The individual household method (IHM®) provides reliable estimates of household income, with detailed information on household assets, demography and specific income sources. This data can be used to support the design and targeting of development policies and programmes, and to monitor and evaluate their impact.
The individual household method has been developed by Evidence for Development to overcome problems with widely-used surveys and extend household economy methodology – notably the household economy approach (HEA) – to provide more detailed household-level analysis, as well as facilitating studies in both urban and rural areas. Whereas HEA studies collect information on ‘typical’ households from defined sections of the population through group interviews, the individual household method collects information on actual households directly from their members. This enables IHM studies to identify more complex variation across populations than is possible with the HEA and to model the impact of changes on a much wider range of population groups, with data disaggregated by demographics (gender and age), income levels and other chosen characteristics.
The individual household method differs from most other household budget surveys by collecting data through a semi-structured interview rather than a standard questionnaire format, as well as by using specialised software which allows data checking and analysis to be carried out in the field. These innovations reduce the risk of errors in data collection, and allow any errors that do occur to be identified and corrected early in the process. Rapid analysis can also provide up-to-date information needed by decision makers.
NGOs, governments and academics are increasingly using the individual household method to design, target, monitor and evaluate poverty-reduction programmes. It is also used to calibrate other poverty measures, to predict and mitigate the impacts of economic shocks, and to estimate the scale of needs and the affordability of goods and public services such as health and education.
The first stage of IHM research is the identification of livelihood zones and selection of survey sites within the zone. After sampling decisions have been made and locations have been selected, contextual information on the local economy is collected from focus groups including women and men involved in different economic activities. This provides interviewers with data that can be used to cross-check responses from individual households.
Selected households are then interviewed, following a structure that is designed to include all relevant income sources and related details without unnecessary questions. The interview covers household demography, assets, crop and livestock production, employment (including day labour, petty trade, self-employment and salaried work undertaken by men, women and children in the household), wild foods and non-market transfers. Other personal or household characteristics relevant to the study (for example, the gender of the household head or the educational level of each member of the household) are also recorded during the interview.
On the day of collection, interview data is entered into open-IHM software and checked for internal consistency, biological adequacy and disparities with observed living conditions. If anomalies are found or if any further information is needed the household is revisited, and where necessary datasets are amended. The software can then generate output that shows:
IHM is a registered trademark of Evidence for Development.