Sampling and non-sampling errors
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The underlying spsd/m data can be affected by both sampling and non-sampling errors derived from SLID and CIS as inferences about the entire population are based on information obtained from a sample. For the 2022 reference year, for example, the final CIS response rate was 70.1%. Sampling errors associated with survey estimates are measured using coefficient of variation for CIS estimates. Additionally, imputation is carried out for income variables as well as variables related to labour, school attendance, food security, housing, and utility costs. Non-sampling errors, on the other hand, are those related to coverage errors, non-response errors, response errors, interviewer errors and other types of processing errors Surveys and statistical programs - Canadian Income Survey (CIS) (statcan.gc.ca).
The table below provides a comparison of income estimates for 2009 from the SPSD/M and the MEA concept by aggregated income category. While the SPSD/M provides estimates on a cash basis of accounting to derive household after-tax income, the MEA applies accrual adjustments to a number of income items to derive the MEA concept of household disposable income. As described in the SNA 2008:
"Accrual accounting records flows at the time economic value is created, transformed, exchanged, transferred or extinguished. This means that flows that imply a change of ownership are entered when the change occurs, services are recorded when provided, output at the time products are created and intermediate consumption when materials and supplies are being used."
| MEA Income concept | |
|---|---|
| Compensation of employees | 1122304 |
| Wages and salaries (excluding royalties) | 971922 |
| Employers’ social contributions (including employment benefits, retirement benefits and allowances) | 155026 |
| Plus: compensation of employees paid to residents by non-residents | 1679 |
| Less: compensation of employees paid by residents to non-residents | 6323 |
| Plus: Mixed income | 195617 |
| Non-farm self-employment | 77124 |
| Farm self-employment | 7046 |
| Rental income, actual and imputed | 111447 |
| Plus: Property income received | 202278 |
| Dividends | 73329 |
| Interest, excluding capital gains (including royalties) |
50512 |
| Investment Income disbursements | 57914 |
| Unfunded pension liability | 3320 |
| Implicit income – deposits and insurance | 17203 |
| Less: Property income paid | 70213 |
| Interest | 70213 |
| Equals: Balance of primary income | 1449986 |
| Plus: Current transfers received from | 334066 |
| Non-profit institutions serving households | 5286 |
| Corporations (including employer pension plan benefits) |
104468 |
| Governments (incl. scholar., burs., research grants) | 221622 |
| of which, Employment Insurance | 16958 |
| Non-residents | 2690 |
| Less: Current transfers paid to | 559134 |
| Non-profit institutions serving households | 18915 |
| Corporations | 147727 |
| Governments | 385387 |
| of which, Personal income tax | 269486 |
| Non-residents | 7105 |
| Equals: Disposable income | 1224918 |
| Plus: SPSD/M items excluded from macroeconomic income concept | |
| Capital gains | |
| Support payments from other resident households | |
| Equals: SPSD/M “disposable income” | |
|
Notes: In the macroeconomic concept, income is recorded on an accrual basis of accounting, except for items such as income taxes. System of Macroeconomic Accounts (MEA) disposable income includes the territories while that population is excluded from the Social Policy Simulation Database and Model (SPSD/M) income concept. … : not applicable Source: Statistics Canada, tables 36-10-0107-01, 36-10-0112-01, 36-10-0477-01, 36-10-0126-01 and 36-10-0205-01. |
|
| SPSD/M income concept | $ millions |
|---|---|
| Compensation of employees | 980,047 |
| Wages and salaries (including royalties) | 952,570 |
| Other income (retirement allowances, scholarships, bursaries and research grants) | 27,477 |
| Plus: compensation of employees paid to residents by non-residents | … |
| Less: compensation of employees paid by residents to non-residents n.a. | … |
| Plus: Self-employment | 57,975 |
| Non-farm | … |
| Farm | … |
| Rental income, actual and imputed | … |
| Plus: Investment income | 97,084 |
| Dividends | 70,610 |
| Interest, excluding capital gains (including actual rental income) | 26,474 |
| Investment Income disbursements | … |
| Unfunded pension liability | … |
| Implicit income – deposits and insurance | … |
| Less: Property income paid | … |
| Interest | … |
| Equals: Market income | 1,135,106 |
| Plus: Current transfers received from | 333,460 |
| Non-profit institutions serving households | … |
| Corporations (employer pension plan benefits and registered retirement savings plan withdrawals) | 118,358 |
| Governments | 215,102 |
| of which, Employment Insurance | 17,069 |
| Non-residents | … |
| Less: Current transfers paid to | 300,106 |
| Non-residents | … |
| Corporations | … |
| Governments | 300,106 |
| of which, Personal income tax | 254,149 |
| Non-residents | … |
| Equals: After-tax income | 1,168,460 |
| Plus: SPSD/M items excluded from macroeconomic income concept | 68,580 |
| Capital gains | 64,943 |
| Support payments from other resident households | 3,637 |
| Equals: SPSD/M “disposable income” | 1,237,040 |
|
Notes: In the macroeconomic concept, income is recorded on an accrual basis of accounting, except for items such as income taxes. System of Macroeconomic Accounts (MEA) disposable income includes the territories while that population is excluded from the Social Policy Simulation Database and Model (SPSD/M) income concept. … : not applicable Source: Statistics Canada, tables 36-10-0107-01, 36-10-0112-01, 36-10-0477-01, 36-10-0126-01 and 36-10-0205-01. |
|
As shown in the table, SPSD/M income items are generally lower than the MEA, due mainly to differences in income concepts between the two sources. For example, SPSD/M market income is lower than the MEA concept of primary income, due mainly to the inclusion of employers’ social contributions. As well, transfers to corporations are lower in the SPSD/M as the MEA concept includes transfers from households to corporations for pension plan entitlements.
As mentioned above, there are a number of other reasons why income estimates in the SPSD/M do not match the MEA income concept. In each case, as the table suggests, elements are included in the MEA macroeconomic estimates of household disposable income that are not included in the SPSD/M microeconomic estimates. Macroeconomic statistics are compiled within an integrated system which considers income to accrue from productive activity and tracks income flows consistently among all institutional sectors. So it follows that logical proxies need to be identified to distribute directly observable and missing elements.
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