1. Methodology
  2. Taxes and benefits
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The Eurosystem household finance and consumption survey: A new underlying database for EUROMOD

  1. Sarah Kuypers  Is a corresponding author
  2. Francesco Figari  Is a corresponding author
  3. Gerlinde Verbist  Is a corresponding author
  1. University of Antwerp, Belgium
  2. University of Insubria, ISER University of Essex, CeRP and DONDENA, Italy
Research article
Volume 9(3) Winter 2016
Cite this article as: S. Kuypers, F. Figari, G. Verbist; 2016; The Eurosystem household finance and consumption survey: A new underlying database for EUROMOD; International Journal of Microsimulation; 9(3); 35-65. doi: 10.34196/ijm.00142
3 figures and 9 tables

Figures

Figure 1
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Average disposable income by deciles according to EM-HFCS and EM-SILC, Belgium, 2009.

Source: Own calculations based on EM-HFCS and EM-SILC.

Notes: Decile groups based on disposable income equivalised using the modified OECD equivalence scale, all individuals considered. All figures are derived using sample weights.

Figure 2
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Joint distribution of disposable income and net wealth, Belgium (2009) and Italy (2010).

Source: Own calculations based on EM-HFCS.

Notes: Quartile groups based on disposable income or net wealth equivalised using the modified OECD equivalence scale, all individuals considered. All figures are derived using sample weights.

Figure 3
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Distribution of income poor across wealth vigintiles, Belgium (2009) and Italy (2010).

Source: Own calculations based on EM-HFCS.

Notes: Vigintile groups based on net wealth equivalised using the modified OECD equivalence scale, all individuals considered. All figures are derived using sample weights.

Tables

Table 1

Comparison of gross income components HFCS and EU-SILC.

Category HFCS EU-SILC
Income from work Cash & near cash employee income Cash & near cash employee income
- - - Non-cash employee income
Self-employment income Self-employment income
Capital income Rental income from real estate property Rental income from real estate property
Income from financial investments Aggregate variable including interests, dividends and profit from capital investments in unincorporated business
Income from private business other than self-employment
Pension income Aggregate variable of public pensions including old-age pensions, survivor pensions, disability pensions Old-age benefits
Survivor benefits
Occupational & private pensions Private pensions
Social transfers Unemployment benefits Unemployment benefits
Aggregate variable of other social transfers including family/children related allowances, housing allowances, education allowances, minimum subsistence, other social benefits Family/children related allowances
Housing allowances
Education-related allowances
Sickness benefits
Social exclusion not elsewhere classified
Private transfers Regular private transfers Regular private transfers
Other income - - - Income received by people under 16

  1. Source: HFCN (2013) & Eurostat (2014)

Table 2

Comparison of available information in HFCS and EU-SILC.

Belgium (2009) Italy (2010)
EUROMOD based on HFCS EUROMOD based on EU-SILC EUROMOD based on HFCS EUROMOD based on EU-SILC
Main residence Tax on property
Size in square meters Number of rooms
Property value at time of acquisition, way and year of acquiring property, percent of ownership -
Self-assessed current price value -
Mortgages, up to 3: amount borrowed and still due, year and length of the loan, current interest rate, monthly amount of payment (capital + interests). More than 3: aggregate amount still due and monthly amount payment Missing: number of months paying capital + interests in a year Annual amount of interests paid on mortgage(s) Refinement of tax reliefs for mortgage interest repayments
Other real estate properties Tax on property
Up to 3: self-assessed current price value, property type, percent ownership More than 3: aggregate self-assessed current price value -
Mortgages, up to 3: amount borrowed and still owed, year and length of the loan, current interest rate, monthly amount of payment (capital + interests) More than 3: aggregate amount still due and monthly amount payment Missing: number of months paying capital + interests in a year - Tax reliefs for mortgage interest repayments
Cars Tax on car property
Number and value of cars and other vehicles -
Self-employment business
Self-assessed value of the business, number of employees, NACE (Nomenclature statistique des Activités économiques dans la Communauté Européenne), legal form of the business -
Financial assets Tax on financial assets
Value of sight accounts, saving accounts, investments in mutual funds, bonds, shares, managed accounts, other financial assets -
Social security and pension assets
Value of social security plans, occupational and voluntary pension schemes - Social security wealth
Contributions to private pension schemes - Refinement of tax reliefs for contributions to private pension schemes
Net wealth Tax on net wealth, Net wealth means-test for eligibility of benefits
All of the above -
Gift and inheritance Tax on inheritance and gift
Gift and inheritance received, number, year, kind of assets, value, from whom received -
Income from real estate property Income from rental of a property or land Tax on rental income
Income from financial assets Refinement of tax on income from financial assets
Income from deposits, mutual funds, bonds, non-self-employment private business, shares, managed accounts, other assets, voluntary pension/whole life insurance Aggregate income from financial assets

  1. Source: HFCN (2013a & b)

Table 3

Descriptive statistics of sample and weights.

Observations Mean weight Median weight Min. weight Max. weight
Belgium 5,488 1,961.1 1,274.8 149.7 12,205.7
Italy 19,736 3,032.6 1,826.8 3.04 22,802.1

  1. Source: Own calculations based on HFCS.

Table 4

Comparison of income inequality indicators between HFCS and EU-SILC.

Belgium (2009) Italy (2010)
EUROMOD based on HFCS EUROMOD based on EU-SILC EUROMOD based on HFCS EUROMOD based on EU-SILC
Original income
Mean 24,936 (654.6) 1,500 (159.8) 15,025 (116.1) 15,937 (88.2)
Median 17,904 19,755 11,820 12,568
Gini coefficient 0.57 (0.01) 0.48 (0.003) 0.52 (0.004) 0.52 (0.002)
Disposable income
Mean 21,636 (311.3) 20,177 (74.7) 15,269 (75.9) 16,906 (57.6)
Median 18,847 19,067 13,235 14,899
Gini coefficient 0.32 (0.01) 0.23(0.002) 0.33 (0.003) 0.33 (0.002)
Net wealth
Mean 336,068 (11,942.17) 272,546 (5,834.23)
Median 205,802 172,519
Gini coefficient 0.61 (0.01) 0.61 (0.01)

  1. Source: Own calculations based on EM-HFCS and EM-SILC.

  2. Notes: Original and disposable income are annual amounts equivalised using the modified OECD equivalence scale, all individuals considered. Wealth amounts are at household level, not equivalised. All figures are derived using sample weights. Standard errors are shown between parentheses.

Table A.1

Comparison between EM-HFCS and EM-SILC of socio-demographic characteristics population, Belgium.

EM-HFCS EM-SILC External Source*
Age
< 16 17.7 18.2 18.1
16–29 17.5 17.5 17.4
30–44 21.3 21.0 20.5
45–64 26.4 27.0 26.9
> 64 17.2 16.2 17.1
Gender
Female 51.0 50.8 50.9
Male 49.0 49.2 49.1
Highest education achieved**
Not completed primary 12.8 18.2 15.9
Primary 11.5 12.8 13.2
Lower secondary 16.0 18.0 19.1
Upper secondary 30.9 25.1 22.0
Post-secondary   1.8 2.4
Tertiary 28.8 24.1 19.5
Labour market status
Pre-school 5.9 7.3 7.0
Employer or self-employed 3.7 4.1 5.8
Employee 36.3 35.7 36.9
Family worker 0.1 0.2 0.7
Pensioner 21.0 18.6 18.3
Unemployed 6.5 5.1 3.6
Student 19.8 18.1 17.6
Inactive 0.0 1.4 1
Sick or disabled 2.4 3.0 10.1
Other 4.2 6.5
Marital status
Single 46.6 44.7 45.6
Married 40.8 40.5 40.2
Separated N.A. 0.3 N.A.
Divorced 6.6 8.8 7.8
Widowed 6.0 5.8 6.4
Tenure status
Owner paying mortgage 37.4 30.2 69.1
Outright owner 36.2 41.6
Tenant at market rate 24.7 19.5 29.9
Tenant at reduced rate 7.3
1.7 1.4 1.0

  1. Source: Own calculations based on EM-HFCS and EM-SILC; External: CENSUS 2011 (Eurostat, 2016).

  2. Notes: Statistically significant differences (at 5% level) are shown in italics;

  3. *

    Education and economic status of individuals aged below 15 imputed based on age;

  4. **

    Highest education achieved in external data unknown for 7.9%. All figures are derived using sample weights.

Table A.2

Comparison between EM-HFCS and EM-SILC of socio-demographic characteristics population, Italy.

EM-HFCS EM-SILC External source*
Age
< 16 15.1 15.0 14.9
16–29 15.2 14.9 14.5
30–44 21.8 23.2 22.1
45–64 27.5 26.7 27.6
> 64 20.4 20.2 20.8
Gender
Female 51.6 51.4 51.6
Male 48.4 48.6 48.4
Highest education achieved
Not completed primary 9.6 13.7 14.2
Primary 21.4 19.3 19.7
Lower secondary 28.6 27.2 25.2
Upper secondary 30.9 30.1 28.0
Post-secondary 2.3
Tertiary 9.5 9.8 10.6
Labour market status
Pre-school 4.3 5.7 5.6
Employer or self-employed 7.5 8.4 8.1
Employee 30.5 29.2 32.8
Family worker 0.0 0.0 0.0
Pensioner 23.3 18.1 21.3
Unemployed 6.1 5.0 5.0
Student 17.7 15.7 14.7
Inactive 0.2 0.0 11.4
Sick or disabled 0.0 0.0
Other 10.4 17.9
Marital status
Single 38.1 40.3 41.2
Married 50.8 47.5 48.7
Separated N.A. N.A. N.A.
Divorced 3.7 3.7 2.3
Widowed 7.5 8.5 7.8
Tenure status
Owner paying mortgage 11.6 15.4 73.0
Outright owner 58.1 56.5
Tenant at market rate 20.5 18.8 17.9
Tenant at reduced rate
Free user 9.8 9.3 9.1

  1. Source: Own calculations based on EM-HFCS and EM-SILC; External: CENSUS 2011 (Eurostat, 2016).

  2. Notes: Statistically significant differences (at 5% level) are shown in italics;

  3. *

    Education and economic status of individuals aged below 15 imputed based on age. All figures are derived using sample weights.

Table A.3

Comparison between EM-HFCS and EM-SILC of means of different components by decile of equivalised disposable income, Belgium, 2009.

Decile Disposable income Original income Benefits Taxes Social insurance contributions
EUROMOD 2009 based on HFCS
1 5,559 1,526 4,217 −19 203
2 10,971 5,009 6,606 127 516
3 13,526 7,982 7,117 657 916
4 15,540 11,741 6,911 1,609 1,503
5 17,693 15,297 7,245 2,894 1,954
6 19,796 19,579 6,870 4,001 2,652
7 22,192 25,034 6,287 5,816 3,312
8 24,850 30,455 6,189 7,678 4,115
9 28,904 38,049 6,984 10,944 5,186
10 57,618 95,212 8,249 36,142 9,732
Total 21,636 24,936 6,665 6,961 3,004
EUROMOD 2009 based on EU-SILC
1 8,317 2,301 6,338 −26 350
2 12,184 5,452 7,845 334 747
3 14,326 7,631 8,783 1,045 1,062
4 16,288 12,069 7,810 1,915 1,691
5 18,197 16,363 6,979 3,001 2,156
6 20,031 21,106 5,993 4,200 2,688
7 22,103 25,567 5,418 5,494 3,342
8 24,578 30,544 5,428 7,290 4,128
9 27,950 37,008 5,938 10,056 4,934
10 37,832 57,036 6,884 19,046 7,051
Total 20,177 21,500 6,741 5,233 2,832

  1. Source: Own calculations based on EM-HFCS and EM-SILC.

  2. Note: Annual income components equivalised using the modified OECD equivalence scale. All figures are derived using sample weights.

Table A.4

Comparison between EM-HFCS and EM-SILC of means of different components by decile of equivalised disposable income, Italy, 2010.

Decile Disposable income Original income Benefits Taxes Social insurance contributions
EUROMOD 2010 based on HFCS
1 3,779 2,904 1,349 132 341
2 7,371 5,629 3,011 687 583
3 8,957 6,498 4,277 1,183 635
4 10,392 7,126 5,600 1,623 711
5 12,217 10,075 5,357 2,208 1,007
6 14,162 13,013 5,182 2,718 1,314
7 16,213 15,305 5,808 3,365 1,535
8 18,836 19,617 5,532 4,378 1,936
9 22,802 24,641 6,444 5,791 2,492
10 38,108 45,609 9,124 11,829 4,795
Total 15,269 15,025 5,164 3,387 1,533
EUROMOD 2010 based on EU-SILC
1 3,296 2,326 1,395 140 285
2 7,702 5,373 3,245 366 551
3 9,813 7,418 3,965 805 764
4 11,804 9,246 4,987 1,495 934
5 13,832 10,906 6,035 2,018 1,091
6 16,089 13,262 6,902 2,757 1,319
7 18,536 17,174 6,676 3,591 1,724
8 21,469 20,837 7,465 4,773 2,059
9 25,759 26,520 8,512 6,617 2,656
10 40,780 46,326 13,144 14,184 4,506
Total 16,906 15,937 6,232 3,674 1,589

  1. Source: Own calculations based on EM-HFCS and EM-SILC.

  2. Note: Annual income components equivalised using the modified OECD equivalence scale. All figures are derived using sample weights.

Table A.5

Comparison between tax statistics, EM-HFCS and EM-SILC of tax units and net taxable income, Belgium, 2009.

Decile/Percentile Tax statistics EM-HFCS EM-SILC
Number of tax units
1 615,957.6 469,729 203,622
2 615,957.6 550,059 523,956
3 615,957.6 400,565 543,328
4 615,957.6 535,845 544,909
5 615,957.6 634,379 594,512
6 615,957.6 460,388 556,651
7 615,957.6 412,273 563,227
8 615,957.6 499,893 624,264
9 615,957.6 647,452 683,741
10 615,957.6 711,359 552,271
91 61,595.76 80,323 65,886
92 61,595.76 81,886 65,088
93 61,595.76 85,370 66,475
94 61,595.76 63,196 52,019
95 61,595.76 59,804 47,393
96 61,595.76 36,264 54,328
97 61,595.76 60,376 64,060
98 61,595.76 45,649 55,509
99 61,595.76 64,820 46,654
100 61,595.76 133,671 34,859
Total 6,159,576 5,078,337 5,286,509
Mean net taxable income
1 1,428 484 929
2 8,632 8,633 8,944
3 12,587 12,653 12,581
4 15,427 15,465 15,466
5 18,845 18,715 18,758
6 22,639 22,740 22,691
7 27,133 27,159 27,223
8 33,982 34,265 33,962
9 45,685 46,101 45,676
10 87,118 111,794 79,162
91 55,864 55,965 55,806
92 58,508 58,459 58,570
93 61,493 61,349 61,358
94 64,904 64,836 64,810
95 68,920 68,704 68,807
96 73,909 73,258 73,970
97 80,480 80,321 80,271
98 90,005 89,502 89,312
99 107,397 107,016 107,013
100 209,700 286,309 183,816
Maximum / 2,348,883 727,625
Total 27,339 35,175 29,412

  1. Source: Directorate-General Statistics, Department Economics of the Belgian Federal Government (2015) and own calculations based on EM-HFCS and EM-SILC.

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