Issues

Spending by Asian families

U.S. Department of Labor

U.S. Bureau of Labor Statistics

Summary 05-03 September 2005

in Labor Statistics

Tables regularly published as part of the Consumer Expenditure Survey program were expanded with the release of the 2003 data.1

 A

new column, “Asian,” was added to the table

that shows expenditures by the race of the reference person.2

 Member relationships within

consumer units (CUs) with an Asian reference

person consisted of 32.2 percent husband and

wife with children, 30.0 percent single, 16.4

percent husband and wife only, 2.0 percent

single parent with children, and 19.4 percent

other.3 Among CUs consisting of husband and

wife with children and who reported an Asian

reference person, 87.7 percent comprised all

Asian members. This summary highlights

spending by Asian families in 2003 from the

Consumer Expenditure Interview Survey,

wherein a family is defined as a CU comprising

husband and wife with children, an Asian family is one in which all family members are

Asians, and other family is one in which not all

family members are reported as Asians.4

Characteristics

Asian families comprise 3.7 percent of all families. They have several characteristics similar

to those of other families—both groups of families average 4.0 members, with 1.5 members

under age 18, and the average age of family

members is between 27 and 28 years. (See the

table on the reverse side.) However, Asian

families have significantly fewer earners (1.8

members versus 2.0 members for other families), a correspondingly smaller proportion of

CUs in which both husband and wife working

(41.5 percent versus 50.8 percent of other families), and a smaller incidence of homeownership

(70.8 percent versus 82.4 percent of other families). Almost all Asian families live in a Metropolitan Statistical Area5

 (99.3 percent versus

81.6 percent of other families), and more than

40 percent live in the West (compared with

22.7 percent of other families). Asian families

have higher proportions of male reference persons (74.1 percent versus 56.6 percent for other

families), and reference persons who are college graduates (63.5 percent versus 32.6 percent). The average age of the reference person

of families is similar (42 years) for the two

groups.

1

 For more details on changes to published

tables in 2003, see www.bls.gov/cex/

csxexplan03.htm.

2

 A reference person is the first member mentioned by the respondent when asked “to start

with the name of the person or one of the persons who owns or rents.”

3

 A consumer unit includes (1) members of a

household related by blood, marriage, adoption,

or other legal arrangement; (2) a person living

alone or sharing a household with others but who

is responsible for at least 2 of the following 3

major types of expenses—food, housing, and

other expenses; or (3) two or more persons living together who pool their income to make

joint expenditure decisions.

4

 Published tables from the Consumer Expenditure (CE) Survey reflect data integrated from

the CE Interview Survey and the CE Diary Survey.

5

 As defined by the U.S. Office of Management and Budget in 1994.

Expenditures

Although there is no significant difference in

average total expenditures between Asian families and other families, significant differences

appear in five expenditure categories. Asian

families spend significantly less than other families on food at home ($5,177 versus $5,462),

alcoholic beverages ($164 versus $298),

healthcare ($2,059 versus $2,612), and entertainment ($1,787 versus $2,849). However,

Asian families spend signficantly more on housing ($21,052 versus $17,390).

Food, housing, and transportation comprise

70.6 percent of total expenditure for Asian families, compared with 66.3 percent for other families. (See the chart below.) Significant differences in expenditure shares appear in four categories. The expenditure share among Asian

families is significantly higher for housing (38.6

percent compared with 31.9 percent for other

families), but significantly lower for healthcare

(3.8 percent versus 4.8 percent), entertainment

(3.3 percent versus 5.2 percent) and alcoholic

beverages (0.3 percent versus 0.5 percent).

Selected Expenditure Shares of Asian and Other Families,

 Consumer Expenditure Interview Survey, 2003

38.6%

19.2%

12.8%

3.8%

3.3%

3.6%

3.0%

0.3%

31.9%

21.0%

13.4%

4.8%

5.2%

2.5%

3.3%

0.5%

* Housing 

Transportation

Food

* Healthcare

* Entertainment 

Education

Clothing

* Alcoholic beverages 

Asian Other

* Indicates that difference in expenditure between Asians and other CUs is statistically significant at the 95% level.
FIRST CLASS MAIL

Postage and Fees Paid

U.S. Department of Labor

Permit No. G-738

U.S. DEPARTMENT OF LABOR

U.S. Bureau of Labor Statistics

Postal Square Building, Rm. 2850

2 Massachusetts Ave. NE.

Washington, DC 20212-0001

Official Business

Penalty for Private Use, $300

Address Service Requested

Table 1. Selected Characteristics and Expenditures of Asian and Other Families, Consumer Expenditure Interview Survey, 2003

Sample size (rounded) ......................... 10,300 500 9,840

Population ......................................... 28,584,004 1,050,000 27,534,004

 Family characteristics

Average member age .......................... 27.7 27.3 27.7

Number under age 18 .......................... 1.6 1.5 1.6

Number over age 65 ............................ .1 .1 .1

Family size ........................................ 4.0 4.0 4.0

Number of earners .............................. 2.0 1.8 *2.0

Earner composition (% distribution):

Reference person only ................... 13.4 31.3 12.7

Spouse only ................................. 9.9 5.2 10.1

Reference person and spouse ........ 50.4 41.5 50.8

No earners ................................... 1.5 2.0 1.5

Other ........................................... 24.8 20.1 25.0

Home owner (%) ................................. 82.0 70.8 82.4

Live in a Metropolitan Statistical

 Area(%) .......................................... 82.3 99.3 81.6

Region (% distribution):

Northeast ..................................... 19.6 24.6 19.4

Midwest ....................................... 22.7 12.6 23.1

South ........................................... 34.3 20.1 34.8

West ............................................ 23.4 42.7 22.7

Husband and wife with children

All CUs Asian Other

Husband and wife with children

All CUs Asian Other

* Indicates that difference in expenditure between Asians and other CUs is statistically significant at the 95% level.

1

 Income for complete income reporters only. Complete income reporters are respondents who report on at least one major source of income.

 Reference person characteristics

Age ................................................... 41.6 42.3 41.6

Male (%) ............................................ 57.2 74.1 56.6

Education attainment (% distribution):

Less than high school .................... 10.5 7.7 10.6

High school graduate ..................... 25.9 13.6 26.4

Some college ................................ 29.8 15.1 30.4

College graduate ........................... 33.8 63.5 32.6

 Family income and expenditures

Income before taxes ($)1..................... 75,523 76,636 75,483

Total expenditures ($) ......................... 54,548 54,581 54,547

Food ................................................. 7,313 6,986 7,325

At home ....................................... 5,452 5,177 *5,462

Away ........................................... 1,861 1,809 1,863

Alcoholic beverages ............................ 293 164 *298

Housing ............................................. 17,525 21,052 *17,390

Apparel ............................................. 1,793 1,625 1,799

Transportation .................................... 11,421 10,486 11,457

Healthcare ......................................... 2,592 2,059 *2,612

Entertainment ..................................... 2,810 1,787 *2,849

Education .......................................... 1,390 1,974 1,368