Creating a 2000 IES-LFS Database in Stata



PROVIDE Project Technical Paper 2005:1

February 2005


PROVIDE (____-b). "The Economic Contribution of Home Production for Home Consumption,"

PROVIDE Background Paper Series, Forthcoming.

SARB (2002): Quarterly Bulletin, September 2002, Pretoria: South African Reserve Bank.

Simkins, C. (2003). "A Critical Assessment of the 1995 and 2000 Income and Expenditure Surveys as
Sources of Information on Incomes,"
Mimeo.

SSA (1998): The People of South Africa: Population Census 1996, Pretoria: Statistics South Africa.

SSA (2002a): Income and Expenditure Survey 2000, Pretoria: Statistics South Africa.

SSA (2002b): Labour Force Survey September 2000, Pretoria: Statistics South Africa.

SSA (2003a): Census 2001, Pretoria: Statistics South Africa.

SSA (2003b): Final supply and use tables, 2000: an input-output framework, Pretoria: Statistics South
Africa.

StataCorp (2001). Statistical Software: Release 7.0. Stata Corporation: College Station, TX.

Van der Berg, S., Nieftagodien, S. and Burger, R. (2003a). "Consumption patterns and living standards of
the black population in perspective."
Paper presented at the Biennial Conference of the
Economic Society of South Africa
, Somerset West.

Van der Berg, S., Nieftagodien, S. and Burger, R. (2003b). "Consumption Patterns of South Africa's
Rising Black Middle-Class: Correcting for Measurement Errors."
Paper presented at the CSAE
conference on Poverty Reduction, Growth and Human Development in Africa, Oxford, March
2004
,

Woolard, I. and Leibbrandt, M. (2001). "Measuring Poverty in South Africa." In Fighting Poverty.
Labour Markets and Inequality in South Africa
, edited by Bhorat, H., Leibbrandt, M., Maziya,
M., Van der Berg, S. and Woolard, I. Cape Town: UCT Press.

7. Appendix

7.1. Wage and salary income from labour - data adjustments

Section 2.3.2 compared the LFS 2000:2 and IES 2000 labour income data. This section
describes how the ‘combined’ labour income variable and its related factors and
activities variables were created. The combined variable was subsequently adjusted
(scaled upwards) so that total income from labour in the person-level file
(
ieslfsmerge.dta) matches the total income from labour (inclab) in the household-level
file (
ies2000h.dta). Although the person- and household-level labour income data did
match originally by construction, some adjustments were made to the household-level
variable
inclab in do-file fixing.do. This necessitated the changes, and hence two
person-level variables for income from labour exist, namely
inclabp_old and
inclabp_new.44

Initially, when only LFS data was used for the factor-related sub-matrices, there
were various upper and lower outliers that caused total wages within the SAM sub-
matrices to be biased. These outliers in the LFS were also cause for the large
differences in average wages reported in the LFS and the IES. Because of this it was
necessary to investigate the issue further. As a first adjustment it was assumed that if an

44 Either one of these variables may be used to form sub-matrices. It doesn’t make much of a difference
since the patterns of income distribution remain largely the same.

64

© PROVIDE Project



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