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CYPRUS FINAL QUALITY REPORT STATISTICS ON INCOME AND LIVING CONDITIONS 2010

CONTENTS Page PREFACE... 6 1. COMMON LONGITUDINAL EUROPEAN UNION INDICATORS 1.1. Common longitudinal EU indicators based on the longitudinal component of EU-SILC... 7 2. ACCURACY 2.1. Sample design... 8 2.1.1. Type of sample design... 8 2.1.2. Sampling units... 8 2.1.3. Stratification and sub-stratification criteria... 8 2.1.4. Sample size and allocation criteria... 8 2.1.5. Sample selection schemes... 11 2.1.6. Sample distribution over time... 11 2.1.7. Renewal of sample: rotational groups... 11 2.1.8. Weightings... 12 2.1.8.1. Design factor... 12 2.1.8.2. Non-response adjustments... 12 2.1.8.3. Adjustments to external data... 13 2.1.8.4. Final longitudinal weight... 13 2.1.8.5. Non-response adjustments... 13 2.1.8.6. Adjustments to external data... 13 2.1.8.7. Final longitudinal weight... 14 2.1.8.8. Final household cross-sectional weight... 14 2.1.9. Substitutions... 14 2.1.9.1. Method of selection of substitutes... 14 2.1.9.2. Main characteristics of substituted units compared to original units, by region (NUTS 2) if available... 14 2.1.9.3. Distribution of substituted units by record of contact at address (DB120), household questionnaire result (DB130) and household interview acceptance (DB135) of the original units... 14 2.2. Sampling errors... 15 2.2.1. Standard error and effective sample size... 15 2.3. Non-sampling errors... 29 2.3.1. Sampling frame and coverage errors... 29 2.3.2. Measurement and processing errors... 30 2.3.2.1. Measurement errors... 30 2.3.2.2. Processing errors... 31 2.3.3. Non-response errors... 32 2.3.3.1. Achieved sample size... 32 2.3.3.2. Unit non-response... 32-2 -

2.3.3.3. Distribution of households by household status (DB110), by record of contact at address (DB120), by household questionnaire result (DB130) and by household interview acceptance (DB135)... 42 2.3.3.4. Distribution of persons by membership status... 44 2.3.3.5. Item non-response... 45 2.4. Mode of data collection... 52 2.5. Imputation procedure... 55 2.6. Imputed rent... 55 2.7. Company car... 55 Page 3. COMPARABILITY 4. COHERENCE 3.1. Basic concepts and definitions... 56 3.2. Components of income... 57 3.2.1. Differences between the national definitions and standard EU-SILC definitions... 57 3.2.2. The source or procedure used for the collection of income variables... 58 3.2.3. The form in which income variables at component level have been obtained 58 3.2.4. The method used for obtaining income target variables in the required form 58 3.3. Tracing rules... 58 4.1. Comparison of income target variables and number of persons who receive income from each income component, with external sources... 59-3 -

LIST OF TABLES Page 1.1.1 Persistent-at-risk of poverty rate by age and sex (60% of median), 2007-2010... 7 2.1.4.1 Sample size, addresses and household interviews (R2)... 10 2.1.4.2 Households and persons ( R2)... 11 2.1.7.1 Used addresses and accepted interviews (R2 R3 R4)... 12 2.2.1.1 Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at household and personal level longitudinal component R2 (EU- SILC 2007)... 15 2.2.1.2 Mean (weighted- EURO), the total number of observations (before and after imputation) and Standard errors for the Equivalised disposable income - longitudinal component R2 (EU- SILC 2007)... 17 2.2.1.3 Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at household and personal level longitudinal component R2 (EU-SILC 2008)... 18 2.2.1.4 Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the Equivalised disposable income - longitudinal component R2 (EU-SILC 2008)... 20 2.2.1.5 Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at household and personal level longitudinal component R2 (EU-SILC 2009)... 21 2.2.1.6 Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the Equivalised disposable income - longitudinal component R2 (EU-SILC 2009)... 23 2.2.1.7 Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at household and personal level longitudinal component R2 (EU-SILC 2010)... 24 2.2.1.8 Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the Equivalised disposable income - longitudinal component R2 (EU-SILC 2010)... 26 2.2.1.9 Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at household and personal level cross sectional component 2010... 27 2.2.1.10 Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the Equivalised disposable income cross sectional component 2010... 29 2.3.3.1.1 Sample Size and Accepted Interviews longitudinal component (R2)... 32 2.3.3.3.1 Distribution of households by household status - DB110 ( R2)... 42 2.3.3.3.2 Distribution of households by record of contact at address - DB120 ( R2)... 43 2.3.3.3.3 Distribution of households by household questionnaire result - DB130 ( R2)... 43 2.3.3.3.4 Distribution of households by household interview acceptance - DB135 ( R2)... 43 2.3.3.4.1 Distribution of persons by membership status - RB110 (R2)... 44 2.3.3.4.2 Distribution of persons by moved to - RB120 (R2)... 44 2.3.3.5.1 Information on item non-response, household level income variables (R2), 2007... 45 2.3.3.5.2 Information on item non-response, household level income variables (R2), 2008... 46 2.3.3.5.3 Information on item non-response, household level income variables (R2), 2009... 47-4 -

2.3.3.5.4 Information on item non-response, household level income variables (R2), 2010... 48 2.3.3.5.5 Information on item non-response, personal level income variables (R2), 2007... 49 2.3.3.5.6 Information on item non-response, personal level income variables (R2), 2008... 50 2.3.3.5.7 Information on item non-response, personal level income variables (R2), 2009... 51 2.3.3.5.8 Information on item non-response, personal level income variables (R2), 2010... 52 2.4.1 Distribution of all household members by data status - RB250 (R2)... 53 2.4.2 Distribution of sample persons by data status - RB250 (R2)... 53 2.4.3 Distribution of co-residents by data status - RB250 (R2)... 54 2.4.4 Distribution of all household members by type of interview - RB260 (R2)... 54 2.4.5 Distribution of sample persons by type of interview - RB260 (R2)... 54 2.4.6 Distribution of co-residents by type of interview - RB260 (R2)... 55 4.1.1 Comparison between EU-SILC 2008, 2009 and 2010 for all income target variables at household level... 60 4.1.2 Comparison between EU-SILC 2008, 2009 and 2010 for all income target variables at individual level... 61 4.1.3 Comparison between Household Budget Survey 2009 and EU-SILC 2010 for income variables at household level... 62 4.1.4 Comparison between Household Budget Survey 2009 and EU-SILC 2010 for income variables at individual level... 63 4.1.5 Comparison between Labour Force Survey 2010 and EU-SILC 2010 for the labour force participation rates... 64-5 -

PREFACE The present final quality report complies with the Commission Regulation (EC) No 1177/2003 Article 16. The structure of the report follows Commission Regulation No 28/2004 and presents results on accuracy, comparability and coherence of the EU-SILC longitudinal dataset 2007-2010 and the cross-sectional dataset 2010. - 6 -

1. COMMON LONGITUDINAL EUROPEAN UNION INDICATORS 1.1. Common longitudinal EU indicators based on the longitudinal component of EU-SILC As it is stated in the EUROSTAT revised document 39/09: the persistent-at-risk-of poverty rate by age and gender shows the percentage of the population in each gender and age category living in households where the equivalised disposable income is below the at-risk-of poverty threshold for the current year and at least two out of the three preceding years. According to the EU-SILC longitudinal dataset (2007-2010) 10,3% of the reference population who were in poverty in 2010 were also in poverty at least 2 out of the preceding 3 years (2007-2009). Table 1.1.1 : Persistent-at-risk of poverty rate by age and sex (60% of median), 2007-2010 AGE SEX % Total 10,3 Total Males 8,2 Females 12,1 0 17 Total 4,4 Total 5,0 18 64 Males 4,0 Females 6,0 Total 40,8 65>= Males 35,1 Females 44,9-7 -

2. ACCURACY 2.1. Sample design 2.1.1. Type of sample design (stratified, multi-stage, clustered) The longitudinal component of EU-SILC 2010 as transmitted to EUROSTAT consists of rotational groups R2 for the years 2007-2010, R3 for the years 2008, 2009 and 2010 and of the rotational group R4 for the years 2009 and 2010. The rotational group R2 for the years 2007 2010 was drawn with the sample of 2007, the rotational group R3 with the sample of 2008 and the rotational group R4 with the sample of 2009. The cross-sectional component of EU-SILC 2010 included the rotational groups of R2, R3, R4 and R1. The rotational group R1 was the new sub-sample added in 2010. The sample was drawn from the 2001 Census of Population sampling frame, which was updated by the Electricity Authority of Cyprus (E.A.C.) list of new domestic consumers (built after 2001 up to 2008) (last update April of 2008). The sample design was one-stage stratification. 2.1.2. Sampling units (one stage, two stages) The sampling units are private households, which were selected with simple random sampling within each stratum. 2.1.3. Stratification and sub-stratification criteria Geographical stratification criteria were used for the sample selection. The households were stratified in 9 strata based on District (Urban / Rural), i.e. 1) Lefkosia Urban, 2) Lefkosia Rural, 3) Ammochostos Rural (1), 4) Larnaka Urban, 5) Larnaka Rural, 6) Lemesos Urban, 7) Lemesos Rural, 8) Pafos Urban, 9) Pafos Rural. 2.1.4. Sample size and allocation criteria According to the Regulation (EC) No 1177/2003 Article 9, the minimum effective sample size for Cyprus for the cross-sectional component is 3.250 households and 7.500 persons aged 16 or over and for the longitudinal component is 2.500 households and 5.500 persons aged 16 or over. (1) Ammochostos Urban is an area not under the effective control of the Government of the Republic of Cyprus. - 8 -

The longitudinal component for the years 2007 to 2010, the 4-year trajectory is illustrated in the figure below: YEAR 2007 2008 2009 2010 R3 R4 R1 R2 R3 R4 R1 Longitudinal component The dataset of longitudinal component consists, in total of 3.726 households. These households are broken down to the original households selected in the first wave 2007 (N=1.153), the follow-up households of 2008 (N=891), the split households of 2008 (N=16), the follow-up households of 2009 (N=841), the split households of 2008 (N=19), the follow-up households of 2010 (N=794) and the split households of 2010 (N=12). The sample results for the longitudinal component of 2007-2010, the 4-year trajectory are shown in the table that follows: - 9 -

Table 2.1.4.1 : Sample size, addresses and household interviews (R2) 2007 2008 2009 2010 Follow up Households Split Households Follow up Households Split Households Follow up Households Split Households n % n % n % n % n % n % n % Addresses in initial sample 1.153 100,0 891 100,0 16 100,0 841 100,0 19 100,0 794 100,0 12 100,0 Addresses used for the survey 1.031 89,4 891 100,0 16 100,0 841 100,0 19 100,0 794 100,0 12 100,0 Addresses out of scope 122 10,6 0 0,0 0 0,0 0 0,0 0 0,0 0 0,0 0 0,0 Addresses used 1.031 100,0 891 100,0 16 100,0 841 100,0 19 100,0 794 100,0 12 100,0 Addresses successfully contacted 1.027 99,6 891 100,0 16 100,0 841 100,0 19 100,0 794 100,0 12 100,0 Addresses not successfully contacted 4 0,4 0 0,0 0 0,0 0 0,0 0 0,0 0 0,0 0 0,0 Addresses successfully contacted 1.027 100,0 891 100,0 16 100,0 841 100,0 19 100,0 794 100,0 12 100,0 Household questionnaire completed 912 88,8 830 93,2 15 93,8 776 92,3 17 89,5 750 94,5 8 66,7 Refusal to cooperate 87 8,5 51 5,7 1 6,3 46 5,5 2 10,5 27 3,4 4 33,3 Entire household away for the duration of fieldwork 6 0,6 3 0,3 0 0,0 2 0,2 0 0,0 3 0,4 0 0,0 Household unable to respond 16 1,6 7 0,8 0 0,0 17 2,0 0 0,0 14 1,8 0 0,0 Other reasons for not completing the Household questionnaire 6 0,6 0 0,0 0 0,0 0 0,0 0 0,0 0 0,0 0 0,0 Household questionnaire completed 912 100,0 830 100,0 15 100,0 776 100,0 17 100,0 750 100,0 8 100,0 Interviews accepted for database 912 100,0 830 100,0 15 100,0 776 100,0 17 100,0 750 100,0 8 100,0 Interviews rejected for database 0 0,0 0 0,0 0 0,0 0 0,0 0 0,0 0 0,0 0 0,0-10-

The table below is a breakdown of addresses and persons present in each wave: Table 2.1.4.2 : Households and persons (R2) 2007 2008 2009 2010 Addresses used for the survey 1.031 907 860 806 Addresses successfully contacted 1.027 907 860 806 Accepted household interviews 912 845 793 758 Persons 2.765 2.561 2.369 2.254 Persons 16+ 2.195 2.077 1.934 1.871 Personal interviews 2.195 2.077 1.934 1.871 2.1.5. Sample selection schemes The sample was selected from each stratum with simple random sampling. 2.1.6. Sample distribution over time The survey for the year 2007 was carried out from the 19 th of March to the 3 rd of August 2007. The survey for the year 2008 was carried out from the 17 th of March 2008 to the 31 st of July 2008. The survey for the year 2009 was carried out from the 17 th of March 2009 to the 31 st of July 2009 and the survey for the year 2010 was carried out the 15 th of March 2010 to the 15 th of August 2010. 2.1.7. Renewal of sample: rotational groups The year 2005 was the initial year of the survey. The sample in the first round was divided in 4 sub-samples as it was based on a rotational design of 4 replications with a rotation of one replication per year. Each sub-sample was separately selected so as to represent the whole population. Every year one sub-sample is dropped and substituted by a new one. For 2007 one specific sub-sample, pre-selected from 2005 (R2) was dropped and substituted by a new one (R2). For 2008 the rotational group 3 (R3), was dropped and substituted by a new one (R3). For 2009 the rotational group 4 (R4), was dropped and substituted by a new one (R4). For 2010 the rotational group 1 (R1), was dropped and substituted by a new one (R1). -11-

The size of each Rotational Group for the 2009 survey (longitudinal component) is shown in Table 2.1.7.1: Table 2.1.7.1 : Used addresses and accepted interviews (R2 R3 R4) Used addresses 2007 2008 2009 2010 Accepted interviews Used addresses Accepted interviews Used addresses Accepted interviews Used addresses Accepted interviews R2 1.153 912 928 845 874 793 819 758 R3 na na 1.153 840 852 754 786 714 R4 na na na na 1.153 800 817 750 Total 1.153 912 2.081 1.685 2.879 2.347 2.422 2.222 2.1.8. Weightings 2.1.8.1. Design factor The methodology that was used for the computation of the weights of the survey is the one proposed in Doc. EU-SILC 065. For a household the design weight is calculated as the inverse of its inclusion probability that is the probability belonging to the selected sample of households: DB080 i 1 i 1 n N i i N n i i, i=1,,9 π i = the probability of a household to be selected from stratum i n i = the sample size of stratum i N i = the total number of households in the sampling frame of stratum i The design weights were calculated for all households included in the 2005 sample. For the subsequent years i.e. 2006 onwards, design weights are calculated for each new sub-sample added to the existing sample. 2.1.8.2. Non-response adjustments (first wave) The aim of non-response adjustments is to reduce the bias due to non-response, i.e. household was contacted (DB120=11) but household questionnaire was not completed (DB130 11). The empirical response rate within each stratum provides an estimate of the response probability for all the households of the stratum. The weight of a household after correction for the non-response at the household level is: - 12 -

DB080 * i 1 ^ p i DB080 i = the design weight of a household in stratum i before non-response adjustment ^ p = the estimated response probability of the household in stratum i i 2.1.8.3. Adjustments to external data (level, variables used and sources) (first wave) The next step is to adjust the data to reliable external sources. The aim is to improve the accuracy of the estimated household and personal variables by using external known information. Eurostat recommends the method of integrative calibration. The idea is to use calibration variables defined at both household and individual level. The individual variables are aggregated at the household level by calculating household totals such as the number of male/female in the household, the number of persons aged 16 and over etc. After that, calibration is done at the household level using the household variables and the individual variables in their aggregate form. The calibration variable used at household level was the household type: 1. One adult no dependent children. 2. At least two adults no dependent children. 3. One adult with at least one dependent child. 4. Two adults with one dependent child. 5. Two adults with two dependent children. 6. Two adults with at least three dependent children. 7. At least two adults and at least one dependent child. At personal level the calibration variables used were the distribution of population by age (age 15, 16 age 19, 20 age 24,, 70 age 74, age 75) and gender. Based on this calibration procedure and using the weight after non-response adjustment as the initial weight, the household (DB090) and the personal (RB050) cross-sectional weights were calculated. 2.1.8.4. Final longitudinal weight (first wave) The base weights for the first wave of the longitudinal component (RB060) are identical to the calibrated cross-sectional weights RB050 scaled up by a factor so each rotational group corresponds to the total population. 2.1.8.5. Non-response adjustments (second wave onwards) For the subsequent waves the weights are adjusted for non response due to attrition. Additionally there are persons who enter the panel households for the first time. Newly born to sample mothers take the weight of their mother. Persons entering the panel household from outside the survey population take as their weight the average weight of sample persons in the household. Persons moving into sample households from other non-sample households in the population, the so called co-residents are given zero base weight. 2.1.8.6. Adjustments to external data (level, variables used and sources) Adjustments to external sources on the subsequent waves of the longitudinal data are not applied. - 13 -

2.1.8.7. Final longitudinal weight (second wave onwards) For the second and subsequent waves of the longitudinal component we compute the base weights (RB060) using the cross-sectional base weights (RB050) adjusted for panel attrition. A rescaling of weights is carried out so to reflect the total target population. Additionally the weights for the 2-year, the 3-year and the 4-year longitudinal sets are computed, namely RB062, RB063 and RB064 respectively. The longitudinal weight RB062 is computed by dividing RB060 by 3, the longitudinal weight RB063 is computed by dividing RB060 by 2 and the longitudinal weight RB064 by dividing RB060 by 4. 2.1.8.8. Final household cross-sectional weight The calibration procedures described above were applied on the initial weight that is the weight adjusted for non-response so to compute the cross-sectional weights at the household level (DB090) and at the individual level (RB050). Calibration procedures were further used for the calculation of cross-sectional weights for household members aged 16 and over (PB040) and for the children aged 0 to 12 years (inclusive) (RL070). For both PB040 and RL070 the personal cross-sectional weight RB050 was used as the initial weight. The calibration variables used for the cross-sectional weight of household members aged 16 and over were the distribution of population aged 16 and over by age (five years age groups) and gender. The respective calibration variable for the children cross-sectional weight for childcare (RL070) was the distribution of population aged 0 to 12 by single years of age. The calibration was carried out using the SAS macro CALMAR which was developed by INSEE. 2.1.9. Substitutions No substitution procedures were applied. 2.1.9.1. Method of selection of substitutes Not applicable. 2.1.9.2. Main characteristics of substituted units compared to original units, by region (NUTS 2) if available Not applicable. 2.1.9.3. Distribution of substituted units by record of contact at address (DB120), household questionnaire result (DB130) and household interview acceptance (DB135) of the original units Not applicable. - 14 -

2.2. Sampling errors 2.2.1. Standard error and effective sample size The tables that follow present the weighted means (based on the households/persons having received an amount on the respective income component), the number of observations (before and after imputation unweighted) and the standard errors of each income component for each wave of the longitudinal component and the cross-sectional component of the year 2010. Table 2.2.1.1: Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at household level - longitudinal component R2 Income Components at household level Mean EU-SILC 2007 Number of observations Before imputation After imputation Standard error Total household gross income (HY010) 37.245,2 887 912 1.216,5 Total disposable household income (HY020) Total disposable household income before social transfers other than old-age and survivors benefits (HY022) Total disposable household income before social transfers including old-age and survivors benefits (HY023) Gross income from rental of a property or land (HY040G) Family/children related allowances (HY050G) Social exclusion not elsewhere classified (HY060G) 33.507,1 911 912 1.123,4 31.604,5 904 905 1.083,2 28.675,7 818 819 859,5 8.931,4 86 86 1.367,5 1.306,3 459 459 77,5 3.323,0 8 8 305,4 Housing allowances (HY070G) 5.170,4 16 16 1.707,6 Regular inter-household cash transfer received (HY080G) Interest, dividends, profit from capital investment in unincorporated business (HY090G) Interest repayments on mortgage (HY100G) Income received by people aged under 16 (HY110G) 3.638,4 74 74 399,2 6.166,7 96 96 3.184,3 2.077,6 120 120 167,6 694,7 2 2 0 Regular taxes on wealth (HY120G) 91,2 510 510 14,6 Regular inter household cash transfer paid (HY130G) Tax on income and social insurance contributions (HY140G) 3.914,2 108 108 325,2 3.247,9 887 912 157,6-15 -

Table 2.2.1.1 (ctd.): Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at personal level - longitudinal component R2 Income Components at personal level Employee cash or near cash income (PY010G) Mean EU-SILC 2007 Number of observations Before imputation After imputation Standard error 18.380,9 1060 1.088 476,1 Company car ( PY021G) 2.118,1 38 38 197,1 Employer s social insurance contributions (PY030G) Optional employer s social insurance contributions (PY031G) Contributions to individual private pension plans (PY035G) Cash benefits or losses from selfemployment (PY050G) Pension from individual private plans (PY080G) 2.559,0 983 983 57,5 1.388,8 427 427 53,6 1.583,4 9 9 545,0 16.778,3 254 254 790,9 14.635,8 15 15 6.050,3 Unemployment benefits (PY090G) 8.089,5 76 76 3.820,0 Old-age benefits (PY100G) 12.897,8 436 436 1.792,7 Survivor benefits (PY110G) 7.388,8 18 18 787,9 Sickness benefits (PY120G) 2.296,0 17 17 762,7 Disability benefits (PY130G) 6.069,1 55 55 449,2 Education-related allowances (PY140G) 2.432,7 136 136 113,2-16 -

Table 2.2.1.2 : Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the Equivalised disposable income - longitudinal component R2 Equivalised disposable income Mean EU-SILC 2007 Number of observations Before After imputation imputation Standard error Subclasses by household size 1 household member 13.760,0 138 138 1.359,0 2 household members 16.021,7 544 544 692,6 3 household members 18.403,4 468 468 1.242,5 4 and more 16.546,7 1.611 1.615 256,5 Population by age group < 25 17.257,5 981 981 318,2 25 to 34 18.549,5 325 325 912,1 35 to 44 18.422,0 369 371 605,7 45 to 54 18.995,5 411 411 650,1 55 to 64 22.536,4 285 287 2.102,1 65+ 12.080,2 390 390 486,7 Population by sex Male 18.094,7 1.307 1.309 485,7 Female 17.354,9 1.454 1.456 383,9-17 -

Table 2.2.1.3: Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at household level - longitudinal component R2 Income Components at household level Total household gross income (HY010) Total disposable household income (HY020) Total disposable household income before social transfers other than oldage and survivors benefits (HY022) Total disposable household income before social transfers including oldage and survivors benefits (HY023) Mean EU-SILC 2008 Number of observations Before imputation After imputation Standard error 38.331,9 820 845 1.019,8 34.365,2 841 845 887,6 32.556,2 835 839 878,1 30.108,8 756 760 996,5 Imputed rent (HY030G) 6.821,2 NA NA 91,8 Gross income from rental of a property or land (HY040G) Family/children related allowances (HY050G) Social exclusion not elsewhere classified (HY060G) 8.971,1 79 79 1.292,1 1.424,0 439 439 89,8 3.870,4 4 4 121,6 Housing allowances (HY070G) 5.158,5 14 14 1.292,5 Regular inter-household cash transfer received (HY080G) Interest, dividends, profit from capital investment in unincorporated business (HY090G) Interest repayments on mortgage (HY100G) Income received by people aged under 16 (HY110G) 4.518,6 73 73 533,0 8.945,6 73 73 4.756,5 2.041,3 106 106 161,9 0 0 0 0,0 Regular taxes on wealth (HY120G) 106,8 502 502 14,7 Regular inter household cash transfer paid (HY130G) Tax on income and social insurance contributions (HY140G) 4.191,3 97 97 401,2 3.453,0 820 845 172,1-18 -

Table 2.2.1.3 (ctd.): Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at personal level - longitudinal component R2 Income Components at personal level Employee cash or near cash income (PY010G) Mean EU-SILC 2008 Number of observations Before imputation After imputati on Standard error 19.130,4 987 1.004 544,3 Non-cash employee income (PY020G) 1.247,0 138 138 140,1 Company car ( PY021G) 2.296,5 31 31 237,7 Employer s social insurance contributions (PY030G) Optional employer s social insurance contributions (PY031G) Contributions to individual private pension plans (PY035G) Cash benefits or losses from selfemployment (PY050G) Pension from individual private plans (PY080G) 2.635,8 926 926 62,5 1.394,1 409 409 56,9 900,4 9 9 189,6 16.624,6 254 254 842,9 12.848,7 16 16 6.085,1 Unemployment benefits (PY090G) 3.545,9 69 69 1.089,5 Old-age benefits (PY100G) 11.326,0 428 430 547,9 Survivor benefits (PY110G) 6.655,4 16 16 984,6 Sickness benefits (PY120G) 2.748,6 15 15 307,1 Disability benefits (PY130G) 6.866,6 55 55 457,7 Education-related allowances (PY140G) 2.554,7 135 135 129,3-19 -

Table 2.2.1.4 : Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the Equivalised disposable income - longitudinal component R2 Equivalised disposable income Mean EU-SILC 2008 Number of observations Before After imputation imputation Standard error Subclasses by household size 1 household member 15.608,0 138 138 1.678,1 2 household members 16.701,9 492 492 522,3 3 household members 19.198,5 444 444 457,2 4 and more 19.289,1 1.437 1.457 285,1 Population by age group < 25 18.488,0 887 893 346,7 25 to 34 19.342,2 268 272 511,5 35 to 44 19.962,2 324 327 676,5 45 to 54 19.481,5 374 379 517,7 55 to 64 21.291,1 279 290 1.076,0 65+ 13.436,0 370 370 515,5 Population by sex Male 18.853,7 1.169 1.178 350,1 Female 18.327,5 1.342 1.353 302,2-20 -

Table 2.2.1.5: Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at household level - longitudinal component R2 Income Components at household level Total household gross income (HY010) Total disposable household income (HY020) Total disposable household income before social transfers other than oldage and survivors benefits (HY022) Total disposable household income before social transfers including oldage and survivors benefits (HY023) Mean EU-SILC 2009 Number of observations Before imputation After imputation Standard error 39.282,7 768 793 1.049,2 35.169,8 792 793 895,5 33.024,2 789 790 889,3 30.087,7 718 719 981,0 Imputed rent (HY030G) 7.837,1 NA NA 166,6 Gross income from rental of a property or land (HY040G) Family/children related allowances (HY050G) Social exclusion not elsewhere classified (HY060G) 9.130,2 72 72 1.357,1 1.619,1 424 424 114,5 5.020,5 4 4 83,1 Housing allowances (HY070G) 5.462,4 14 14 1.681,4 Regular inter-household cash transfer received (HY080G) Interest, dividends, profit from capital investment in unincorporated business (HY090G) Interest repayments on mortgage (HY100G) Income received by people aged under 16 (HY110G) 4.366,6 67 67 483,8 3.510,3 65 65 509,5 4.164,2 100 100 378,2 0 0 0 0,0 Regular taxes on wealth (HY120G) 90,5 485 485 4,5 Regular inter household cash transfer paid (HY130G) Tax on income and social insurance contributions (HY140G) 3.840,4 98 98 371,5 3.609,9 768 793 188,1-21 -

Table 2.2.1.5 (ctd.): Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at personal level - longitudinal component R2 Income Components at personal level Employee cash or near cash income (PY010G) Mean EU-SILC 2009 Number of observations Before imputation After imputation Standard error 20.605,8 896 916 605,2 Non-cash employee income (PY020G) 1.324,4 113 113 158,2 Company car ( PY021G) 2.221,2 24 24 279,0 Employer s social insurance contributions (PY030G) Optional employer s social insurance contributions (PY031G) Contributions to individual private pension plans (PY035G) Cash benefits or losses from selfemployment (PY050G) Pension from individual private plans (PY080G) 2.761,3 845 845 65,2 1.379,1 375 375 57,0 1.010,1 8 8 185,9 16.594,8 227 231 918,5 6.106,6 13 13 1.862,7 Unemployment benefits (PY090G) 3.539,7 54 54 791,0 Old-age benefits (PY100G) 12.055,8 401 402 604,1 Survivor benefits (PY110G) 8.453,8 12 12 764,1 Sickness benefits (PY120G) 2.289,0 20 20 342,7 Disability benefits (PY130G) 7.768,2 54 54 471,3 Education-related allowances (PY140G) 2.719,5 137 137 116,8-22 -

Table 2.2.1.6 : Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the Equivalised disposable income - longitudinal component R2 Equivalised disposable income Mean EU-SILC 2009 Number of observations Before After imputation imputation Standard error Subclasses by household size 1 household member 16.815,7 147 147 1.661,1 2 household members 17.070,9 462 462 546,6 3 household members 20.494,2 381 381 664,1 4 and more 19.246,9 1.335 1.339 247,9 Population by age group < 25 18.658,1 810 810 331,0 25 to 34 20.429,1 246 246 641,0 35 to 44 19.717,3 290 292 612,5 45 to 54 20.188,3 367 367 569,5 55 to 64 21.474,2 264 265 1.149,7 65+ 13.515,7 348 349 508,3 Population by sex Male 19.274,4 1.084 1.086 367,1 Female 18.524,9 1.241 1.243 309,8-23 -

Table 2.2.1.7: Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at household level - longitudinal component R2 Income Components at household level Total household gross income (HY010) Total disposable household income (HY020) Total disposable household income before social transfers other than oldage and survivors benefits (HY022) Total disposable household income before social transfers including oldage and survivors benefits (HY023) Mean EU-SILC 2010 Number of observations Before imputation After imputation Standard error 41.073,2 730 758 1.148,4 36.628,0 756 758 976,9 34.280,3 752 754 967,9 30.029,5 703 705 1.025,0 Imputed rent (HY030G) 7.773,3 NA NA 174,5 Gross income from rental of a property or land (HY040G) Family/children related allowances (HY050G) Social exclusion not elsewhere classified (HY060G) 9.969,1 63 63 1.652,7 1.819,7 400 400 134,6 4.787,6 4 4 297,3 Housing allowances (HY070G) 10.695,2 21 21 3.612,2 Regular inter-household cash transfer received (HY080G) Interest, dividends, profit from capital investment in unincorporated business (HY090G) Interest repayments on mortgage (HY100G) Income received by people aged under 16 (HY110G) 4.770,3 62 62 525,9 2.743,8 80 81 388,9 4.175,2 74 74 414,1 750,0 1 1 0,0 Regular taxes on wealth (HY120G) 88,0 466 466 4,4 Regular inter household cash transfer paid (HY130G) Tax on income and social insurance contributions (HY140G) 3.703,1 100 100 372,4 3.983,7 739 758 204,5-24 -

Table 2.2.1.7 (ctd.): Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at personal level - longitudinal component R2 Income Components at personal level Employee cash or near cash income (PY010G) Mean 20.976,1 EU-SILC 2010 Number of observations Before imputation 850 After imputation Standard error 876 565,7 Non-cash employee income (PY020G) 1.213,2 109 109 172,8 Company car ( PY021G) 2.333,9 19 19 321,2 Employer s social insurance contributions (PY030G) Optional employer s social insurance contributions (PY031G) Contributions to individual private pension plans (PY035G) Cash benefits or losses from selfemployment (PY050G) Pension from individual private plans (PY080G) 2.974,3 801 801 70,7 1.441,0 360 360 57,5 1.523,9 10 10 197,0 15.268,8 236 237 892,2 4.483,7 14 14 1.238,0 Unemployment benefits (PY090G) 2.964,6 69 69 425,0 Old-age benefits (PY100G) 13.143,6 397 399 870,4 Survivor benefits (PY110G) 8.781,9 11 11 904,4 Sickness benefits (PY120G) 2.279,0 23 23 377,3 Disability benefits (PY130G) 8.818,3 49 49 530,3 Education-related allowances (PY140G) 2.818,3 126 126 115.6-25 -

Table 2.2.1.8 : Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the Equivalised disposable income - longitudinal component R2 Equivalised disposable income Mean EU-SILC 2010 Number of observations Before After imputation imputation Standard error Subclasses by household size 1 household member 15.969,6 148 148 998,2 2 household members 18.888,1 440 440 901,6 3 household members 21.265,1 336 339 698,8 4 and more 19.859,5 1.281 1.286 241,9 Population by age group < 25 19.010,4 752 754 315,5 25 to 34 21.148,9 235 235 683,9 35 to 44 20.867,6 268 271 680,1 45 to 54 20.481,8 336 337 537,8 55 to 64 23.982,3 262 262 1.399,4 65+ 14.261,5 352 354 556,0 Population by sex Male 19.823,0 1.033 1.036 375,3 Female 19.457,7 1.172 1.177 365,2-26 -

Table 2.2.1.9: Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at household level cross sectional component 2010 Income Components at household level Mean EU-SILC 2010 Number of observations Before imputation After imputation Standard error Total household gross income (HY010) 40.308,0 3.685 3.780 597,4 Total disposable household income (HY020) Total disposable household income before social transfers other than old-age and survivors benefits (HY022) Total disposable household income before social transfers including old-age and survivors benefits (HY023) 35.682,1 3.778 3.780 521,0 33.453,9 3.778 3.760 509,8 29.840,0 3.420 3.422 535,1 Imputed rent (HY030G) 7.844,7 NA NA 94,6 Gross income from rental of a property or land (HY040G) Family/children related allowances (HY050G) Social exclusion not elsewhere classified (HY060G) 9.457,7 310 310 795,4 2.006,3 1.962 1.962 85,6 6.051,7 21 21 696,7 Housing allowances (HY070G) 7.030,4 93 93 1.513,9 Regular inter-household cash transfer received (HY080G) Interest, dividends, profit from capital investment in unincorporated business (HY090G) Interest repayments on mortgage (HY100G) Income received by people aged under 16 (HY110G) 4.854,1 316 316 314,4 4.420,7 472 472 480,8 4.369,0 389 389 220,5 9.258,0 1 1 0,0 Regular taxes on wealth (HY120G) 86,8 2.219 2.219 3,0 Regular inter household cash transfer paid (HY130G) Tax on income and social insurance contributions (HY140G) 4.091,6 563 563 203,7 3.996,9 3.706 3.780 95,0-27 -

Table 2.2.1.9 (ctd.): Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the income components at personal level cross sectional component 2010 Income Components at personal level Employee cash or near cash income (PY010G) Mean EU-SILC 2010 Number of observations Before imputation After imputation Standard error 20.563,0 4.387 4.481 265,4 Non-cash employee income (PY020G) 1.149,5 550 550 84,3 Company car (PY021G) 2.736,8 81 81 235,9 Employer s social insurance contribution (PY030G) Optional employer s social insurance contributions (PY031G) Contributions to individual private pension plans (PY035G) Cash benefits or losses from selfemployment (PY050G) Pension from individual private plans (PY080G) 2.893,9 4.098 4.098 34,0 1.410,0 1.832 1.832 27,3 1.408,0 37 37 196,7 15.376,6 1.059 1.061 943,0 9.891,0 66 66 2.926,8 Unemployment benefits (PY090G) 3.992,8 323 323 597,8 Old-age benefits (PY100G) 13.143,1 1.994 2.000 398,6 Survivor benefits (PY110G) 8.519,0 65 65 743,0 Sickness benefits (PY120G) 2.355,6 101 101 219,9 Disability benefits (PY130G) 7.928,6 235 235 279,4 Education-related allowances (PY140G) 2.971,3 532 532 75,2-28 -

Table 2.2.1.10 : Mean (weighted - EURO), the total number of observations (before and after imputation) and Standard errors for the Equivalised disposable income cross sectional component 2010 Equivalised disposable income Mean EU-SILC 2010 Number of observations Before After imputation imputation Standard error Subclasses by household size 1 household member 16.839,0 649 649 537,6 2 household members 19.559,6 2.322 2.322 517,0 3 household members 21.482,9 1.953 1.956 315,6 4 and more 19.179,7 6.156 6.161 137,1 Population by age group < 25 18.436,4 3.646 3.648 179,2 25 to 34 20.834,8 1.251 1.251 331,3 35 to 44 19.960,9 1.481 1.484 344,2 45 to 54 20.965,7 1.617 1.618 335,3 55 to 64 23.513,8 1.350 1.350 835,9 65+ 15.160,9 1.735 1.737 310,6 Population by sex Male 19.879,6 5.315 5.318 211,9 Female 19.223,9 5.765 5.770 202,9 2.3. Non-sampling errors 2.3.1. Sampling frame and coverage errors The list of households from the 2001 Census of Population was used as sampling frame with a supplementary list of newly constructed houses (built after 2001 up to 2008). The Statistical Service of Cyprus was provided by the Electricity Authority of Cyprus (E.A.C.) with a list of domestic electricity consumers, which contained all the new connections of electricity between 2002 and 2008 (last update April of 2008). The E.A.C. distinguishes domestic consumers from other consumers (e.g. industrial etc). It has been established that each domestic electricity consumer registered by the E.A.C. corresponds to the statistical definition of a housing unit. Each of these new electricity meter connections represented one new household. Coverage problems encountered were: 1. The frame of the 2001 Census of Population was somehow outdated and as a result some housing units were found to be empty or to be used for other purposes other than housing. 2. Some houses included in the E.A.C. list were used as secondary residence, so they were out of scope of the survey. - 29 -

3. Some houses listed by the E.A.C. were impossible to be located due to incomplete information regarding their addresses. 4. Housing units built after April 2008, were not included in our sampling frame. 2.3.2. Measurement and processing errors 2.3.2.1. Measurement errors Possible sources of measurement errors are the questionnaire (design, content and wording), the method of data collection, the interviewers and the respondents. As the 2010 EU-SILC round was the 6 th in the series, quality has considerably improved due to interviewers feedback, continuous data analysis and research. The questionnaire for EU-SILC was developed on the basis of the EU-SILC Doc. 065 and Doc. 055. Even though, the questionnaire was well tested and despite the fact that this was the 5 th wave of the survey, some questions were still difficult to be answered with precision. Difficulties due to memory lapses were encountered in questions regarding income, housing cost, main activity each month as well as for the age at first job especially with older persons. In an effort to minimise these problems respondents were requested to prepare pay slips and utility bills when the interviewer was making an appointment. In the case that the respondents could have the pay slips at a later date then they could send them by fax at the central offices. Difficulties were also encountered in distinguishing the various benefits and pensions. In order to overcome these difficulties a part of the training of the interviewers was focused specifically on social benefits and pensions. As the method of data collection was Computer Assisted Personal Interviewing (CAPI) many validation and consistency checks were implemented during the interview. This had a positive impact on the quality of the data collected. Additionally, problems usually accounted to the routing of the questionnaire were fully avoided because of CAPI. In order to reduce interviewer effects a two week training session for all the interviewers and an extra week training for newly recruited interviewers (i.e. those working for the first time in EU- SILC), was organised at the head offices of the Statistical Service. The training was conducted by permanent staff, Statistics Officers responsible for the EU-SILC survey. The aim of the training was to ensure that all interviewers were uniformly trained both in regard to the content of the questionnaire, as well as their behaviour during the interview. The extra week training for the - 30 -

newcomers focused mainly on the terminology of the survey giving also general information on the previous rounds of the survey. In this way the newcomers were able to follow the other interviewers who worked the year before in the survey. In the second week where all interviewers were together, the training mainly focused on refreshing the terminology used in the questionnaire and on the understanding of new terminology used for the first time in the questionnaire (e.g. Intra household sharing of resources module). Main emphasis was given on difficult definitions and on explaining the various public benefits as well as the importance of the accuracy of the information collected. On the third week the interviewers had intensive sessions on working with their laptops and the electronic questionnaires in the environment of BLAISE. An interviewer manual was prepared explaining each and every single question of the questionnaire as well as their respective possible answers. Apart from the 23 interviewers the training sessions were also attended by 6 supervisors. Each one of them was responsible for a group of 3 or 4 interviewers. During the fieldwork period the supervisor had meetings with each one of the interviewers in his/her group at least once a week. During these meetings, apart from discussing problems or questions raised during the week, the supervisors also collected (from the interviewers laptops) all completed questionnaires. Their main duty during the data collection period was to examine the interviewers work and refer back to them for inconsistencies or for problems identified in connection with terminology. Furthermore the supervisors had to double check some of the answers with respondents either by telephone or by personally visiting the household in question, especially in the case of unusual answers or missing data. Additionally from 2 nd wave onwards, data for households in the survey for 2 years or more were further checked based on the data from previous years. 2.3.2.2. Processing errors Processing errors were reduced because of CAPI and the implementation of validation and consistency checks during the data collection phase (BLAISE software). The processing errors were further reduced as the questionnaires were edited and coded by the supervisors prior to finalising the data files for processing. For the households which were in the survey for at least 2 years an additional tool during editing was the preloading of certain variables from the previous survey. Inconsistencies were further examined with interviewers and in many cases with the households directly. The coding requested was minimal, i.e. occupation (2 digits ISCO), economic activity (2 digits NACE rev. 2) and country of birth; and was carried out using drop down lists. - 31 -

The finalised data files prepared by supervisors were then processed using SAS programs with various other logical and consistency checks. The main errors found were connected to selfemployment income and the recording of the various benefits and pensions under the correct income variable according to EU-SILC Doc. 065. Before sending the final D-, R-, H- and P- files, data files were further checked using EUROSTAT s SAS programs. 2.3.3. Non-response errors 2.3.3.1. Achieved sample size The table below presents analytically the accepted personal interviews, as well as the accepted household interviews, within each rotational group. Table 2.3.3.1.1 : Sample Size and Accepted Interviews longitudinal component (R2) 2007 2008 2009 2010 Persons 16 years and over 2.195 2.077 1.934 1.871 Sample persons 2.195 2.023 1.867 1.753 Co-residents 0 54 67 118 Number of accepted personal questionnaires 2.195 2.077 1.934 1.871 Accepted household interviews 912 845 793 758 R2 2.3.3.2. Unit non-response The following non-response rate calculations, refer to the 2007 wave of the EU-SILC longitudinal component. - Household non-response rates (NRh) DB120 is the record of contact at the address DB130 is the household questionnaire result DB135 is the household interview acceptance result - 32 -

Address contact rate: [ DB120 11] Ra= [ DB120 all] [ DB120 23] Proportion of complete household interviews accepted for the database: Rh= [ DB135 1] [ DB130 all] Household non-response rate: NRh=(1-(Ra*Rh))*100 - Individual non-response rates (NRp) RB245 is the respondent status RB250 is the data status Proportion of complete personal interviews within the households accepted for the database: Rp= [ RB250 11 12 13 14 [ RB245 1 2 3] Individual non-response rate: NRp=(1-Rp)*100 (1) ] - Overall individual non-response rates (* NRp) * NRp=(1-(Ra*Rh*Rp))*100 First wave of longitudinal component (Year 2007) R2 Ra 0,9961 Rh 0,8880 NRh (%) 11,5422 Rp 1,0000 NRp (%) 0,0000 * NRp (%) 11,5422 The tables that follow present the household and person response rates for the longitudinal components of wave 3 (2007 2008), wave 4 (2008 2009) and wave 5 (2009-2010). (1) These are individuals for whom the information was completed from full record imputation. - 33 -

Household response rate: Comparison of result codes between EU-SILC 2007 and EU-SILC 2008 ( R2) Sample outcome in EU-SILC 2008 DB130 = 11 DB110 = 3, 4, Total DB110 = 10 DB120 = 21 DB120 = 22 DB120 = 23 DB130 = 21 DB130 = 22 DB130 = 23 DB130 = 24 Sample outcome in EU-SILC 2007 DB135 = 1 DB135 = 2 5, 6, 7 DB130 = 11 DB135 = 1 830 0 21 0 0 0 0 51 3 7 0 912 DB135 = 2 0 DB120 = 21 0 2007 DB120 = 22 0 DB120 = 23 0 DB120 = 24 0 Total 830 0 21 0 0 0 0 51 3 7 0 912 New Households in EU-SILC 2008 2008 DB110 = 8 15 0 0 0 0 0 0 1 0 0 0 16 DB110 = 9 0 0 0 0 0 0 0 0 0 0 0 0 Total 845 0 21 0 0 0 0 52 3 7 0 928 Response rate for households Wave response rate = 0,91056 Longitudinal follow-up rate = 0,92105 Follow-up ratio = 0,93750 Achieved sample size ratio = 0,92654-34-

Household response rate: Comparison of result codes between EU-SILC 2008 and EU-SILC 2009 ( R2) Sample outcome in EU-SILC 2009 DB130 = 11 DB110 = 3, Total DB110 = 10 DB120 = 21 DB120 = 22 DB120 = 23 DB130 = 21 DB130 = 22 DB130 = 23 DB130 = 24 Sample outcome in EU-SILC 2008 DB135 = 1 DB135 = 2 4, 5, 6, 7 DB130 = 11 DB135 = 1 776 0 12 1 0 0 0 42 2 12 0 845 DB135 = 2 0 0 0 0 0 0 0 0 0 0 0 0 DB120 = 22 0 0 0 0 0 0 0 0 0 0 0 0 2008 DB130 = 22 0 0 1 0 0 0 0 2 0 0 0 3 DB130 = 23 0 0 0 0 0 0 0 2 0 5 0 7 DB130 = 24 0 0 0 0 0 0 0 0 0 0 0 0 Total 776 0 13 1 0 0 0 46 2 17 0 855 New Households in EU-SILC 2009 2009 DB110 = 8 17 0 0 0 0 0 0 0 0 0 0 19 DB110 = 9 0 0 0 0 0 0 0 0 0 0 0 0 Total 793 0 13 1 0 0 0 48 2 17 0 874 Response rate for households Wave response rate = 0,90732 Longitudinal follow-up rate = 0,92982 Follow-up ratio = 0,94971 Achieved sample size ratio = 0,93846-35 -

Household response rate: Comparison of result codes between EU-SILC 2009 and EU-SILC 2010 ( R2) Sample outcome in EU-SILC 2010 DB130 = 11 DB110 = 3, Total DB110 = 10 DB120 = 21 DB120 = 22 DB120 = 23 DB130 = 21 DB130 = 22 DB130 = 23 DB130 = 24 Sample outcome in EU-SILC 2009 DB135 = 1 DB135 = 2 4, 5, 6, 7 DB130 = 11 DB135 = 1 750 0 9 1 0 0 0 23 1 9 0 793 DB135 = 2 0 0 0 0 0 0 0 0 0 0 0 0 DB120 = 22 0 0 0 0 0 0 0 0 0 0 0 0 2009 DB130 = 22 0 0 1 0 0 0 0 0 1 0 0 2 DB130 = 23 0 0 2 0 0 0 0 4 1 5 0 12 DB130 = 24 0 0 0 0 0 0 0 0 0 0 0 0 Total 750 0 12 1 0 0 0 27 3 14 0 807 New Households in EU-SILC 2010 2010 DB110 = 8 8 0 0 0 0 0 0 4 0 0 0 12 DB110 = 9 0 0 0 0 0 0 0 0 0 0 0 0 Total 758 0 12 1 0 0 0 31 3 14 0 819 Response rate for households Wave response rate = 0,92552 Longitudinal follow-up rate = 0,95043 Follow-up ratio = 0,96035 Achieved sample size ratio = 0,95586-36 -