The Consumer Expenditure 

Survey (CE)

Microdata Users’ Workshop

Wednesday, July 16, 2014

Ryan Pfirrmann-Powell
Outline

 Mission and History of the CE

 Data Uses

 Survey Design

 Variance Factors

 CE Projects

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Mission

 The mission of the CE is to collect, produce, and 

disseminate information that presents a statistical 

picture of consumer spending for the Consumer 

Price Index, government agencies, and private 

data users. 

 The mission encompasses analyzing CE data to 

produce socio-economic studies of consumer 

spending, and providing CE data users with 

assistance, education, and tools for working with 

the data.

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History

 1888-1891: First BLS expenditure survey

 1972-1973: Census Bureau begins survey 

collection for BLS. First use of weekly Diary 

and 3-month recall Interview

 1979: The CE starts annual data collection

 2003: Computer Assisted Personal Interview 

(CAPI) starts

 2004: Introduction of Imputed Income to fill 

in missing values

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History

 2013: Introduction of Estimated Income 

Taxes to replace collected and missing values

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Data Tables

 Tables are broken out by 15 standard 

demographic characteristics

•Before-tax income class 

•Higher income 

•Quintiles of income 

•Composition of CU

•Size of CU

•Age 

•Selected Age of the 

reference person 

•Highest-Education level 

•Race 

•Hispanic Origin 

•Housing tenure and 

Urban/Rural 

•Number of earners 

•Occupation

•Population size of area

•Census Region

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Publications

 Comparison Articles

 Beyond the Numbers

 MLR Articles

 Spotlight on Statistics

 The Editor’s Desk

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CE Customers

 Expenditure Weights used in the CPI

 Government

Defense Department

IRS

 Media

 Market Research

 Academic Research

 YOU!!!

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Department of Defense

 The Department of 

Defense uses CE data in 

calculating cost-of-living 

allowances for military 

personnel not living on 

military bases 

 The CE annually provides 

3-year compilations of 

expenditures by these 

personnel

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IRS

 The CE produces 

special data 

tabulations on the 

purchase of taxable 

items for use in 

calculating sales tax 

deductions 

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CE Terms

 Consumer Unit (CU): 

 all members of a particular household who are related by 

blood, marriage, adoption, or other legal arrangements; 

 a person living alone or sharing a household with others or 

living as a roomer in a private home or lodging house or in 

permanent living quarters in a hotel or motel, but who is 

financially independent; 

 or two or more persons living together who use their income 

to make joint expenditure decisions. 

 Reference Person: 

 The first person listed by the respondent when asked who 

own or rents the home.

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Sample Design

 National probability sample of households 

designed to represent the total U.S. civilian 

non-institutional population. 

Includes: persons living in houses, 

condominiums, apartments, and group quarters 

such as college dormitories.

Excludes: military personnel living on base and 

nursing home residents, as well as people in 

prisons or other institutions.

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Survey Design

 Interview Survey

designed to collect data on the types of 

expenditures that respondents can be 

expected to recall for a period of 3 months 

or longer (e.g. vehicles, appliances, rent).

 Diary Survey

designed to collect detailed expenditure 

data on small, frequently purchased items 

(e.g. food, personal care items).

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Interview Survey Design

 Quarterly interviews with 22 sections

 Sample: 7,000 Consumer Units

About 28,000 interviews annually

Interview

Demographics

Inventory

Expenditures

Income

Interview

Expenditures

Interview 

Expenditures

Interview 

Expenditures

Income

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Diary Survey Design

 2 consecutive one-week diaries

 Respondent records every item 

purchased in a diary.

 Sample: 7,000 Consumer Units

about 14,000 Diaries annually

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Survey Integration

 Published Tables:

Neither survey collects the entire universe 

of expenditures. 

Some data are only collected in one 

instrument.

Some data are collected in both 

instruments - for these areas we determine 

which is the best source and use that in 

our publications.

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Data Availability

 Published Tables Online 

Annual tables

Mid-year tables 

 Prepublication Tables

Greater detail (currently by request only)

 Microdata

Greatest detail

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Things to keep in mind 

while using CE data

 Spending based on CU

Not per capita

 Income and expenditures 

Different time periods

 Out-of-Pocket expenditures

 Very limited spatial data is public

Not all states are sampled 

Most geographic data is suppressed

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Variance Factors

 Sampling Error

Standard Errors measured by BRR 

(Balanced Repeated Replication)

 Non-Sampling Error

Proxy reporting

Lack of proper cues

Unwillingness to disclose information

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Gemini Project

 Mission: Improve Data Quality

 Motivation:

Same basic design for past 30 years

Evidence of measurement error

Technological advances

 Events and Activities:

March 2014 Redesign project high-level timeline

April 2014 Data Users’ Impact Team Report

 http://www.bls.gov/cex/geminimaterials.htm

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Gemini Proposal

 Single sample of CUs, participating in two 

waves of data collection, 12 months apart.

 Monetary incentives for survey participation.

 Each wave comprised of two visits with one 

CU respondent, plus weekly electronic diary 

for each CU member age 15 and older.

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Diary Week

Open-ended, collecting all 

expenditures for 1 week

Visit 1: Recall Interview

3-month reference period for 

expenditures that are easily recallable

Advance mailing

Post-Wave 2:

Non-monetary incentive

CE Experience Package

Gemini Proposal

Visit 2: Records Interview

3-month reference period for 

expenditures likely found in records 

(utility bills, pay stubs, etc.)

Wave 2: Repeat 12 mo.’s later

Respondent engagement 

mailing between waves

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Other CE Projects

 Tax Estimation using NBER model 

(2013)

 Individual Diary field test (2014)

 Sample Redesign (2015)

 Biennial Questionnaire Revision (2015)

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CE Website

 Beyond the Numbers

 Data Comparisons

 Microdata Documentation

 Microdata

 CAPI

 Glossary

 Data Tables

 Respondent Website

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Contact Information

Division of Consumer 

Expenditure Survey

www.bls.gov/cex

202-691-6900

CEXINFO@bls.gov