1 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

2023 CE Microdata Users’ Workshop

Development of FINLWT21

and Related Variables

Brian T. Nix

Consumer Expenditure Survey

Statistical Methods Division

Bureau of Labor Statistics

Wednesday, July 19, 2023
2 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

The Function of Weights

◼Unweighted averages will describe the 

respondents to our survey

◼Weighted averages will describe the 

entire country
3 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Overview

• Selecting a Sample of Households

• Calculation of Weights

• Base Weight

• Adjustment Factors

• FINLWT21

• Conclusion
4 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Selecting a Sample of Households

• We don’t have enough resources to visit 

every household in America

• Therefore, we must select a stratified 

random sample of households
5 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Selecting a Sample of Households:

Our Two-Stage Sample Design

• Geographic areas are randomly selected to 

represent the total U.S. 

• Households are randomly selected to 

represent the geographic areas

• Guiding principle:

“Randomness ensures representativeness.”
6
7 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Selecting a Random Sample of Households

➢ Sort households from poor to rich based on 

information from Decennial Census and ACS

➢ Compute the sampling interval for each PSU

• Sampling interval = (# addresses in sampling frame) 

(# addresses in CE sample)

➢ Typical sampling intervals:

• Every 1,000th address (N and R PSUs)

• Every 5,000th address (S PSUs)
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Calculation of Weights
9 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

The Function of Weights

◼Unweighted averages will describe the 

respondents to our survey

◼Weighted averages will describe the 

entire country
10 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Base Weight

◼ Initial representation of how many 

households each CU in our survey represents

◼ The same across each PSU in survey

◼ ~10,000

◼ So each household in the survey initially represents itself 

and 9,999 other households not selected for the survey
11 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Calculation of Weights:

Calculating the Base Weight

(using hypothetical values)

➢ Stratum population 3,000,000

➢ PSU Population 600,000

▪ Census Bureau shows 230,000 housing units

▪ 115 addresses allocated for each survey

▪ “Take Every” = 230,000 / 115  2,000

➢ PSU Weight = 3,000,000 / 600,000 = 5.000

➢ Base Weight = “Take Every” * PSU Weight

 2,000 * 5.000 = 10,000
12 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Adjustment Factors

◼ Non-interview Adjustment Factor

Adjusts for Type A non-interviews

About 2.30

Gradually increasing over time

◼ Calibration Adjustment Factor

Adjusts sample estimate to CPS Totals

About 1.10 for Interview Survey

About 2.20 for Diary Survey
13 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Calculation of Weights:

Calculating the Final Weight

➢ Variable FINLWT21

➢ = Base Weight 

x Non-Interview Adjustment Factor 

x Calibration Adjustment Factor

➢ 25-30,000 on average for Interview Survey

➢ 45-50,000 on average for Diary Survey
14 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Conclusion

◼Weighted calculations describe the 

entire country

➢ (not just our respondents)

◼Sample Selection and Weighting work 

together to produce:

➢ unbiased estimates of U.S. Expenditures

➢ subject to allotted CE budget
Contact Information

15 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Brian T. Nix

Mathematical Statistician,

Statistical Methods Division,

U.S. Bureau of Labor Statistics

www.bls.gov/cex

Nix.Brian@bls.gov