Household Income and Expenditure Survey Analysis Report

2005 Household Income and Expenditure Survey Report1. Introduction1.1. PurposeThis report presents the results of the 2005 HIES. The analysis presented is mainly on the householdincome and expenditure pattern of households. This report presents the consolidated HIES results in thefour states.1.2. ObjectivesThe 2005 FSM HIES has the following objectives:a) To provide data to rebase the FSM CPI;b) To provide data on the distribution of income and expenditures throughout the FSM;c) To provide data for national accounts, particularly regarding income from home productionactivities and the consumption of goods and services derived from home production activities;d) To provide nutritional information and food consumption patterns for the FSM families; ande) To provide data for hardship study.1.3. Authority of Survey and Confidentiality of DataThe HIES is authorized under Section 4 of Public Law 5-77 which states that the DoS shall have as one ofits functions and responsibilities “(4) to collect statistics and related information concerning economic,social and demographic matters; (6) to collect and compile statistical data needed for the formulation ofdevelopment plans and plan implementation including but not limited to the following: (a) data required forthe compilation of national accounts; (d) data on government and household expenditures.Section 11 of this same law protects all information furnished by respondents and guarantees it shall bekept in confidence. This means that:• the information will not be used for any other purpose other than the purpose of conducting acensus, survey, statistical gathering/compilation/tabulations, or other statistical materials;• Information will not be compiled in a manner that would enable individual identification; and• No one other than sworn employees of the DoS will examine information furnished byrespondents.2. Methodology2.1. Scope and CoverageThe survey gathered data from the household unit. Data gathered were especially relating to income andexpenditure. Related information such as demographic and economic characteristics of the population andhousing characteristics were also included. The survey involved the interview of a national sample of 1,380households spread across the four states of the FSM.The survey covered only regular household. Group quarters such as dormitories, hospitals, jailhouses, andsuch are excluded. A household is defined as a group of related or unrelated people living together in ahousing unit and sharing meals.Division of Statistics,Office of Statistics, Budget & Economic Management, Overseas Development Assistance and Compact Management 1