Chapter-2

Collection of Data
The present chapter focuses on the collection of data, including:
(i) Sources of data, and
(ii) Methods of collecting the data.
But before that we must know why we collect the data.
For a student of economics, the purpose of data collection is to understand, analyses and explain the socio
economic problem, for example the problem of unemployment and the problem of poverty.
While analyzing the problem we also understand the cause behind the problem and also the possible solution.
The entire excise needs a comprehensive support of numerical facts, called data.

Sources of Data
Primary Source of Data Secondary Source of Data

Basic They are original. They are not original.

Originality

Time and The collection of primary data There source is relatively cheaper.
Cost required lots of manpower, money
and time.

Precaution No precaution is required while It should be used with great care and
using primary data. caution.

Sources They are collected by some agency They already collected and process by
or person by using the method of some person or find the volume of the
Data Collection. agency and is ready for use.

Some Statistical Method to Collect the Data

1. Direct personal investigation.

2. Indirect oral investigation.
3. Information from local sources of correspondent.
4. Information through questionnaires and schedules.

(A) Mailing Method (B) Enumerator’s Method

Direct personal investigation

In this method data is personally collected by the investigator from the informants. In another words, the
investigation establishes direct relation with the person from whom the information is to be obtained.

Suitability

1. When the field of Investigation is limited or not very large.

2. Where the greater degree of originality is required.
3. Where the information need to be kept secret.
4. Accuracy of the data is of great significance.
5. When direct contact with the informant is required.
Merits

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 1. High degree of originality.
2. Data is fairly accurate.
3. Data is reliable because collected by investigator himself.
4. Related information can be obtained.
5. Uniformly because the data is directly connected by investigator himself.
6. Elastic because the investigator can always make necessary adjustments in his set of questions.

Demerits

1. Difficult to cover a large area.

2. This method is highly prone to personal bias.
3. Costly in terms of time, money and effort involved.
4. The investigation is generally cover Limited area.

Indirect Oral Investigation

Information is obtained not from the persons regarding whom the information is needed. It is collected orally
from other persons who are expected to possess the necessary information. These other persons are known
as witness.

Suitability

1. The field of Investigation is relatively large.

2. Where it is not possible to have direct contact with the concerned informants.
3. Where the concerned informants are not capable of giving information because of their ignorance or
illiteracy.
4. Investigation is so Complex in nature that only experts can give information.

Merits

1. Suitable for wide coverage.

2. Relatively less expensive.
3. Expert opinion and more reliable.
4. Relatively less biased.
5. Simple approach of Data Collection.

Demerits

1. Less accurate.
2. Biased (witnesses).
3. Doubtful conclusion due to carelessness of the witnesses.

Information from Local Sources of Correspondence

Investigators appoints local persons or correspondence at different places. They collect information in their
own way and furnish the same to the investigator.

Suitability

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 1. Where regular and continuous information is needed.
2. Where the area of Investigation is large.
3. This information is used by journals, magazine's, Radio, TV etc.
4. Very high degree of accuracy of information is not required.

Merits

1. This message is quite economical in terms of time, money or effort involved.

2. Wide coverage of Investigation.
3. Correspondence keep on supplying almost regular information.
4. Suitable for special purpose.

Demerits

1. Loss of originality due to lack of personal contact with the respondents.

2. Lack of uniformity because data was collected by number of correspondence.
3. Personal bias (Correspondents).
4. Less accurate.
5. Delay in collection.
Information to Questionnaires and Schedules
Investigator prepare a questionnaire keeping in view the objective of the enquiry. There are two ways of
collecting information.

1. Mailing
2. Enumerators
Mailing Method

The questionnaire a mail to the informant. A letter is attached with the questionnaires giving the purpose of
enquiry. It is also assured that the information would be kept secret.

Suitability

1. The area of the study is very wide.

2. The informants are educated.

Merits

1. Economical in terms of time, money and effort involved.

2. Original therefore fairly reliable.
3. Cover wide area.

Demerits

1. Lack of interest of informant.

2. Lack of flexibility (questions are not possible to change).
3. Limited use because answered by educated person.
4. Biased (informants can be biased).
5. Less accuracy because some questions may be difficult, and consequently accurate answer may not
be offered.

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Enumerator’s Method

A questionnaire is prepared according to the purpose of enquiry. The enumerator himself approaches the
informant with the questionnaire.

Suitability

1. Field of Investigation is large.

2. The investigation needs specialized and skilled investigator.
3. The investigators are well versed in the local language and cultural norms of the informants.

Merits

1. Wide coverage (even illiterate can furnish the required information).

2. Accuracy because investigation done by specialized enumerators.
3. Personal contact.
4. Impartiality of an enumerator.
5. Completeness because there are filled in by the enumerator themselves.

Demerits

1. Expensive.
2. Availability of enumerators.
3. Time consuming.
4. Not suitable for private investigation.
5. Partial (if enumerators are biased, then the data will not be accurate).

Qualities of a Good Questionnaire

Following are some of the desired qualities of a Good Questionnaire:

1. Limited number of questions: The number of questions in a questionnaire should be as limited as

possible. Questions should be only related to the purpose of enquiry.

2. Simplicity: Language of the question should be simple, lucid and clear. Question should be shot, not
long or complex. Mathematical question must be avoided.

3. Proper order of the questions: Questions must be placed in a proper order

4. No undesirable questions: Undesirable questions of personal question must be avoided the question
should not offend the informants.

5. Non-controversial: Question should be such as can be answered impartially. No controversial

questions should be asked.

6. Calculations: Questions involving calculations by the respondents must be avoided. Investigator

himself should do the calculation job.

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 7. Pre testing pilot survey: Can questions be asked from the informants on trial basis. If their answers
involve some difficulty these can be reframed accordingly. Search testing is technically called pilot
survey.

8. Instructions: A questionnaire must show clear instructions for filling in the form.

9. Cross verification: Such questions may be asked which help cross verification.

10. Request for return: Request should be made to the respondents to return the questionnaire complete
in all respects, the informant must be assured that the information conveyed by him will be treated as
confidential

Collection of Secondary Data

1. Published sources
2. Unpublished sources

Published Sources

1. Government Publication - annual survey of industries, agricultural statistics of India, Reserve Bank
of India Bulletin etc.
2. Semi government Publication - published by municipalities and Metropolitan councils publish data
relating to education, health birth and death.
3. Reports of committees and commissions - they are appointed by the government. Finance
commission, Planning Commission.
4. Publication of trade Association - they collect and publish data on various aspect of trading activity.
e.g.- Sugar Mills Association
5. Publications of Research Institute - various Universities and Research Institute of this information is
finding of the research activity e.g. - Indian statistical Institute.
6. Journals and papers - The Economic Times
7. Publication of research scholars
8. International publications such as UNO, IMF and World Bank

Unpublished Sources

These data collected by the government organizations and others. Generally used for self-use or office
record.

Precaution in the use of secondary data

1. Ability of the collecting organization.

2. Objective and scope should be matched.
3. Method of collection should be matched.
4. Time and conditions of collection should be considered (wartime and peacetime).
5. Definition of units (population of women 100 per male or hundred per male should be specified).
6. Accuracy of data.

Two important sources of secondary data “Census of India” and “Reports and Publication of National
Sample Survey Office”.

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Census of India

It collects information regarding -

1. Size, growth rate and distribution of population in India.

2. Population projection.
3. Density of population.
4. Sex composition of population.
5. State of literacy.

Reports and Publication of National Sample Survey Office (NSSO)

NSSO is a government organization which publish information regarding -

1. Land and livestock holding.

2. Housing condition and migration with special emphasis on slum dwellers.
3. Employment and unemployment status of India.
4. Consumer expenditure in India.
5. Sources of household income in India (including level and pattern of consumer’s expenditure of
diverse categories of the India).

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