Creating a 2000 IES-LFS Database in Stata

PROVIDE Project Technical Paper 2005:1

• There is no information that can be used to map incomes and receipts. The only
information that can be gathered from the IES 2000 is the total amount of transfers
received and the total amount of transfers paid during 2000. There is no information
about where transfer receipts come from or to whom payments are made. In a SAM
one aims to map these relationship between household groups

Section 4.2.1 elaborated on the process of correcting these problems. In this
appendix we explain how the actual inter-household transfers sub-matrix is actually
formed in MS Excel. As an example households are grouped into income deciles.⁴⁵ The
only household group information that we can gather from the IES 2000 is the total
transfer receipts and payments made by each household group. These values are shown
graphically in Figure 13. As expected transfer payments increase as one moves to a
higher income group, although there is a large dip in the 9^th decile. There is no clear
pattern as far as transfer receipts go. However, expressing transfer payments and
receipts as a percentage of income shows a more interesting picture. The value of
transfer receipts relative to the total household group income drops significantly as one
moves to the higher incomes deciles (see Figure 14).

Figure 13: Total value of transfer payments and receipts by income decile

—T—Total transfer
payments

—■—Total transfer
receipts

⁴⁵ As before ‘income’ is defined as the maximum of total income and total expenditure. Hence income
and expenditure deciles are the same.

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