Support #2262
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Analysing debt: how to deduct mortgage debt and which weights to apply
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Description
Hi,
I was wondering if you have suggestions on best practices for an analyses of debt using the "debty" variable asked in waves 4, 8, 13. Specifically,
1. Is there a way you'd suggest to calculate non-mortgage debt amounts? I see that mortgage information is recorded in a number of variables outside of the wealth modules. Would there be a (best) way to go about this?
2. I was also wondering which weights are best for a pooled cross-sectional analyses of waves 4, 8, and 13. Would it be via indinub (W4) and indinui (W8, W13) or should I perhaps rely on the weight for the "extra five minutes" questions (which seem to include "debty")?
Thanks so much for your help. I deeply appreciate it.
All the best,
Gabriele
Updated by Understanding Society User Support Team 21 days ago
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Hello Gabriele
Regarding your first question, I’ve shared it with the Income Team to get their input. I’ll forward their response to you as soon as I hear back.
As for your second question: when conducting pooled cross-sectional analyses, you need to use the wave-specific weights. The best approach is to carefully consider whom you want your analysis to represent, as this determines the correct weighting strategy.
Issue #2167 (https://iserredex.essex.ac.uk/support/issues/2167) addresses a similar question, though in that case the pooled analysis involved both BHPS and UKHLS. Nonetheless, the underlying logic applies in your case as well.
I’d also recommend reviewing Working Paper 2024-01: Weighting FAQ: https://www.understandingsociety.ac.uk/wp-content/uploads/working-papers/2024-01.pdf In particular, take a look at Questions 14 to 16, which are especially relevant to your query.
I hope this information is helpful.
Best wishes,
Roberto Cavazos
Understanding Society User Support Team
Updated by Understanding Society User Support Team 13 days ago
Hello Gabriele,
The variable debty captures the total amount of debt associated with the question "debt," and it does not include mortgages. You can confirm this in the Question Universe, which states:
if DEBT (96|DK|REF) (Holds any sort of debt)
See: https://www.understandingsociety.ac.uk/documentation/mainstage/variables/debty/
If you look at the debt question text — “I would now like to ask you about any other financial commitments you may have apart from mortgages. For which, if any, of these items do you currently owe any money? Please do not include credit card and other bills being fully paid off in the current month.” — you’ll see that there are ten associated variables, one for each response option.
You might want to explore the following variables: debt1 to debt10, as well as debt96 and debt97.
For further details, please refer to the Wealth, Assets and Debt module questionnaire here:
https://www.understandingsociety.ac.uk/documentation/mainstage/questionnaire-modules/wealthassetsanddebt_w13/
And for specific variables, use the Mainstage Variables search:
https://www.understandingsociety.ac.uk/documentation/mainstage/variables/
I hope this information is helpful.
Best wishes,
Roberto Cavazos
Understanding Society User Support Team