Household_Survey_SPST_Pt_B (2013)_Mar12_2013

SUPPORTING STATEMENT

NATIONAL SURVEY OF UNBANKED AND UNDERBANKED HOUSEHOLDS

PART B

B. COLLECTION OF INFORMATION EMPLOYING STATISTICAL METHODS

1. Universe and Respondent Selection

The Census Bureau will conduct the June 2013 National Survey of Unbanked and Underbanked Households supplement (“FDIC supplement”) in conjunction with the Current Population Survey (CPS), for which the universe is expected to be about 120 million U.S. households. From this universe, the Census Bureau selects a statistical sample of approximately 72,000 households each month, of which approximately 59,000 are eligible for CPS. The Census Bureau actually interviews about 54,000 households each month and will ask these households to participate in the FDIC supplement.

The FDIC supplement represents the third administration of this supplement. These surveys were previously conducted in January 2009 and June 2011. As in previous survey efforts, the enumeration unit will be the household, and the respondent will be a household member who participates in the financial decisions of the household.

The response rate for the basic CPS is about 92 percent. Although all respondents to the basic CPS will be invited to participate in the FDIC supplement at the conclusion of the basic CPS interview, there may not be a qualified household member available to provide responses to the FDIC supplement, and no follow-up interview attempts will be made. Therefore, not all of the basic CPS respondents will participate in the FDIC supplement. Based on our experience with the 2009 and 2011 supplements, we expect that about 84 percent of the approximately 54,000 basic CPS respondents will participate in the 2013 FDIC supplement.

If the FDIC supplement response rate does not exceed 80 percent, the FDIC plans to investigate the potential for nonresponse bias by making some basic comparisons of the characteristics of the households that provide responses to the FDIC supplement to those that provide responses to the basic CPS but not to the FDIC supplement. For example, a comparison will be made for renter- or owner-occupied households to see if the percent of renter-occupied households that responded to the FDIC supplement varied from the corresponding percent of households that did not respond to the FDIC supplement. The same type of comparison may be made for other household characteristics that are available, such as type of structure (single or multiple-family) or household size (all persons in the housing unit, including unmarried children under 18 years of age).

If the FDIC finds that the percent of renter-owned units varies much between respondents and nonrespondents to the FDIC supplement, we will check to see if the answers to survey questions varies by renters versus owners, which would give us a measure of the potential for nonresponse bias. The same type of analysis will be conducted for one or two other household variables that are available.

2. Procedures for Collecting Information

The FDIC supplement will be a supplemental survey associated with the CPS in June 2013. Attachment D gives an overview of the CPS sample design and weighting methodology and response rates. As a CPS supplement, the statistical properties of this supplemental survey will be the same as those associated with the CPS itself.

3. Methods to Maximize Response

Response rates and data accuracy for the CPS are maintained at high levels through interviewer instruction, self-study training, and follow-up of refusal interviews with more experienced senior interviewers. Additionally, the Census Bureau closely monitors data output. (Refer to Item 5 of Attachment D for a discussion of the CPS nonresponse.)

4. Testing of Procedures

The Census Bureau performed cognitive testing of the 2013 proposed questionnaire in February 2013 and suggested revisions and recommendations, which are incorporated in the revised survey instrument. A second round of cognitive testing is expected in March 2013. The goal of each round of testing is to determine respondents’ comprehension of each question, test the flow of the questions, find major recall difficulties, ascertain the sensitivity or inappropriateness of any questions, and gauge the operational feasibility of the supplement.

The 2013 questionnaire is similar in content to the 2009 questionnaire which was the result of a collaborative effort between the FDIC and a national consulting firm that specializes in public opinion research, with input from the Census Bureau’s Demographic Surveys Division and the Labor Department’s Bureau of Labor Statistics. The development of the 2009 questionnaire included four rounds of cognitive testing. Later revisions made for the 2011 survey effort were subjected to an “expert review” carried out by Census Bureau staff.

5. Contacts Statistical Aspects and Data Collection

The following Census Bureau staff may be contacted on the statistical data collection and analysis operations:

Statistical Design

Yang Cheng Chief, Current Population Surveys Branch

Demographic Statistical Methods Division

(301) 763-3287

Data Collection/Survey Design

Christopher J. Laskey Assistant Division Chief, Continuing Surveys

Demographic Surveys Division

(301) 763-5312

6. Data Analysis Plan

The main survey estimates to be prepared from the data collected in the June 2013 National Survey of Unbanked and Underbanked Households will be the number and percentage of households (and persons 16+) that are “unbanked” (i.e., do not have a deposit account at a bank or credit union) or “underbanked” (i.e., have a deposit account but also rely on alternative, non-bank financial service providers). These estimates will be prepared for the nation, for states, and for large metropolitan areas (MAs).

For unbanked households, results from the FDIC supplement will be used to quantify the reasons why households are unbanked. For both unbanked and underbanked households, estimates will be prepared of the usage levels of alternate, non-bank financial services, such as check cashing firms, payday lenders, pawn shops, and, auto title loans, rent-to-own service providers.

Also, the economic and demographic information included in the CPS will be used to prepare tables that show, and allow comparisons of, the economic and demographic characteristics of unbanked, underbanked, and banked households. Furthermore, this basic CPS data will permit the FDIC to examine whether the usage of and reasons for choosing alternative non-bank financial services providers varies across economic or demographic segments of the population.

The FDIC will produce cross-tabulations of many of the basic CPS variables with responses to questions about the following items: account ownership, reasons for not having a deposit account (for unbanked respondents), the usage of specific alternative nonbank financial services, the reasons for use of these services, and the usage of prepaid cards.

Cross-tabulations of survey results will be produced for the nation, for states, and for large MSAs. Please refer to the 2011 Household Survey Report (Attachment A-4) for examples of the type of analysis that will be performed with the survey data.

ATTACHMENTS

A1. FDIC National Unbanked and Underbanked Household Survey (English version)

A2. Description of the revisions to the 2011 FDIC National Unbanked and Underbanked Household Survey

A3. Redlined version of the survey instrument highlighting differences relative to the 2011 survey.

A4. 2011 FDIC National Survey of Unbanked and Underbanked Households Report

B. Current Population Survey – Advance Letter and Frequently Asked Questions

C1. Current Population Survey Confidentiality Brochure

C2. Fact Sheet for the Current Population Survey

D. Current Population Survey Design and Methodology Overview, October 2006 (available at the following link: http://www.census.gov/prod/2006pubs/tp-66.pdf