January 2009 Accra, Ghana Household satellite accounts on production and consumption of unpaid work services. Proposed methodology Proposed methodology María Eugenia Gómez Luna Coordinación de Asesores. INEGI Global Forum on Gender Statistics

2 Objective This presentation deals with a proposed methodology to compile satellite accounts on production and consumption of UNPAID HOUSEHOLD SERVICES within the System of National Accounts 1993, using the National Time Use Survey and the System of National Accounts of Mexico, 2002

A point to start: Productive Activities OUTPUT HUMAN ACTIVITIES I. Productive Activities II. Personal Activities Paid Work Unpaid Work SNA Goods and services No SCN Unpaid Services ECONOMIC OUTPUT Personal benefits Learning Entertainment Personal care … General Production

The SNA boundary Unpaid household services, are not within SNA boundary It is necessary a monetary value to know the magnitude of the unpaid work output in the same way of other economic activities It is necessary to compile a satellite account to have the total household production and consumption Market production_____ 87.9% Other non market production___________ 6.6% Own account final production______ 5.5% Production _______________ 100.0%

Household Satellite Accounts will enlarge the boundaries Including a new concept of work: Paid and unpaid as a total Extending the household production boundary Extending the SNA production and GDP boundary Extending the SNA consumption boundary

6 SNA 1. MARKET PRODUCTION 2. OWN FINAL USE  OWN ACCOUNT GOODS PRODUCTION  OWN ACCUONT CAPITAL PRODUCTION  SERVICES OF OWNER OCCUPIED DEWLLINS  PAID DOMESTIC SERVICES 3. OTHER NON MARKET PRODUCTION General government production Non profit Institution production SATELLITE ACCOUNT OF UNPAID SERVICES 4. UNPAID HOUSEHOLD SERVICES  UNPAID DOMESTIC SERVICES ( food, cleaning, care textiles, shopping…, including travels)  UNPAID CARE GIVING SERVICES TO HOUSE HOLD MEMBERS (Children, elderly, sick people, including travels …)  UNPAID COMMUNITY SERVICES  to other households  To thecommunity)  UNPAID VOLUNTEER SERVICES (NLI) SCN Extended SNA production boundary= General Production + No SCN

PROPOSAL METHODOLOGY -The objective of household satellite accounts -General aproach -The boundary of the productive household activities The value of unpaid work The main results 7

Main Objectives of the HHSA 1.Provide estimation on production, gross domestic product, private consumption and compiles satellite accounts 2.Contribute to recognize unpaid work as part of a new concept of work, TOTAL WORK 3.Make visible women and men contributions to the economy and to the society ( reproduction and wellbeing) 4.Make visible the differences on the unpaid work distribution between women and men within the household 5.Have a set of statistics and indicators within the SNA framework to improve gender-sensitive measures and knowledge on the household economy to planning, policies makers and monitoring. 6.Contribute to construct a sensitive gender framework

How to make a monetary value to unpaid household services? Measuring the output according to the cost incurredMeasuring the output according to the cost incurred Considering that the only one input is unpaid work.Considering that the only one input is unpaid work. Only time of primary activities is taken into calculationsOnly time of primary activities is taken into calculations Using physical units of time “spend on” productive activities and a suitable “wage” of similar activities Quantity of hours x “ wage” per hour Quantity of hours x “ wage” per hour Q x P = OUTPUT

10 Data Sources National Time Use Survey 2002 National Time Use Survey 2002 Activities and quantity of time “spending on” National Income and Expenditures HH Survey 2002National Income and Expenditures HH Survey 2002 “market wage” per hour of activities alike household activities. System of National Accounts of Mexico, 2002 Conceptual and quantity framework Conceptual and quantity framework Goods and Services Accounts Institutional Sector Accounts

11 Quantity data source: Time Use Survey 2002 Some relevant characteristics  Population: 12 and up years  Survey instrument : Questionnaire 90Preselected activities 15 Main activities categories (close to ICATUS) 15 Main activities categories (close to ICATUS)  Collecting period  18 November – 13 December  as soon as National Incomes and Expenditures Household Survey finished  Data presentation: Weekly data  Data base available

12 MenWomen Source: INEGI. Encuesta Nacional sobre Uso del Tiempo, 2002 (National Time Use Survey, 2002) It is necessary to classified the productive actities Cooking Washing dishes Cleaning dwelling Carrying water, picking up wood or waste disposal Laundry, ironing or sewing clothes Tending domestic animals Health care Caring for children or household members Transporting a household member to work or school Purchasing groceries Paying and managment Dwelling repairs 5.8

13 “Third party criterion” is used to identify the unpaid household productive activities SNA PRODUCTIVE ACTIVITIES UNPAID PRODUCTIVE ACTIVITIESPersonal activities 01. Work SCN (ILO concept) 02. Work for household on primary production activities 03. Work for household on non primary production activities 04. Work for house hold in construction activities 05 Work for household providing servicies for income A. Unpaid work services 06. Unpaid domestic services for own final use 07. Unpaid care services to household members B. Unpaid community and volunteer services 08. Unpaid community services and help to other house holds 08ª Unpaid volunteer services work 09. Actividades de estudio. 10. Vida social y participación en actividades comunitarias. 11. Asistencia a acontecimientos culturales, de entretenimiento y deportivos y visitas culturales. 12. Aficiones, juegos y otros pasatiempos. 13. Práctica de deportes de interior y de exterior. 14. Utilización de medios de comunicación de masas. 15. Cuidado y mantenimiento personal. Source: Guide to producing statistics on Time Use: Measuring Paid and Unpaid Work Use

14 We can construct an indicator with physical data, hours a week TOTAL WORK and WOMEN and MEN CONTRIBUTIONS TOTAL WORKPAID WORK (SNA)UNPAID WORK TOTAL ACTIVITIES MEN √ WOMEN √

15 Annual monetary value added of unpaid household services Number of hours of each unpaid productive activity X 50 Weeks = Total annual hours ……………… Q “Wage” per hour*of each unpaid activity, one for woman and one for man, …………………… P Imputing Monetary Value Q. P = Gross value added by activity *In general, it is the income received

16 Alternatives to value the UPW and the impact on the contribution to the GDP Years Potential incomeReplacement cost Before taxesAfter taxesSpecialistsGeneral Source: Satistique Canada. Travail non rémunéré des ménages: mesure et évaluation Canada

Billions of pesos General Gross Domestic Product, includes unpaid household services

Women and men contributions to monetary value added of unpaid household services

Women and men contributions to Gross Domestic Product of unpaid household services. Quantity and monetary value Quantity of unpaid work time Value of unpaid work

GD1GD2GD3GD4GD5GD6GD7GD8GD9 Unpaid HH services s Source: MEGL, with INEGI data.. The contribution of unpaid hh services to GDP is equivalent to 23.7 % of total GDP GD1:Agriculture, cattle, forestry and fishing GD2:Mining Gd3:Manufactures GD4Construction GD5Electricity GD6Commerce, restaurants and hotels GD7Transport and communications GD8Financial and real estate GD9Community and professional services

Men and women contribution to the total value of unpaid household services Fuente: INEGI. Encuesta Nacional sobre Uso del Tiempo (ENUT), 2002

Unpaid care health services contribute with 11.3 % to the new Health GDP Heath is a mixture production: -Private, public, and hh sector. Temporary sick's care is one of the most relevant unpaid activity Women are the health careers and also the most users. Health care is something “normal” for women, with relevant social and labor costs

Satellite account of unpaid household services and the total economy

Production and Consumption Satellite Accounts

Thank you Your comments are welcome

26 Tiempo dedicado a los servicios no remunerados de los hogares y aportaciones en las horas dedicadas y en el valor de los servicios HOMBRESMUJERESTOTALHOMBRESMUJERESTOTAL 308, ,611, ,919, Servicios Domésticos no remunerados de los hogares 211, ,325, ,536, Preparación de alimentos35, , , Lavar los trastes10, , , Limpieza de la vivienda57, , , Limpieza de la ropa y calzado30, , , Reparaciones menores y mantenimiento22,113.65, , Realizar pagos o trámites para el hogar7,178.58, , Administración y compras48, , , Servicios no remunerados de cuidado de miembros del hogar 82, , , Cuidado de niños54, , , Cuidados de salud6, , , Cuidados a otros miembros del hogar21, , , Servicios a la comunidad y a otros hogares 14, , , Ayudar a otros hogares o familiares 9, , , Participar en alguna act social, o mejoras a la comunidad 4,706.63, , Fuente: MEGL Estimaciones propias con base en la ENUT y ENIGH2002 Aportaciones al tiempo dedicado % Icatus Horas dedicadas a la semana (miles) DenominaciónTOTALHOMBRESMUJERES

Puntos de partida El trabajo es un factor de producción cuyos resultados se traducen en bienes y servicios El trabajo no remunerado que se realiza en los hogares para sus propios miembros se incorpora en actividades productivas cuyo resultado se traduce en servicios Los hogares proporcionan servicios domésticos y de cuidado de personas a otros hogares Servicios comunitarios Trabajo voluntario