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."

Table 1
Comparison of household disposable income estimates for the System of Macroeconomic Accounts (MEA) and the Social Policy Simulation Database and Model (SPSD/M), 2018
Table summary
Comparison of household disposable income estimates for the System of Macroeconomic Accounts (MEA) and the Social Policy Simulation Database and Model (SPSD/M), 2018
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”  
Table 2
Comparison of household disposable income estimates for the System of Macroeconomic Accounts (MEA) and the Social Policy Simulation Database and Model (SPSD/M), 2018
Table summary
Comparison of household disposable income estimates for the System of Macroeconomic Accounts (MEA) and the Social Policy Simulation Database and Model (SPSD/M), 2018
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

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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