“Happy Birthday”: 

Life Events as Reminders of 

Spending

Brett McBride

Division of Consumer Expenditure Survey

CE Survey Methods Symposium

July 15, 2014
Motivation

 Improve CE data quality by limiting underreporting 

caused by recall error

 Examine aided recall methods prompting respondent 

recall of expenses main CE Quarterly Interview 

Survey (CEQ) questions didn’t prompt

 CE study attempting to balance respondents’ income 

& expenditures found life events often used to 

add/revise expenditure reports (Fricker et al, 2011), 

suggesting some association of events with expenses

2
Overview

 Related research: aided recall methods

 Research approach

 Findings

what events reported (how they compare)

how events associate with expenditures

do events cue new reporting?

 Conclusion

3
Aided Recall Methods

SIPP study (Hillmer et al., 2011)

 Used Event History Calendar (EHC) to identify durations 

of prior year events and how they line up with possible 

changes in employment, residency and health insurance

 Found life events only reported by 1⁄3 of sample

 Those with relevant change (e.g. new job) often 

had no corresponding event report – events 

significant to respondent not necessarily relevant 

for topic of survey

 Re-engineered SIPP to use a 12-month EHC

4
Aided Recall Methods

PSID study (van der Vaart et al., 2010)

 Used EHC to assist recall of events over a 2-3 year period

 Found recency effect in events reported

 Found females reported more events than males

 Associations between events and reporting 

accuracy for labor force measures were weak or 

non-existent 

5
Aided Recall Methods

Dutch telephone survey 

(van der Vaart and Glasner, 2011)

 Used calendar methods to test associations with 

respondent demographics and accuracy

 Found weak positive associations of events and 

recall accuracy

 Suggested landmarks most effective if they are:

 Important

 Domain-relevant

 Personal events

6
Research Approach

 Use of aided recall slightly different than in 

earlier studies

Not focused on interrelationship of events in time 

using visual calendar

Focused on whether events prompted reporting of 

associated expenditures

 Were not able to definitively identify if life 

events cued new expenditure reports

 Were able to get better idea of how method 

could be used

7
CEQ Data

 Pooled cases completing interviews between 

April and September of 2012

 Part of a series of research section questions 

asked of respondents completing wave 5 

interviews

8
Life Event Questions

 Event question 1

“Since the first of [reference 

month] have you or your 

household had any major life 

events; things such as 

birthdays, weddings, moves, 

or new jobs?”

[if yes]:

• “What was the event?”

• “When was the event?”

• “What expenses did you 

have related to the event?”

• “When was the expense?”

 Event question 2

“Since the first of [reference 

month] have you or your 

household experienced any 

other unusual or memorable 

events?”

[if yes]:

• “What was the event?”

• “When was the event?”

• “What expenses did you 

have related to the event?”

• “When was the expense?”

9
Life Event Questions

 Event question 1

“Since the first of [reference 

month] have you or your 

household had any major life 

events; things such as 

birthdays, weddings, moves, 

or new jobs?”

[if yes]:

• “What was the event?”

• “When was the event?”

• “What expenses did you 

have related to the event?”

• “When was the expense?”

 Event question 2

“Since the first of [reference 

month] have you or your 

household experienced any 

other unusual or memorable 

events?”

[if yes]:

• “What was the event?”

• “When was the event?”

• “What expenses did you 

have related to the event?”

• “When was the expense?”

10
Methods

 Combined events (for those reporting 2)

 Classified events into categories with 

double-coding:

Coder used word-recognition to code 1,132 events 

into 11 larger event categories

Three other coders independently classified events 

into same 11 categories

Coder groups discussed ways to handle 

discrepancies (occurred for 11% of events)

11
Findings: Who 

Report Life Events?

 CUs with life events (versus those with 

none reported):

Had more CU members

Had no significant difference in incomes 

(on a per-earner basis)

Were more likely to have at least some 

college education (reference person)

Were not significantly different by gender 

(reference person)

12
Findings: How Many Life 

Events Reported?

13

71%

24%

4%

Number of Life Events Reported (among 3,421 CUs)

0 1 2
Findings: What Type of 

Life Events are Reported?

Event Type (1st & 2nd) N Percent

1 Birthday 563 50%

2 Change in job 132 12%

3 Move 89 8%

4 Other* 74 7%

5 Medical event 67 6%

6 Wedding 59 5%

7 Death 48 4%

8 Birth 34 3%

9 Graduation 27 2%

10 Anniversary 25 2%

11 Divorce/separation 12 1%

Total 1,130 100%

*uncombinable (e.g., 'dinner for children,' 'son put into wilderness program') 14
Life Event Questions

 Event question 1

“Since the first of [reference 

month] have you or your 

household had any major life 

events; things such as 

birthdays, weddings, moves, 

or new jobs?”

[if yes]:

• “What was the event?”

• “When was the event?”

• “What expenses did you 

have related to the event?”

• “When was the expense?”

 SIPP Study question

“... are there any events 

during the last calendar year 

[2010] that stand out in your 

mind that you are able to date 

exactly or approximately? 

These might be family, 

financial, job, social or health 

related events?”

15
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type Percent

1 Birthday

2 Change in job

3 Move

4 Other*

5 Medical event

6 Wedding

7 Death

8 Birth

9 Graduation

10 Anniversary

11 Divorce/separation

Total

16
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type Percent

1 Birthday

10 Anniversary

Total

17
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

Total

18
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5 Medical event

7 Death

Total

19
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

Total

20
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 Moves

Total

21
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 3 Moves ("Residences") 12%

Total

22
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

2 Change in Job

Total

23
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 3 Moves ("Residences") 12%

2 4 Change in job ("Employment") 11%

Total

24
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 3 Moves ("Residences") 12%

2 4 Change in job ("Employment") 11%

8 Birth

Total

25
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 3 Moves ("Residences") 12%

2 4 Change in job ("Employment") 11%

8 5 Births/engagements ("Life course events") 8%

Total

26
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 3 Moves ("Residences") 12%

2 4 Change in job ("Employment") 11%

8 5 Births/engagements ("Life course events") 8%

9 Graduation

Total

27
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 3 Moves ("Residences") 12%

2 4 Change in job ("Employment") 11%

8 5 Births/engagements ("Life course events") 8%

9 6 Graduation ("Education") 8%

Total

28
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 3 Moves ("Residences") 12%

4 Other

Total

29
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 3 Moves ("Residences") 12%

2 4 Change in job ("Employment") 11%

8 5 Births/engagements ("Life course events") 8%

9 6 Graduation ("Education") 8%

4 7 Other 5%

Total

30
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 3 Moves ("Residences") 12%

2 4 Change in job ("Employment") 11%

8 5 Births/engagements ("Life course events") 8%

6 Wedding

11 Divorce/separation

Total

31
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 3 Moves ("Residences") 12%

2 4 Change in job ("Employment") 11%

8 5 Births/engagements ("Life course events") 8%

9 6 Graduation ("Education") 8%

4 7 Other 5%

6,11 8 Wedding/divorce/separation 3%

Total

32
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 3 Moves ("Residences") 12%

2 4 Change in job ("Employment") 11%

8 5 Births/engagements ("Life course events") 8%

9 6 Graduation ("Education") 8%

4 7 Other 5%

6,11 8 Wedding/divorce/separation 3%

- 9 "Calendar" (national- holidays/events) 3%

Total

33
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 3 Moves ("Residences") 12%

2 4 Change in job ("Employment") 11%

8 5 Births/engagements ("Life course events") 8%

9 6 Graduation ("Education") 8%

4 7 Other 5%

6,11 8 Wedding/divorce/separation 3%

- 9 "Calendar" (national- holidays/events) 3%

- 10 "Major financial" (income change, big purchase) 1%

Total

34
Findings: What Type of 

Life Events are Reported?

CE SIPP Event Type (SIPP name in parentheses) Percent

1,10 1 Birthdays/anniversaries ("Occasions") 32%

5,7 2 Medical event / death 16%

3 3 Moves ("Residences") 12%

2 4 Change in job ("Employment") 11%

8 5 Births/engagements ("Life course events") 8%

9 6 Graduation ("Education") 8%

4 7 Other 5%

6,11 8 Wedding/divorce/separation 3%

- 9 "Calendar" (national- holidays/events) 3%

- 10 "Major financial" (income change, big purchase) 1%

- 11 "Government programs/health insurance" 1%

Total 100%

35
Findings: Events 

Associated with Expenses

 “What expenses did you have related to the 

event?”

 Mix of responses (some descriptive, some 

dollar amounts)

 Divided responses into three groups: 







36

Events with expense (e.g., “$40 gift”, “cake”)

Events with no expenses (e.g., “$0”, “none”)

Events with unknown expense
Findings: Events 

Associated with Expenses

 “What expenses did you have related to the 

event?”

 Mix of responses (some descriptive, some 

dollar amounts)

 Divided responses into three groups: 







37

Events with expense (e.g., “$40 gift”, “cake”) 63.5%

Events with no expenses (e.g., “$0”, “none”)

Events with unknown expense
Findings: Events 

Associated with Expenses

 “What expenses did you have related to the 

event?”

 Mix of responses (some descriptive, some 

dollar amounts)

 Divided responses into three groups: 







38

Events with expense (e.g., “$40 gift”, “cake”) 63.5%

Events with no expenses (e.g., “$0”, “none”) 30.1%

Events with unknown expense
Findings: Events 

Associated with Expenses

 “What expenses did you have related to the 

event?”

 Mix of responses (some descriptive, some 

dollar amounts)

 Divided responses into three groups: 







39

Events with expense (e.g., “$40 gift”, “cake”) 63.5%

Events with no expenses (e.g., “$0”, “none”) 30.1%

Events with unknown expense 6.4%
Findings: 

1. Birthday Events

40

 50% of events (n=563)

33%

No Expense

65%

Expense

3%

DK

Percent of Events with 

Expenses
Findings: 

1. Birthday Events

41

 Analyzed amounts for those reporting a birthday event 

and providing non-zero dollar amount (first event, n=249)

$283

$120

$0

$50

$100

$150

$200

$250

$300

Mean Median

Birthday expenses
Findings: 

2. Change in Job Events

42

 12% of events (n=132)

54%

No Expense 40%

Expense

6%

DK

Percent of Events with 

Expenses
Findings: 

2. Change in Job Events

43

 Those reporting a change in job event and providing 

non-zero dollar amount (first event, n=28)

$2,348

$260

$0

$500

$1,000

$1,500

$2,000

$2,500

Mean Median

Change in job 

expenses
Findings: 

3. Moving Events

44

 8% of events (n=89)

15%

No Expense

78%

Expense

7%

DK

Percent of Events with 

Expenses
Findings: 

3. Moving Events

45

 Those reporting a moving event and providing non-zero 

dollar amount (first event, n=42)

$1,248

$600

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Mean Median

Moving expenses
Findings: 

Overall Event Expenses

 Aside from change in job, most events were 

expense events more frequently than not

 In terms of the magnitude of expenses, the 

most frequently-reported expense events 

(e.g., birthday, change in job) were not the 

ones associated with the largest expenditures

46
Findings: 

Overall Event Expenses

47

Event Type N Percent Mean Median

Birthday 249 59% $283 $120 

Change in job 28 7% $2,348 $260 

Move 42 10% $1,248 $600 

Other 13 3% $9,485 $550 

Medical event 13 3% $10,330 $600 

Wedding 35 8% $3,561 $700 

Death 13 3% $3,250 $600 

Birth 9 2% $2,231 $500 

Graduation 14 3% $384 $225 

Anniversary 8 2% $393 $83 

Divorce/separation 1 0% $4,000 $4,000 

Total 425 100%

(Non-Zero) Expenses Associated with 1st Event Reports (N=425)
Findings: 

Did Events Cue Reporting?

 Regressed CU event reports (expense events, 

events with no expenses, no events) on 

expenditures; controls for age, tenure, HH 

income, number of reported events.

 Did CUs with expense events report more in 

response to the standard interview questions 

than other CUs, suggesting expense event 

amounts had been previously incorporated 

into the survey questions?

48
Findings: 

Did Events Cue Reporting?

Coefficient SE

Intercept 4.373*** (0.163)

Log(HH income) 0.442*** (0.015)

Age (reference person) -0.003*** (0.006)

Household size 0.050*** (0.020)

Tenure (own) 0.155*** (0.001)

Expense event 0.118* (0.055)

Event with no expense -0.032 (0.056)

Event with unknown expense -0.030 (0.079)

Number of events reported (0,1,2) 0.032 (0.043)

Model R2=0.56

*p<.05; **p<.01; ***p<0.001

49
Findings: 

Did Events Cue Reporting?

Coefficient SE

Intercept 4.373*** (0.163)

Log(HH income) 0.442*** (0.015)

Age (reference person) -0.003*** (0.006)

Household size 0.050*** (0.020)

Tenure (own) 0.155*** (0.001)

Expense event 0.118* (0.055)

Event with no expense -0.032 (0.056)

Event with unknown expense -0.030 (0.079)

Number of events reported (0,1,2) 0.032 (0.043)

Model R2=0.56

*p<.05; **p<.01; ***p<0.001

50
Findings: 

Did Events Cue Reporting?

 CUs with expense events reported significantly 

more in total expenditures (vs CUs w/ no events)

Suggests that some or all of their event-related 

expenses had been captured through the current 

interview questions

 CUs with no expenses associated with events did 

not report more in expenditures than those with 

no life events reported

 Found no significant association between how 

many events reported and total expenditures

51
Summary

 28% of CUs reported at least 1 life event 

 64% of reported events involved expenses

 Most frequent events – ‘birthdays,’ ‘change in 

job’ (tended to have lower associated 

expenses)

 Some events did not have expenses involved

 Findings suggest CUs reporting expense 

events were not underreporting associated 

expenses at prior questions

52
Conclusions

 Findings encouraging: what respondents consider 

salient expense events in their recent past are not 

being overlooked when they respond to CEQ

 Personal events easier to recall than proxy events, 

yet less likely to be associated with underreported 

expenditures

 Use of life events may be more effective as a 

bounding technique than a cuing technique...

 In CE, events viewed as personally significant are 

distributed over time, limiting their use as a universal 

reference period for bounding

53
Contact Information

Brett McBride

Economist

Division of Consumer Expenditure 

Surveys/

Office of Prices and Living Conditions

www.bls.gov/cex

202-691-5136

mcbride.brett@bls.gov