogeveen, J.G. and Ozler, B. (2004): "Not Separate, Not Equal. Poverty and Inequality in Post-
Apartheid South Africa." World Bank.

McDonald, S. and Punt, C. (2001): "A Social Accounting Matrix for the Western Cape." Department of
Agriculture, Western Cape Government.

Poswell, L. (2003): "Comments on Income and Expenditure Survey 2000." Development Policy Research
Unit.

PROVIDE (2003a). "Creating a 1995 IES Database in STATA," PROVIDE Technical Paper Series,
2003:1.

PROVIDE (2003b). "Creating a 1995 OHS and a Combined OHS-IES Database in STATA," PROVIDE
Technical Paper Series,
2003:2.

PROVIDE (2005). "Forming Representative Household Groups in a SAM," PROVIDE Technical Paper
Series,
2005:2.

PROVIDE (____-a). "Compiling a Social Accounting Matrix for South Africa: 2000," PROVIDE

Technical Paper Series, Forthcoming.

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© PROVIDE Project



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