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12 June 2017 English only (A summary document carrying symbol ECE/CES/2017/6 is available in English, French and Russian on the CES 65th plenary session webpage)

Economic Commission for Europe Conference of European Statisticians Sixty-fifth plenary session Geneva, 19-21 June 2017 Item 7 (e) of the provisional agenda Unpaid household work

Guide on valuing unpaid household service work Prepared by the Task Force on Valuing Unpaid Household Service Work    

Summary The document presents the revised Guide on valuing unpaid household service work. This version addresses the comments received from the electronic consultation among members of the Conference of European Statisticians carried out in March-April 2017. The Guide was prepared by the UNECE Task Force on Valuing Unpaid Household Service Work consisting of Australia, Canada, Chile, Finland, Italy, Mexico, New Zealand, Republic of Moldova, Slovenia, Switzerland, United Kingdom (Chair), United States, Eurostat, ILO, and OECD, and UNECE. In view of the high support received in the consultation, the Guide is submitted to the 2017 plenary session of the Conference of European Statisticians for endorsement.

 





Acknowledgements The present Guide has been prepared by the UNECE Task Force on Valuing Unpaid Household Service Work, which consisted of the following members: Dominic Webber, Chair of the Task Force (United Kingdom Office for National Statistics), Guinevere Hunt (Australian Bureau of Statistics), Malika Hamdad (Statistics Canada ), Evelyn Larenas Fuentes (National Statistical Institute of Chile), Katri Soinne and Hannu Pääkkönen (Statistics Finland), Kristiina Aalto (University of Helsinki), Monica Montella (Istat, Italy), Raúl Figueroa Díaz (INEGI, Mexico), Vladimir Ganta (National Bureau of Statistics of the Republic of Moldova), Andrej Kralj (Statistical Office of the Republic of Slovenia), Jacqueline Schön-Bühlmann (Swiss Federal Statistical Office), Benjamin Bridgman (United States Bureau of Economic Analysis), Christopher Payne and Vasileios Antonopolous (United Kingdom Office for National Statistics), Andreas Dollt (Eurostat), Kieran Walsh (ILO), Peter van de Ven and Carlotta Balestra (OECD), Andres Vikat and Vania Etropolska (UNECE). The chapters of the Guide have been discussed and agreed by the entire Task Force. Some organizations took the primary responsibility of compiling certain chapters, as follows: chapters 1 and 5 by United Kingdom Office for National Statistics (ONS), chapters 2, 3 and 6 by Statistics Canada, and chapter 4 by ONS, Istat (Italy), Statistics Finland and University of Helsinki.

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Contents List of Tables ............................................................................................................................ 7  List of Figures ........................................................................................................................... 8  Acronyms / Abbreviations....................................................................................................... 9  Chapter 1  Introduction, Overview and Main Conclusions ............................................ 11  1.1  Why this Guide? ........................................................................................................ 11  1.2  Importance of unpaid household service work ......................................................... 12  1.3  Overview of the Guide .............................................................................................. 13  1.3.1  Chapter 2: Concepts and definitions .................................................................. 13  1.3.2  Chapter 3: Methodological approaches ............................................................. 14  1.3.3  Chapter 4: The structure of household satellite accounts .................................. 15  1.3.4  Chapter 5: Implementation and measurement challenges ................................. 15  1.3.5  Chapter 6: Reporting .......................................................................................... 16  1.3.6  Chapter 7: Country-specific case studies ........................................................... 16  1.3.7  Chapter 8: Current and future research work ..................................................... 17  1.4  Main conclusions....................................................................................................... 18  1.4.1  Summary of recommendations .......................................................................... 20  Annex 1.1: UNECE survey on national practices on valuing unpaid household service work..................................................................................................................................... 22  Chapter 2  Concepts and Definitions................................................................................. 23  2.1  Introduction ............................................................................................................... 23  2.2  SNA production boundary and general production boundary .................................. 23  2.3  Defining own-use production work of services ........................................................ 24  2.4  What activities should be included? .......................................................................... 27  2.5  Valuing own-use production work of services .......................................................... 28  2.5.1  Introduction ........................................................................................................ 28  2.5.2  The input valuation approach............................................................................. 28  2.5.3  The output valuation approach........................................................................... 29  Annex 2.1: Background to Resolution I of the 19th ICLS ................................................... 31  Chapter 3  Methodological Approaches............................................................................ 32  3.1  Introduction ............................................................................................................... 32  3.2  Data and coverage ..................................................................................................... 32  3.3  Classification of activities to be measured ................................................................ 33  3.4  Valuation techniques ─ the input and output valuation approaches ......................... 34  3.4.1  The input approach ............................................................................................ 35  3.4.2  The output approach .......................................................................................... 41  3.4.3  Comparison between the output and input approaches...................................... 44  Chapter 4  The Household Satellite Account.................................................................... 47  4.1  4.2 

Introduction to the household satellite account ......................................................... 47  Developing a household satellite account ................................................................. 47  3

4.2.1  A simplified satellite account for own-use production work of services........... 47  4.2.2  A Satellite Account for own-use production work of services with an Extended Production Boundary ........................................................................................................ 57  4.2.3  Sequence of extended household accounts ........................................................ 63  4.2.4  Impact on national account variables................................................................. 72  Annex 4.1: Allocation of COICOP codes to intermediate and final consumption, and household capital ................................................................................................................. 73  Annex 4.2: Allocation of intermediate consumption to own-use production work of services activities ................................................................................................................ 76  Annex 4.3: Allocation of household capital to own-use production work of services activities .............................................................................................................................. 78  Annex 4.4: Use table at purchasers' prices (excluding extension of the production boundary) ............................................................................................................................ 79  Annex 4.5: Use table at purchasers' prices (impact of extending the production boundary) ............................................................................................................................................. 85  Chapter 5  Implementation and Measurement Challenges............................................. 91  5.1  Introduction to the chapter ........................................................................................ 91  5.2  The measurement of inputs ....................................................................................... 91  5.2.1  Alternative sources for measuring labour input ................................................. 91  5.2.2  Methodological choices in designing a survey to measure time use ................. 92  5.2.3  Summary assessment of different approaches ................................................... 93  5.2.4  Classification of activities to be measured......................................................... 95  Annex 5.1: Comparison of existing and recommended international activity classifications for measuring time use (mapped to ICATUS) .................................................................... 97  Chapter 6  Reporting ........................................................................................................ 100  6.1  Indicators of own-use production work of services for policy setting .................... 100  6.1.1  General indicators ............................................................................................ 100  6.1.2  Specific indicators ............................................................................................ 105  6.2  Periodicity ............................................................................................................... 106  6.3  How should measures of own-use production work of services be broken down? 107  Chapter 7  Case Studies .................................................................................................... 108  7.1  Measuring and valuing unpaid household service work – Canada’s experience .... 108  7.1.1  Measuring own-use production work of services using a time-use survey ..... 108  7.1.2  Comparing valuations based on the opportunity cost and replacement costs approach ......................................................................................................................... 110  7.2  Measuring and valuing unpaid household service work – Australia’s experience . 112  7.2.1  Measuring own-use production work of services using the replacement hybrid approach ......................................................................................................................... 112  7.2.2  Results .............................................................................................................. 113  7.3  How does own-use production work of services affect measured income inequality? – United States .................................................................................................................. 114  7.3.1  Introduction ...................................................................................................... 114  7.3.2  Data .................................................................................................................. 114  4

7.3.3  Valuing own-use production work of services using the replacement generalist and specialist approach ................................................................................................... 115  7.3.4  Estimating time spent in own-use production work of services using a regression model ............................................................................................................. 115  7.3.5  Results .............................................................................................................. 116  7.3.6  Conclusion ....................................................................................................... 116  7.4  Implementation of the household satellite account of Mexico ............................... 117  7.4.1  Distribution of time spent on own-use production work of services by individual characteristics, and by each activity .............................................................. 117  7.4.2  Comparing valuations of own-use production work of services using the replacement generalist and hybrid approaches. .............................................................. 119  7.5  Republic of Moldova’s experience in estimating the value of unpaid household service work ...................................................................................................................... 121  7.5.1  Measuring own-use production work of services using a time use survey...... 121  7.5.2  Valuing own-use production work of services using a replacement specialist and generalist approach .................................................................................................. 122  7.5.3  Conclusions ...................................................................................................... 126  7.6  The relationship between household disposable income and unpaid household service work- Finland ........................................................................................................ 126  7.7  The valuing method of Switzerland: Empirical example with different assumptions on wages ............................................................................................................................ 127  7.7.1  Empirical example with different wages ......................................................... 130  7.7.2  Conclusions ...................................................................................................... 131  7.8  Using an output approach to measuring own-use production work of services – United Kingdom’s experience........................................................................................... 132  7.8.1  Introduction ...................................................................................................... 132  7.8.2  Measuring the gross value added of informal childcare .................................. 132  7.8.3  Measuring the gross value added of household nutrition services .................. 137  7.8.4  Conclusions ...................................................................................................... 139  7.9  Measuring consumption of fixed capital for own-use production work of services production in Italy, 2002 and 2008 ................................................................................... 140  7.10  Examples of continuous time-use surveys – United States ................................. 141  7.11  Example of using time-use surveys - a light diary / full diary – Finland ............ 142  7.11.1  Introduction ...................................................................................................... 142  7.11.2  Data .................................................................................................................. 142  7.11.3  Non-response ................................................................................................... 143  7.11.4  Classification of activities ................................................................................ 144  7.11.5  Results .............................................................................................................. 144  7.11.6  Conclusions ...................................................................................................... 146  7.12  An example of using a Labour Force Survey module to measure labour input to unpaid household service work – Switzerland .................................................................. 146  7.12.1  Introduction ...................................................................................................... 146  7.12.2  Implementation of unpaid household service work module into Labour Force Survey 147  7.12.3  Surveys............................................................................................................. 148  7.12.4  Key results from the Labour Force Survey - module 2013 ............................. 150  7.12.5  Conclusions ...................................................................................................... 155  5

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Connecting a household satellite account to a health satellite account - Mexico 156 

Chapter 8  Current and Future Research Areas............................................................ 159  8.1  Simultaneous activities ............................................................................................ 159  8.1.1  What are simultaneous activities? .................................................................... 159  8.1.2  Why is multitasking important? ....................................................................... 159  8.1.3  How are simultaneous activities treated in time-use surveys?......................... 160  8.1.4  Measuring time spent in simultaneous activities ............................................. 161  8.1.5  Valuing time spent in simultaneous activities ................................................. 163  8.1.6  Conclusion ....................................................................................................... 164  8.2  Volunteer work ........................................................................................................ 164  Glossary ................................................................................................................................ 166  References ............................................................................................................................. 168 

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List of Tables Table 3.1 Input-based method: condensed guidelines ............................................................. 35  Table 3.2 Components captured while using the output valuation and their relationship to gross value added and output ................................................................................................... 42  Table 3.3 Comparison of input and output approaches for Canada, 1992 ............................... 45  Table 4.1 Own-use production work of services activities, and their market counterparts ..... 49  Table 4.2 Simplified use table at purchasers' prices (excluding extension of the production boundary) ................................................................................................................................. 56  Table 4.3 Simplified use table at purchasers' prices (impact of extending the production boundary) ................................................................................................................................. 62  Table 4.4 Example of household sector accounts .................................................................... 64  Table 4.5 Household production account, version 1: SNA and non-SNA production estimated separately ................................................................................................................................. 65  Table 4.6 Household production account, version 2: SNA and non-SNA production combined for household meal services ..................................................................................................... 66  Table 4.7 Sequence of extended accounts ............................................................................... 67  Table 5.1 Assessment of different approaches to collection information on time use ............ 93  Table 5.2 ICATUS 2016 classification – top level .................................................................. 96  Table 6.1 Indicators for measuring physical volume of own-use production work of services ................................................................................................................................................ 100  Table 6.2 Indicators for measuring the value of own-use production work of services ........ 101  Table 6.3 Indicators for measuring labour devoted to own-use production work of services ................................................................................................................................................ 102  Table 6.4 Indicators for measuring household consumption of own-use production work of services ................................................................................................................................... 103  Table 6.5 Tax based indicators for measuring own-use production work of services ........... 104  Table 6.6 Specific indicators of own-use production work of services ................................. 105  Table 7.1 Value of own-use production work of services using different methods .............. 111  Table 7.2 Main results of unpaid household service work from Household Satellite Account of Mexico, 2003-2014............................................................................................................ 120  Table 7.3 Estimated monthly value of unpaid household service work ................................ 123  Table 7.4 Estimated monthly value of unpaid household service work using LFS wage estimate .................................................................................................................................. 125  Table 7.5 Equivalent wages (General Classification of Economic Activities, NOGA -02) .. 129  Table 7.6 Estimated United Kingdom formal childcare hours per child, 2005-2014 ............ 135  Table 7.7 Characteristics of the Full-scale Time Use Survey and the Light Diary Survey ... 143  Table 7.8 Time used for main activities by type of diary and gender (Minutes per day) ..... 145  Table 7.9 Domestic and family workload by group of activities, 2013 (Hours on average per week) ...................................................................................................................................... 150  Table 7.10 Time spent on voluntary work, 2013 (Hours on average per week).................... 153  Table 7.11 Distribution of unpaid household service work of permanent population aged 15 and over, 2013 (Millions of hours) ........................................................................................ 154  Table 8.1 Different ways of recording multitasking .............................................................. 161  Table 8.2 Example matrix time-use activity for primary and secondary own-use production of service work activities, Italy, 2008 and 2009 (Minutes per day) ........................................... 162  Table 8.3 Alternative valuations of own-use production work of services, ATUS, 2003 ..... 164 

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List of Figures Figure 2.1 Forms of work framework and relationship to SNA, 2008 .................................... 25  Figure 6.1 Average weekly hours and wage rate by household function, 2006 .................... 103  Figure 6.2 Total household consumption of own-use production of services work, 2008 (Purchasing power parities, United States = 100).................................................................. 104  Figure 7.1 Composition of the total workload of the economy in hours by sex, 2014* (Millions of hours) ................................................................................................................. 118  Figure 7.2 Care and domestic work of households by type of services in terms of GDP, 2014 (Percentage) ........................................................................................................................... 119  Figure 7.3 Monetary valuation of unpaid household service work, 2013 ............................. 130  Figure 7.4 Monetary valuation of unpaid household service work by different wages, 2013 ................................................................................................................................................ 131  Figure 7.5 ONS assumption regarding unsupervised time .................................................... 134  Figure 7.6 Ratio of informal to formal childcare (Hours) .................................................... 136  Figure 7.7 Ratio of informal childcare to GDP...................................................................... 137  Figure 7.8 Volume of calories eaten in and expenditure eaten out, 2005-2014 .................... 138  Figure 7.9 GVA of nutrition services of households ............................................................. 139  Figure 7.10 Breakdown of final consumption in the national accounts in intermediate consumption and durable goods, Italy, 2002 and 2008 ......................................................... 141  Figure 7.11 Unpaid household service work in Switzerland ................................................. 148  Figure 7.12 Time spent on domestic and family workload, by household type, 2013 (Hours on average per week) ............................................................................................................. 151  Figure 7.13 Time spent on professional activity on housework and caring for the family, 2013 ................................................................................................................................................ 151  Figure 7.14 Involvement in formal voluntary work, 2013..................................................... 152  Figure 7.15 Involvement in informal voluntary work, 2013 ................................................. 152  Figure 7.16 Volume of unpaid household service work of permanent resident population aged 15 and over, 2013 (Millions of hours) ................................................................................... 154  Figure 7.17 Example of the linkage between unpaid household service work and other satellite accounts .................................................................................................................... 158 

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Acronyms / Abbreviations ABS ASHE ATUS CAPI CATI CES CISSTAT CoE COICOP CPA CPS EEH Eurostat ES FSO GDP GNP GOS GSS GVA HETUS HHFCE ICATUS ICLS ILO IMF INEGI ISCO ISIC LFS MDL MNW MTUS NACE NOGA NPI NPISH OECD ONS OPCS PIM RC RC-G RC-S RTC SEPH SESS

Australian Bureau of Statistics Annual Survey of Hours and Earnings, United Kingdom American Time Use Survey Computer Assisted Personal Interview Computer Assisted Telephone Interview Conference of European Statisticians Interstate Statistical Committee of the Commonwealth of the Independent States Compensation of employees Classification of Individual Consumption According to Purpose Classification of Products by Activity Current Population Survey, United States Survey of Employee Earnings and Hours, Australia European Union Statistical Office Earnings Survey Federal Statistical Office, Switzerland Gross Domestic Product Gross National Product Gross Operating Surplus General Social Survey, Canada Gross Value Added Harmonized European Time Use Survey Household Final Consumption Expenditure International Classification of Activities for Time Use Statistics International Conference of Labour Statisticians International Labor Organization International Monetary Fund National Institute of Statistics and Geography, Mexico International Standard Classification of Occupations International Standard Industrial Classification of all economic activities Labour Force Survey Moldovan Leu, Currency Measuring National Well-Being programme, United Kingdom Multinational Time Use Survey Statistical classification of economic activities in the European Community General Classification of Economic Activities Non-Profit Institutions Non-Profit Institutions Serving Households Organisation for Economic Co operation and Development Office for National Statistics, United Kingdom Office of Population Censuses and Survey, United Kingdom Perpetual Inventory Method Replacement Cost approach Replacement Cost, Generalist approach Replacement Cost, Specialist approach Return To Capital Survey of Employment, Payroll and Hours, Canada Swiss Earnings Structure Survey 9

SLFS SNA SOEP SVW SWI TUS UNECE UNSD VAT ZEMIS

Swiss Labour force Survey System of National Accounts German Socio-Economic Panel Survey on Volunteer Work, Moldova Swiss Wage Index Time Use Survey United Nations Economic Commission for Europe United Nations Statistics Division Value Added Tax Central Migration Information, Switzerland

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Chap pter 1

Introd duction n, Overrview a and Maiin Concllusionss

1.1 Why this W s Guide?? Inn 2013, UNE ECE publisshed Guidelines for Harrmonizing Time-Use T S Surveys thatt identifieed unpaid work w as one of the areass where info formation fro om time diaary surveys is vitally iimportant foor informedd policymakking, and forr which other sources do d not proviide adequatte data. A laack of inform mation on unpaid u houssehold serviice work miight lead to misinfoormed policyy conclusions. For insttance, an inccrease in serrvices, such h as childcarre or long-terrm care provided by thhe governmeent or privatte sector, inncreases the quantity off goods and servvices produ uced in a couuntry. In facct, this wouuld simply reeflect that thhe productioon of the sam me service taakes place inn another innstitutional sector s instead of the hoousehold sector. 1.

Soome countrries have staarted to valu ue these actiivities throu ugh a Houseehold Satelllite Accounnt, which provides impoortant inform mation on the t economyy and societty. Howeveer, there is currently no genneral agreem ment on the methodolog m gical choicees in resolvin ng the measureement challlenges. The relevant intternational guidance - for instancee “Householld Producttion and Co onsumption - Proposal for f a Methoodology of Household H Satellite S Acccounts” (Eurostat, 2003) - dates d back for f more thaan a decadee. It is thereffore necessaary to revisiit the xperience annd provide guidelines on o these isssues. Furtheer need for updated u existingg national ex guidancce emerges from the 20013 “Resoluution concerrning statisttics of workk, employmeent and labour uunderutilizaation” of thee Internation nal Confereence of Labo our Statisticcians (ICLS S). The Resoluttion providees operationnal conceptss, definitionns and guideelines for distinct formss of work, w which have implication i ns on the claassification and a analysis of activities related too unpaid household service s worrk. 2.

To meet the need n for meethodologiccal guidancee on these isssues, the Bureau of thee Confereence of Euroopean Statissticians in 2014 2 establiished a Task Force forr developingg guidancce on valuinng unpaid hoousehold seervice work. The Task Force F workked through 20152016 too develop thhe present Guide. G 3.

The objectivve of the Guuide is to pro ovide guidaance to natio onal statisticcal offices on o selectinng and applyying methodds for valuinng own-usee productionn work of seervices, andd on compiliing Househoold Satellitee Accounts. The remaiining elemeent of unpaidd householdd service work – the productionn of servicess for other households, h or more sim mply voluntteering e a num mber of diffeerent, and complex methodologicaal challengees – is connsidered to entail consideered too greaat to be deaalt with in th his Guidance. Implemeentation of thhe Guide’s recomm mendations would w imprrove internaational compparability off statistics on o unpaid househoold service work. 4.

The Guide iss based on thhe experiennce of UNEC CE memberr countries and a other developped countriees participatting in the work w of the Conferencee of Europeaan Statisticiians1. A 5.

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The Connference of European Statissticians is com mposed of natiional statisticaal organizationns in the UNE ECE region (fo for UNECE member countriies, see http://ww ww.unece.org//oes/nutshell/m member_states_representatiives.html) and d includes in addition a Austrralia, Brazil, C Chile, Colombiia, Japan, Mexxico, Mongoliia, New Zealaand and Repubblic of Korea. The major internatioonal organizattions active inn statistics in th he UNECE reegion also partticipate in the work, such ass the

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summarry of currennt practices of UNECE countries inn valuing un npaid houseehold servicce work is preseented in Ann nex 1.1

1.2 Im mportance of u unpaid h househo old service work Pllacing moneetary valuess on activitiies carried out o in the hoousehold is not straighttforward since thhe work is unpaid u and often o producces intangibble services. Related measurement m t challengges include the questioon of multitaasking as, foor example,, it is possibble to preparre a meal, w watch over a small childd and help an a older chilld with theiir homeworkk all at the same s time. Fuurthermore,, there is a qquestion aboout the bordderline with household service worrk and leisure – some people would regard r gardeening as a chore c while others see it i as leisure.. 6.

C Conventionaal economic statistics, such s as natioonal accoun nts and emp ployment meeasures, are larggely designeed to measurre the mark ket economyy and most countries c exxclude unpaaid househoold service work. Econnomists havee argued forr many yearrs that ignorring these services introducces biases inn various arreas of econ nomic analyysis.2 Pigou (1920), for instance, noted, n “If a maan marries his h housekeeeper or his cook, the national diviidend is dim minished”. Similarly, Mitchelll et al. (1921), Kuznetss (1944), andd Clark (1958) pointedd out by not taking me in kind prrovided by productive household activities siignificantly into acccount incom underesstimates nattional incom me. The servvices that reesult from ow wn-use production worrk of servicess are unarguuably a sourrce of utilityy to househoolds and contribute to their t econom mic well-beeing. Nordhaaus and Tobbin (1972) contended c thhat unpaid household h s service workk contribuutes to econnomic welfaare, which conventiona c al gross natio onal producct (GNP) dooes not properlyy measure. 7.

The measureement of unppaid househhold servicee work has particular p reelevance in the field off feminism economics. e Weinrobe (1974) ( notedd that measuured growth h rates are biased b w movve into the laabour markeet. This is because b onlyy the ensuinng upwardds as more women changess in market production are taken in nto accountt with no alllowance forr the resultinng decline in unpaid household h seervice workk. Further, Walker W and Gauger (19973) argued that mic contribu ution of wom men to prodduction conventtional statistics grosslyy understate the econom becausee women peerform abouut two thirdss of all houssework. In the t 1980s, feminist f ecoonomists criticiseed the shortccomings off traditional labour and production statistics. These T statisttics, they arggued, do not consider unpaid u domeestic work and a thereforre under-esttimate wom men’s contribuution to the economy, since s womeen perform most m of hou usework (Gooldschmidt-Clermoont, 1982; Chadeau, 19885). 8.

M More recentlly, the Stigliitz-Sen-Fitooussi Reporrt (2009) maade it clear that t traditioonal macro-eeconomic in ndicators, suuch as the gross g domesstic product (GDP), do not providee a robust m measure of the t econom my. At the innternational level, it hass been wideely recognissed that a proper recognitioon and valuaation of unp paid househhold service work would allow a beetter ment of the economic e annd social im mpact of pollicy optionss. Measuringg unpaid hoousehold assessm 9.

statisticall office of the European Coommission (Euurostat), the Organization O foor Economic Cooperation C a and Developm ment (OECD)), the Interstate Statistical Committee C of the t Commonw wealth of the Independent I S States (CIS-STA AT), the Internnational Monetary Fund (IM MF) and the W World Bank.  2 Ezra Seeaman (1846) spoke of addiing various serrvices, including “ordinary domestic laboour” to estimaated income, aand this treatm ment of all serrvices raised inncome by aboout one-third. In I 1852, howeever, he excluuded from the “rankk of productivee industry, housekeeping, thhe labour of ddomestic servaants,” and otheer services, onn the basis thatt they are not material prodducts.

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service work helpss to uncoverr hidden asppects of the economy raaising vital policy p issuees that have lonng remainedd invisible. For instancce, an increaase in indusstrialization can lead to a shift in the consumption n of market--based serviices where they t were previously p p produced in the This is likely to result in i under-esttimation of m material weell-being before home. T industriialization annd an overesstimation off economic growth durring the trannsition periood. Indeed, current meeasures of well-being w foocusing onlyy on markett activities are a not fullyy n cases wherre there is reliablee when theree is a signifiicant amounnt of unpaidd work or in switchinng betweenn paid and unnpaid workk (Weinrobee, 1974). Finnally, severaal own-use producttion work off services acctivities, su uch as formaal or inform mal education n, health caare and bearingg children reepresent hum man capital formation and a are imp portant to en nsure the sustainaability of weell-being annd economicc growth (F Fraumeni, 20005).

1.3 Overview O w of the e Guide The Guide diiscusses thee concept off unpaid houusehold servvice work, focuses f on identifyying methoddological annd implemenntation issuues with meaasuring own n-use produuction work off services, and a the challenges assoociated with both the measurement m t of labour input i and the subsequentt valuation. The Guide provides reecommendaations aimedd at producing c w nationaal accountingg concepts and with a comparrable acrosss estimatees that are consistent econom mies. The Guuide limits the t productiion boundarry to own-u use productiion work off servicess recognisinng that the measuremen m nt and valuaation of the provision of o services for f other househoolds – essen ntially volunnteering –reequire separrate guidancce. Finally, the t Guide provides p examples of how own-use o prooduction wo ork of servicces has been n measured in selected fore concludding with soome examplles of more detailed anaalysis, countryy-specific coontexts, befo and sugggestions for further ressearch areass. 10.

1.33.1 Chaptter 2: Con ncepts an nd definiitions C Chapter 2 foccuses on thee concepts and a definitioons related to unpaid household h seervice work. D Discussions of unpaid household h service workk begin in thhe context of o the System m of Nationaal Accounts (SNA) prooduction bouundary, outllining how unpaid u household service work sits outside of o this. 11.

N Next followss a formal definition off unpaid houusehold serv vice work, underpinned u d by the framew work establisshed at the 19 1 th Internattional Confference of Labour L Statisticians. Unnpaid househoold service work consissts of two elements e – own-use o prooduction woork of servicces and volunteeer work. Ow wn-use prodduction worrk of servicees is activityy to providee services foor own final use, whereas volunteer work w is non--compulsoryy activity too provide seervices for others. o o services. The As iteraated earlier, this guidannce is focusiing on own--use producction work of Guide rrecommends that the measurement m t and valuattion of volu unteer servicces be consiidered as an arrea for futurre research work. w 12.

C Chapter 2 neext discussess how the th hird party crriterion larg gely guides the definitioon of unpaid household service s worrk. Accordin ng to Hawryylyshyn (19977), unpaidd householdd service nd outside thhe work is regarded as ‘those ecoonomic servvices producced in the household an market,, but which could be prroduced by a third person hired onn the markett without chhanging their utiility to the members m off the househ hold’. Follow wing this is a definitionn of the fulll set of activitiees that shou uld be includded when measuring m ow wn-use prodduction worrk of servicees. 13.

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C Chapter 2 concludes by outlining thhe main appproaches to valuing ow wn-use produuction work off services –tthe input annd output appproaches. While W the deetailed meth hodology iss left to Chapterr 3, this secttion of guidde describess the preferrred conceptuual framewoork. This is to value ow wn-use prodduction worrk of services using thee input (sum m of costs) approach, a ussing the gross geeneralist waages. 14.

1.33.2 Chaptter 3: Me ethodolog gical app proaches C Chapter 3 proovides detaiiled accounnts of some of o the core methodolog gies regarding the methoddological app proaches too measuring own-use prroduction work w of servvices. It begiins with a discusssion on thee collection of data – prrimarily tim me-use data to feed intoo the input approacch. Guidancce has alreaddy been draafted on timee-use data by b United Nations N Statiistics 3 4 Divisionn (UNSD), United Naational Econnomic Comm mission forr Europe (U UNECE) andd Eurostaat. This Guidde referencees these doccuments witthout repetition. 15.

N Next, the chaapter providdes details of o the variouus options available a under the inpuut approacch to valuing own-use production p work of serrvices. The main m sourcee of informaation to value thhe time spen nt on own-uuse productiion work off services arre wage ratees. Howeverr, countriees need to decide d on thhe appropriaate wage rate approach.. There are two t main chhoices here: thhe opportuniity cost approach- valuuing time at the wage raate of the peerson perforrming the worrk – or the replacementt cost – valuuing the worrk at the waage rates of professionaals in the marrket. Withinn the replaceement cost approach, a fuurther optioons are availlable. All work w can be valueed using geeneralist wagges (e.g., ho ousekeeper)), or speciallist wages foor each indiividual activityy (e.g., chef wages for preparing p m meals, child-minder wag ges for lookking after chhildren etc.). A relatively new n approacch, currentlly trialled inn countries including i M Mexico, Cannada and u Australia, is the hyybrid approaach. This ussually involvves valuing household activities using a then moore complexx work, suchh as caring for f children n and adults using generalist wages, and the speccialist wagee. The Guidee recognises the relativve merits off each indiviidual approaach and recomm mends valuinng the time spent on ow wn-use prodduction worrk of servicees using genneralist wages before b tax (ggross). 16.

Foollowing thhe estimationn of compen nsation for labour inpuut, further caalculations are a requiredd to estimatte the sum of o all costs. These incluude the returrn to capitall, which reccognises the prodductive capaacity of, forr instance, household h a appliances inn deliveringg own-use producttion work off services. Further F adju ustments aree required for fo the treatm ment of taxees and benefitss, and interm mediation coonsumption n. 17.

The chapter concludes c w a descrription of the output app with proach. Thiis approach differs significcantly from the input appproach; thee starting pooint is meassuring the voolume of seervices produceed rather thaan the time spent proviiding them. While this Guide prefeers the outpput approacch conceptuually, it conssiders that thhe data requuirements are a too difficcult to overccome to be a reccommendedd approach. Nonethelesss, the Guidee provides an a example for own-usse producttion work off childcare services, annd describess an approacch to measuuring the num mber of hours thhat care providers alloccated to chilldcare. The estimated volume v of services is thhen valued using u the neearest markket equivalennt prices. Using U the exaample of chhildcare, thee chapter discusses the t relative merits m of diifferent pricces – in this case, live-in nannies 18.

3 4

Guide tto producing statistics s on tim me use, UNSD D, 2005. Guideliines for harmoonizing time-uuse surveys, UNECE, U 2013..

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comparred with child-minders.. The chapteer concludes by compaaring resultss from the innput and output aapproaches..

1.33.3 Chaptter 4: Th he structu ure of hou usehold ssatellite accountss C Chapter 4 ouutlines how countries shhould constrruct a houseehold satellite account – an accountting framew work for measuring ownn-use produuction work k of servicess that is consistent with naational accou unts, allowiing robust comparisons c s with tradittional markeet-based acttivity. 19.

The chapter first f definess the SNA production p b boundary off which the own-use producttion work off services siits outside. The Guide then proposses a simpliified satellitte accountt, maintaininng the estabblished SNA A production boundaryy. In other words, w it incorpoorates the ph hysical unitss of own-usse productioon work of services s – measured m in hours – withoutt valuation, and therefoore does nott affect headdline macroeconomic variables v succh as GDP. 20.

C Chapter 4 theen proposess a second taable that exxtends this production p boundary b byy includinng the valuee of own-use productioon work of services. s Thhis requires a number of adjustm ments to the existing SN NA framewoork. First, thhe table recoonsiders ho ouseholds’ final f consum mption expennditure as innputs to the productionn of own-usee production n work of services. For insttance, houseehold expennditure on flour fl is reclaassified as inntermediatee consumptiion of the prodduction of meals m for ow wn-consumpption. Furthhermore, houusehold apppliances succh as vacuum m cleaners arre reclassifiied as produuctive capitaal in the cleeaning of ho omes, requirring an estimatiion of depreeciation andd return on investment. i 21.

Fuurther adjusstments are required foor the receippt and paym ment of taxess and benefiits directlyy related to the t productiion own-usee productionn work of services. In some s counttries, househoolds receivee direct beneefits for loo oking after children, c or disabled peeople. This framew work treats th his activity as a form of o subsidy, and a accountts for it wheen calculatinng the output aand gross vaalue added (GVA) of th he own-usee productionn work of caaring services. 22.

O Overall, thiss proposed supply s and use u table prrovides a fraamework foor estimatingg the GVA of own-use production p w work of serv vices in a manner m that is i comparab ble with tradditional mic activity. This allows a number of useful annd informattive analysees. First, thee value econom of activvity produceed within thee home com mpared direcctly to that taking t placee in the marrket. Further, it providess a measuree of “extendded-GDP” – that is, connventional GDP G plus thhe value o services. of own--use producction work of 23.

Foollowing thhis, the chappter describees the proceess for produucing an ex xtended sequuence of accountts for the hoousehold secctor. By doiing so, it reccognises thee production n and consuumption of own--use producction work of o services as a a form off income in--kind, therebby proposinng an alternattive measuree of househhold disposaable income. This allow ws a differennt take on trradition econom mic analysess of inequaliities and poverty - furthher exploredd in Chapteer 6. 24.

1.33.4 Chaptter 5: Im mplementtation and d measurrement cchallenge es C Chapter 5 exxplores manyy of the chaallenges surrrounding im mplementatiion and measureement that countries c m face wheen measurinng own-use productionn work of seervices. may The firsst section off the chapterr presents a range of allternative so olutions to the t measureement of labour iinputs. In do oing so, it examines e thee various chhoices in co ollecting infformation onn timeuse. Forr instance, should s data be recorded d via a full time-diary, t or less resoource-intenssive 25.

15

stylizedd questions?? The chapteer recommeends a full diary d approaach when poossible, but does suggestt that a lightt time-diaryy is a promissing alternattive if resouurces are co onstrained. This chapter then definees the full cllassificationn of activitiees for counttries implem menting a light ddiary. The categories c reecommendeed within Reesolution I of o the 19th ICLS I are regarded too broaad. Instead, the Guide lists l a moree detailed seet of activities based thee International Classifiication of Activities A forr Time Use Statistics (IICATUS 20016) developed by the UN U Statisticcs Division.. This classiification is the t result off many yearrs of consulttations withh Membeer States thaat provided inputs/comm i ments on naational and regional r exp periences.5 ICATU US 2016 wass endorsed by b the UN Statistical S C Commission n (UNSC) in n March 20117 for use as an a internatioonal statisticcal classificcation. The Guide G recom mmends thaat countries use these acctivities in designing d fuuture time-uuse surveys.. 26.

1.33.5 Chaptter 6: Reporting C Chapter 6 deescribes a raange of posssible indicattors concernning own-usse productioon work of serviices that aree useful for policy p settinng. It suggeests a series of general indicators i ranging from thhe number of hours devvoted to own n-use produuction work of services, to comparrisons of GDP peer capita witth and without own-use production of servicees included. Finally, thee chapter concludes by b providinng specific recommend r dations regarrding the peeriodicity annd breakdoowns of meaasures. Thiss Guide recoommends thhat countriees should aim m to producce measurees of own-uuse productiion work off services at least everyy 5 years. Fuurther, to ennsure comparrability, cou untries are enncouraged to t harmonisse referencee periods, annd publish on o years ending in 5 and 0. In terms off breakdown ns, the Guidde recognisees the imporrtance of thee gender o services. It I recommennds that, at a minimum m, dimensiion in own--use producttion work of measurees of own-uuse productiion work off services arre broken do own by sex.. In additionn, measurees should bee disaggreggated by agee and househhold compo osition. 27.

1.33.6 Chaptter 7: Cou untry‐sp pecific casse studie es C Chapter 7 preesents a rannge of counttry case studdies providiing examplees of issues raised within tthe Guide. The T examplles from Can nada (sectioon 7.1), Ausstralia (sectiion 7.2), Mexico (sectionn 7.4), Repuublic of Molldova (sectiion 7.5) andd United Kin ngdom (section 7.8) deescribe national approachees to measurring and valluing own-uuse productiion work off services. The T rest of the ccase studies focus on sppecific issuees, in particuular United States (secttion 7.3) deescribes the effeect on incom me inequalitty, Finland (section ( 7.6) focuses onn the relatioon with dispposable income, Switzerlannd (section 77.7) discussses differentt assumptioons of wagess and Italy (section ( m coonsumption n of fixed caapital for ow wn-use prod duction workk of 7.9) anaalyses the measuring servicess. The exam mples of the United Stattes (section 7.10), Finland (sectionn 7.11), andd Switzerrland (sectioon 7.12) discuss surveyy issues sum mmarised beelow. The laast example of Mexicoo (section 7.13) providees experiencce with connnections bettween satelllite accountts. 28.

U United Statess, Finland and a Switzerlland provide a number of country--specific examples regardinng the colleection of tim me-use inforrmation. The first exam mple providees an accounnt from the United States who w have im mplementedd a continuouus, annual, time-use suurvey since 2003, by com mbining the annual a Ameerican Timee Use Surveyy (ATUS) and a the Mulltinational Time T 29.

5

UNSD. ICATUS 20116: https://unsstats.un.org/unnsd/statcom/488th-session/doocuments/BG--3h-ICATUS--2016-13Februaryy-2017-E.pdf

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Use Surrvey (MTUS). While thhis approachh requires overcoming o g a number of o challengees, the fact thaat it providess annual esttimates allow ws frequentt estimates of o own-use productionn work of serviices. Foollowing thhe United Sttates case sttudy is an acccount of a light-diary approach, developped and testted by Finlaand. Attempting to overrcome the laack of timelliness of fulll time diaries, the Finnishh light diaryy classified 35 3 main acttivities – considerably less l than thee 146 more, responndents weree asked to reecord only one o categories in a full-scale surveey. Furtherm c b minimised. Nonethelless, the ligh be ht dairy was main acctivity so that the data collection designeed so that is was compaarable with previous p fuull-diaries. Overall, O testing a light-ddiary provideed some useeful and infoormative ressults. For innstance, desp pite low ressponse ratess (17%), the lighht-diary provvided estimates that weere close to those obtainned from thhe full-diaryy. Howeveer, respondeents reporteed difficultyy in recordinng just one main m activitty, and thereefore, it is recom mmended thhat future ligght-diaries allow a for thhe recordingg of at least one addition parallell activity. 30.

Sw witzerland outlines o theeir experiencce of using a module on o the Labouur Force Suurvey (LFS) too measure labour l inputt. Using thiss module, approximate a ely two thirdds of the LF FS sample was surveyyed regardinng time spen nt on housew work, caring, domesticc tasks and he case studdy identifiedd numerous advantagess with this LFS L modulaar voluntaary work. Th approacch. For instaance, it was relatively low l budget, meaning th hat Swiss deecision-makkers have haad access to good qualitty information on dom mestic and faamily worklload since 1997. Furtherm use the moddule is attacched to an em mployment survey, it enables e more, becau comparrisons of tim me spent in paid p work and a own-usee productionn work of seervices for the t same inndividuals. However, H thhe survey was w limited to t only one person per household. This means tthat while thhe results prrovide somee insight intto househollds managem ment (main responssibility for housework h a childcarre), it did noot inform onn the volum and me of own-uuse producttion work off services coompleted by y all the meembers of a household together. Furtherm more, theree were issues of recall - individualss may not have h rememb bered all off their unpaid activities on n the referennce day. Finnally, the reesults reliedd on responddents correcctly wn-use prod duction worrk of servicees- some might m describbe distinguuishing cateegories of ow playingg with childrren as childccare, and otthers as leisure. 31.

The examplee of Mexico outlines ho ow differentt satellite acccounts can overlap in the t phenom mena that theey are attem mpting to measure. For instance, th he provisionn of help or care to other hoouseholds may m be captuured in bothh householdd satellite an nd health saatellite accouunts. Recognnising these linkages heelps avoid duplication d a achievee results thatt are consisttent and across satellite s accounts. It cann also prom mote synergiies and know wledge sharring betweeen teams workingg on differeent accountss. 32.

1.33.7 Chaptter 8: Current and d future research h work C Chapter 8 concludes thee Guide by reporting r arreas of existting and ideas for futuree researchh regarding the measurrement of unnpaid houseehold servicce work. Th he chapter beegins with a llong-standinng issue – thhe treatmen nt of simultaaneous activvities. Simulltaneous acttivities take plaace in paralllel with eachh other, succh as lookinng after childdren while cooking c am meal. There are a numerouus solutions to recordinng the time spent s in sim multaneous activities. a For instancee, one couldd record seccondary actiivities in a separate s table, or countt both the prrimary and secondary in tootal. 33.

Even if an aggreement is reached onn measuring the time sp pent on prim mary and seccondary activitiees, issues arrise when atttempting to o value this time. For in nstance, valluing time using u a 34.

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specialiist wage is problematic p c for someonne who spennds an hourr both cookiing and lookking after a cchild. This adds a weightt to valuing the time sppent on own n-use producction work of o servicess using the generalist g w wage approaach, but stilll issues willl arise if onee of the simultanneous activvities is not household h work. w All off these issuees taken toggether implyy the directioon of furtherr research annd thought towards to the treatmennt of simulttaneous actiivities. C Chapter 8 theen discussess some of th he issues reggarding the measuremeent of volunnteer work. A As stated earrlier, the Guuide focusess primarily on methodoologies for the t measureement and valuuation of ow wn-use prodduction worrk of servicees. The meaasurement of o volunteerr work entails a whole set of measureement and valuation v challenges maany of whicch are similaar to those adddressed in this guide. While somee guidance relevant to volunteer work w exists (see ( ILO, 20011), the Taask Force coonsiders thiss as an area for follow up activities. 35.

N Next, the chaapter focusees on researcch carried oout in other countries th hat provide more in-depthh analysis th han this Guuide recomm mends as a minimum. m F First is a sum mmary of annalysis carried out in Finlaand examiniing the relattionship bettween houseehold dispoosable incom me and t sugggests the ownn-use produuction work of services.. The Guidee states that economic theory poorer ppeople shou uld consumee more unpaaid househoold service work w due too their reducced ability tto contract these t servicces in the maarket. Howeever, testingg this hypotthesis provees the opposite, at least inn this Finnissh example.. The authorrs concludee that incom me does not explain e o services taking placee. A more im mportant the amoount of ownn-use producction work of explanaatory variable is the avaailability off good alternnatives for outsourcing o g own-use producttion work off services. 36.

The chapter explores e furrther the rellationship between own n-use produ uction work of servicess and houseehold incom me. It presen nts a case stuudy from thhe United Sttates using measurees of own-uuse productiion work off services to estimate inncome in-kinnd, and thenn derive several measures of o inequalityy. Their resuults are enlightening. First, F all of thhe inequalitty t extendeed income iss more equaally distribuuted than mooney incom me. They measurees suggest that concludde that virtu ually all of thhe differencce in measuured inequallity between n the two measures is due too the additioon of a largge constant - the averagge value of own-use o pro oduction woork of servicess - to moneyy income. 37.

1.4 Main con M nclusion ns The Guide shhows that it is possible to derive esstimates of the value of own-use producttion work off services, and a construcct a satellitee account to o show the impact on GDP, G consum mption, and household h ddisposable income. i 38.

Inn valuing ow wn-use prodduction worrk of servicees, statisticaal agencies have h a rangge of options in terms off both measuuring the innputs and vaaluation. In particular, countries c faace a choice oof: 39.

  

a too measuringg the physicaal units of own-use o prooduction The inputt or output approach work of services. s How bestt to collect information i n on the inpuuts to own-u use producttion work of services. w rates too use for valluing own-uuse productiion work off services iff using Which wage the input approach? Replacement or opporttunity cost?? Generalistt or specialisst wages? 18



How should productts be reclasssified as inteermediate consumption c n or household capital inn the process of perform ming own-uuse productio on work of services?

Foor estimatinng the physiical units off own-use production work w of servvices, the Guuide recomm mends the innput over thhe output appproach. Thee output appproach has some s attracttive featuress, such as measuring m diirectly the volume v of seervices prod duced, and is i more connsistent with traaditional nattional accouunting exerccises. Howeever, the datta burden reequired is significcant, and neaarly almost difficult to achieve in practice. Reelatively moore straightfforward is the coollection off time-use daata, and theereby, the reecording of labour inpuut into own-use producttion work off services. This T approaach allows a more refin ned level of analysis, annd this Guide rrecommends disaggregating estimaates of ownn-use producction work of o services by sex, age, andd householdd compositioon. In termss of age lim mits, the Guiide states that countriess should measuree and reportt for those aged a 15 yeaars as a miniimum, but recognises r t national that prioritiees may requuire measuriing the work k of childreen aged younger than 15 years. 40.

W While the collection of time-use t daata is more achievable a t than measurring the direect output oof own-use production work of serrvices, it is still not a trrivial task. Full F time-usse surveyss are resourcce intensivee, requiring both considderable resppondent andd data codingg burdenss. The Guidde outlines a number off alternative solutions too the full tim me diary suurveys. Light diiaries, for example, whhich require a less detaiil of recordeed activitiess, are a prom mising alternattive that cou untries couldd implemen nt on a moree frequent basis b to supp plement lesss-timely full diarry approachhes. Whatevver method countries c deecide to collect time-usse data, the Guide recomm mends harmonisation off reference periods p acrooss countriees by colleccting inform mation on timee-use in everry year endiing 5 and 0. 41.

Foollowing thhe collectionn of labour input i into own-use production worrk of servicces, countriees face a rannge of optioons in termss of valuatioon. First, thee Guide reco ommends thhe replacem ment wage over the oppportunity co ost. Internattionally, thee latter apprroach is disccounted as it cann lead to cou unterintuitivve results, for f instance, that an houur spent loooking after a child is more valuable when w carriedd out by a laawyer comppared to a seecretary. Arguably, the skills o s have little bearing in the t care of children, c orr other form ms of requiredd for these occupations househoold work. 42.

The next queestion regardds the choicce of wage rates r - generralist versuss specialist wages. As outliined in Chaapter 3, whille there are attractive fe features to both b approacches, the Guuide recomm mends the geeneralist waage approacch. This appproach best accounts a for the fact thhat the producttivity of hou usehold mem mbers are unlikely u to match m those of specialisst workers, and thereforre the qualitty of servicee per hour of o work is liikely to be less. l Furtherrmore, it is more useful ffor overcom ming some of o the issues raised by ssimultaneou us activities.. The generaalist wage appproach reqquires only one o wage raate to value an hour of childcare co ombined wiith cleaningg, rather thaan some com mbination of o two rates under the specialist s appproach. 43.

O Once arrivingg at a measuure for the value v of labbour input countries cann then comppile a househoold satellitee account. The Guide reecommendss undertakin ng this in tw wo stages. Thhe first stage is to add to th he traditionaal supply annd use fram mework of thhe national accounts a t comparison of informaation from time-use surrveys and brreakdowns of activitiess, enabling the own-use production work of services s with h their counnterparts in the market. This first stage s p b boundary deescribed in tthe SNA, an nd merely records r the time t does noot alter the production investedd in the ownn-use produuction work of services. 44.

The second stage s extendds the produ uction boundary by including the value v of ow wn-use producttion work off services. This T involvees the realloocation of products from m final consum mption expennditure to inntermediate consumptioon and houssehold capittal using thee tables 45.

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in the annnex of Chaapter 4 as a guide. Furtthermore, coountries neeed to accoun nt for the depreciation of houusehold cappital, following a straighht-line deprreciation perpetual inveentory o the capitaal using the interest ratte on debt seecurities. Fiinally, model, and estimatte a return on t existing taxes and benefits b relaated to the direct d provission of an adjustment is reequired for the s own-use production work of services. The Guide deescribes thee derivation of a full sequence of accounts a forr the househhold sector. U Using inforrmation alreeady existing g in nationaal accounts, this involvves a series of o adjustm ments, recog gnising the consumption c n of own-usse productioon work of services s as an income in-kind, to arrive at ann adjusted value v for houusehold disp posable income. Whilee not a a nu umber of isssues explicittly recommeended, counntries can usse this inforrmation to analyse relatingg to income inequalitiess and povertty. 46.

Fiinally, the Guide G recom mmends a number n of arreas for furtther research h work. Firstly, there is still no satiisfactory meethod for deealing with the issue off simultaneoous activitiees – when peeople do moore than onee activity att the same tiime. Seconddly, volunteeering, that is, the provisioon of servicces for otherr householdds entails a number n of measuremen m nt challengees out of the scoppe of this Guide. G A furtther guidance documennt could add dress the meeasurement and valuatioon of voluntteering servvices. 47.

1.44.1 Summ mary of rrecomme endationss This section provides a brief b summ mary of all thhe Guide’s recommend r dations grouuped into fouur themes: General G meaasurement, household h s satellite account, reportting, and fuurther researchh recommenndations. 48.

Generall measurem ment recomm mendations 1. M Measuring own-use o prroduction work w of servvices – Thee Guide reco ommends measuring the t volume of own-usee productionn work of seervices usin ng the inputt approach. 2. V Valuing own n-use produ uction work of servicees – The Gu uide recomm mends valuiing the labour com mponent of own-use o prooduction woork or servicces using thhe replacem ment generalist approach selecting s ann appropriatee gross wag ge (i.e. befo ore-tax) ratte. Househhold satellitee account reecommendaations 3. C Constructin ng a simpliffied househ hold satellite account – The Guidee recommennds constructing a simplifiied househo old satellite account as a first stagee. This adds to the s and use framew work by justt adding info ormation onn the labourr traditional supply componentt of own-usee productionn work of seervices. 4. R Reallocatingg final conssumption exxpendituree to intermeediate conssumption an nd household capital – Using U the tabble in Anneex 4.1, the Guide G recom mmends o final consumption exxpenditure towards t inteermediate reallocatingg elements of consumptio on and houssehold capittal. This refllects the bun ndle of goo ods and servvices required to enable the production of own-usee production n work of seervices. 5. E Estimating capital c servvices – Thiss Guide recoommends measuring m thhe consumption of fixed capitaal using the perpetual in nventory method, m and estimating the t return on o capital usin ng a selectedd interest raate – the Guide suggest the interestt rate for governmen nt bonds.

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6. Reconciling for taxes and subsidies – The Guide recommends estimating the value of taxes and subsidies involved in the direct provision of own-use production work of services. 7. Estimating gross value added and value of output – The Guide recommends estimating the value of gross value added and output as:















8. Constructing a household satellite account with extended production boundary – The Guide recommends using all the variables estimated above to construct a household satellite account with extended production boundary. Reporting own-use production work of services 9. Age bands – The Guide recommends that measures of own-use production work of services should at least cover the population aged 15 and over. However, countries can measure and report at lower age thresholds depending on national priorities, as long as the age group “15 and over” is clearly identifiable to enable international comparison. 10. Periodicity – The Guide recommends that countries aim to measure and report ownuse production work of services every 5 years, and to ensure international consistency, in years ending in 0 and 5. 11. Breakdown – The Guide recommends that countries report estimates of own-use production work of services by sex, age, and household composition. Further research 12. Simultaneous activities – The Guide recommends applying more research to the issue of simultaneous activities to ensure consistent treatment. 13. Volunteering – The Guide recommends producing a separate guidance document for the measurement of volunteering activities.

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Anne ex 1.1: U UNECE su urvey on n nation nal pracctices on n valuin ng unpa aid houssehold service w work Inn April 2015 5, based on a questionnnaire designned by the Task T Force on o valuing unpaid u househoold service work, UNE ECE conduccted a surveyy on nationaal practices among the CES memberr countries. Responses were receivved from thhe following g 33 countriies: Armenia, Australia, Austria, Belarus, Brrazil, Canadda, Colombiia, Croatia, Czechia, Fiinland, Geoorgia, M , New Zealaand, Norwaay, Hungarry, Israel, Jaapan, Latviaa, Lithuania, Mexico, Montenegro Portugaal, Republicc of Moldovva, Romaniaa, Russian Federation, F S Serbia, Souuth Africa, S Spain, Swedenn, Switzerlaand, The former Yugosllav Republiic of Maced donia, Turkeey, United Kingdoom, and Uniited States. 49.

The survey provided p a comprehens c ive overview of countrries’ activitiies and planns in measuriing unpaid household h s service workk and was considered c a useful step p in identifyying good prractices and d in developing recomm mendations. The key finndings are the t followinng : 50.



17 countrries compilee estimates of the valuee of unpaid household service worrk: Armenia,, Australia, Canada, Co olombia, Finnland, Hunggary, Japan, Mexico, N New Zealand, Norway, Russian R Fedeeration, Spaain, Swedenn, Switzerlan nd, the form mer o Macedon nia, United Kingdom, K a United States. and S Yugoslavv Republic of



The follo owing 11 coountries decllared measuuring the vaalue of unpaaid household work on regulaar basics: Auustralia, Coolombia, Finnland, Hung gary, Mexicco, New Zeaaland, Norway, Russian Feederation, Sppain, Switzeerland, and the former Yugoslav Republicc of Macedoonia.



The frequuency of meeasurement varied wideely across countries; c



Most couuntries opt for f a mix off monetary and a physicaal values;



87% of countries c useed a time-usse survey;

Inn terms of methodologi m ies used by the countriees, it was no oted that altthough the most m widely used approaach was thee input approoach, there was no singgle approach h that was seen s as wed that mosst countries first measuure physical units, and then t preferabble. The anaalysis show embarkk on measuriing monetarry values. 51.

Frrom the respponded couuntries only Finland, Sppain, and Un nited Statess construct a full sequencce of househ hold satellitte accounts. 52.

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Chap pter 2

Conce epts an nd Defin nitionss

2.1 In ntroducction This chapter articulates the concepttual framew work underlyying unpaidd household service work. T The chapter begins by outlining o ho ow the concept of unpaid householld service work w fits within tthe broad frramework of the SNA core c accounnts, how it contrasts c witth the underrlying producttion boundaary, and it foormulates thhe suite of cconcepts thaat structure households h ’ unpaid work. 53.

This concepttual framew work revolvees around thhe so-called third party criterion, thhe set of activitiees that defin ne househollds’ unpaid work, labouur input andd its related concepts, thhe alternatte valuation methods annd the necesssary caveaats due to thee absence of o consensuss in some arreas. 54.

2.2 S SNA prod duction n bounda ary and genera al produ uction b boundar ry The central framework f o the 2008 System of National of N Acccounts (20008 SNA) dooes not include the servicees produced by househo old for own consumptioon. The excclusion of thhese S producction bounddary, defininng which pro oductive acctivities servicess is establishhed in the SNA should be b accounteed for in thee compilatio on of nationnal accountss. 55.

Economic acctivities, aloong with theeir related gooods and seervices, covered under the 2008 SN NA forms a kind of dom main of deffinition. Thee 2008 SNA A makes thee distinctionn betweenn the generaal productioon boundary y and the resstricted prodduction bouundary. In ggeneric terms, tthe general production p boundary covers c produuction activ vities which entails the combinnation of labbour, capitall, and goodss and servicces to produuce outputs of o goods or servicess under the control of a well-defin ned institutioonal unit thaat uses inpu uts (§6.24). In contrastt, the restriccted producttion boundaary prescribbes a more restrictive booundary, particullarly in relattion to unpaaid activities within houuseholds (§§6.26). Whille the produuction of goods w within houseeholds is included in th he 2008 SNA A, the prodduction of seervices is exxcluded with thee exception of owner-ooccupied housing and thhe productio on of domeestic and perrsonal servicess by employying paid doomestic stafff. The mainn reasons foor the exclussion of the main m part of nnon-markett services prroduced witthin househoolds are sum mmarised inn § 6.30: “… …, the reluctannce of natioonal accounntants to imp pute values for f the outp puts, incomees and expendiitures assocciated with the t production and connsumption of services within w houseeholds is explaained by a combinationn of factors, namely thee relative iso olation and independennce of these acctivities from m markets, the extremee difficulty of o making ecconomicallyy meaningfu ful estimatees of their values, v and the adversee effects it would w have on o the usefu ulness of thee accountts for policyy purposes and a the anaalysis of marrkets and market m disequilibria.” 56.

O One of the more m fundam mental criticcisms faced by the SNA A concerns the t above nonrecogniition of serv vices providded within households h a being parrt of the pro as oduction bouundary, thus nott adding to output, valuue added annd GDP. Coonsequently,, GDP grow wth may be overestiimated in times of an inncreasing participation p n in the labo our market, which w oftenn 57.

23

coincides with a suubstitution of o own-use production p work of serrvices towarrds purchasing the relevantt services on the markeet. The Report by b the Comm mission on the Measurrement of Ecconomic Peerformance and Social Progress, P m more commoonly referred d to as the Stiglitz-SenS -Fitoussi Reeport (Stigliitz, Sen and Fitooussi, 2009)), also acknnowledges thhis point off critique, ass part of reco ommendation 5: “Broadden income measures m too non-markeet activitiess”, using thee following rationale: “… “ for many off the servicees people reeceived from m other fam mily memberrs in the passt are now purchassed on the market. m Thiss shift translates into a rise in incoome as meassured in thee nationaal accounts and a may givve a false im mpression of a change in living sta andards, whhile it merely reflects a shhift from noon-market too market proovision of services. Ma any servicess that ot recognizeed in officiaal income annd productiion househoolds producce for themsselves are no measurres, yet they constitute an a importannt aspect off economic activity”. a However, thee Stiglitz--Sen-Fitousssi Report does d not proppose to chaange the cenntral framew work of the SNA. S Instead,, it suggestss to compilee “comprehensive and periodic p acccounts of hoousehold acctivity as satelllites to the core nationnal accountss”, to complement the picture. p 58.

2.3 Defining D g own‐usse production w work off service es Inn the contexxt of the input valuation n approach of own-use productionn work of seervices, it is neccessary to measure m the time spent in i providingg those servvices. Howeever, before discussiing the sourrce data, whhich are the focus of Chhapter 3, it is i importantt to establish the concepttual underpiinnings of thhe concept of work to establish a consistent c s scope for the unpaid household service s worrk activities and, by exttension, aid in ensuring g the compaarability of the sttatistics. 59.

The 19th ICL LS establishees the relevant framew work. The fraamework is outlined inn Resoluttion I of thee Conferencee (Resolutio on concerniing statisticss of work, employment e and labour underutiliza u ation). 60.

Foor decades, statistics onn the measuurement of tthe labour force f have been b guidedd by standardds establishhed at the 133th ICLS in 1982. The framework f did d not incllude forms of o work outside the SNA prroduction boundary buut within thee general pro oduction bo oundary. Thhis gap s mattter of this reeport as it meant m unpaid householdd is particcularly relevvant to the subject service work was not n identifieed within the frameworrk and, thereefore, frequ uently not measureed. 61.

To address thhe limitationns that existt in the 19822 frameworrk, a new reesolution waas agreed at a the 19th ICLS. This resolution r p placed the em mphasis onn concepts th hat are the focus f of the pressent chapterr, and variouus measurem ment issues of relevancce to the meeasurement of work activitiees, which arre left to Chhapter 3. Am mong the keey changes agreed a weree: 62.

 

A definition for the concept c of work, w whichh covers alll productivee activities includingg those outside the SNA A productioon boundaryy but within the Generaal productioon boundaryy. A framew work that diistinguishes between diifferent form ms of work ranging froom the intended destinationn of the prodduction (own use or usee by others)) to other mework, em mployment is i more narrrowly characterristics of thee work. Witthin this fram defined as a work for pay p or profi fit. Figure 2..1 outlines this t framew work.

24



Employm ment (as now w defined) remains r the reference point p for labbour force statistics and unem mployment. However, additional a laabour underrutilization indicators are a defined too supplemeent statistics on unemplloyment.

Fiigure 2.1 beelow shows how the different workk activities identified inn the frameework align with the SNA A and Generral Productiion Boundarry. The Guiide focuses on measuriing s thee box highlighted in greeen. own-use production work of services, 63.

Figure 22.1 Forms of work fraamework and a relation nship to SN NA, 2008 Intendedd destination of prroduction

Forms off work

for own

forr use

final use

by others o

Own-use production n work

of

Emplooyment

Unpaid Other U O trainee (work foor pay or work woork acproofit) tiv vities*

off

ser- goodds vices

Relation to 2008 SNA A

Volunteer work

in market m in hoouseholds and a prooducing n nonmaarket sergoodds vices u units

Activitiees within thee SNA prodduction bounndary (restricted (r p production b boundary) Activities inside the General G prooduction boundary (general prroduction booundary)

Source: IILO (2013). Available A from m http://www.iilo.org/wcmspp5/groups/pub blic/---dgreporrts/--stat/docuuments/normattiveinstrumennt/wcms_230304.pdf

A Aligning the definitions used in thiss Guide to the t forms off work fram mework allow ws the measureement of a consistent c s scope of activities. Theoretically ‘u unpaid houssehold serviice work’ (the subject of this guidde) can coveer two of thee forms of work w identiffied in the work namely y “own-use production p work of serrvices” and “volunteer work of serrvices”. framew 64.

“O Own-use prroduction work w of serviices” (or ow wn use provision of serv vices) is defined in the fram mework as activity a to provide p serv vices for own final use. This covers a wide rannge of househoold servicess ranging froom cookingg and cleaning to childccare or carinng for elderrly family m members. An A importannt element of o the definiition relates to the meanning of ‘ow wn final use’. Thhe standardss clarify this as coverinng activitiess where houusehold mem mbers, or family memberrs living in other houseeholds, conssume the prroduced servvices. 65.

The standard ds define “V Volunteer wo ork of serviices” as any y unpaid, noon-compulsoory activityy to provide services forr others. In the case of volunteer work w producction “for otthers” refers too work perfformed: 66.

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aa) through,, or for orgaanizations comprising c m market and non-markett units (i.e. organizaation based volunteerinng) includinng through or o for self-help, mutual aid or communnity-based groups g of which w the volunteer is a member bb) for housseholds otheer than the household h o the volunteer workerr or of relateed of family members m (i.e. direct vollunteering) These two fo orms of worrk can involve very sim milar activitiies and, the recipient off the servicess in questionn identifies the boundaary betweenn them. As an a illustratioon, the definnitions consideer cooking meals m and brringing them m to an eldeerly relativee at their home as own--use producttion work off services, while w doing g the same activity a but for f the beneefit of a nonn-family memberr in anotherr household is volunteeer work. 67.

Therefore, inn measuringg unpaid houusehold servvice work itt is recomm mended that in additionn to identify ying the type of activityy and the tim me involved d, the naturee of the inteended recipiennt(s) must be b clearly deelineated in order to alllow the activ vities to be separated between b own usee provision of services and volunteer work. 68.

The distinctioons betweenn own-use production p w work of serrvices and volunteer v woork mean thhat they mayy require altternative ap pproaches both from a measureme m ent and valuation point off view. The developmeent of this guuide has foccused on thee measurem ment and valluation of own--use producction work of o services. It is very im mportant thaat the scope of activitiees coveredd by any esttimates shouuld be transpparent, usinng appropriaate methodss. Followingg this Guide w will allow th he developm ment of estim mates of ow wn-use prod duction workk of servicees; nonetheeless, much of the guiddance will allso be of rellevance for volunteer work. w The Task T Force considers thaat measurem ment and vaaluation of volunteer v w work is a sub bject that woould benefit from futuree work to prrovide speciific guidancce. Chapter 8 discusses this furtherr. 69.

Inn addition too defining thhe conceptss, the resoluution covers various isssues of relevvance to the meaasurement of o work activvities. Thesse include: 70.

 

Populatioon coveragee – recommeended as ussual residentts for the puurpose of staatistics of work. Age limitts – differennt age limitss will be rellevant depennding on the country coontext and the particular p poolicy needs (e.g., if the working acctivities of children c neeed to be measuredd). Howeverr, data shouuld at least cover c the poopulation ag ged 15 and oover, and ensurre that this age a group iss clearly ideentifiable too ensure inteernational comparabbility.

The design of o any surveey used to co ollect statisttics of workk must take these issuess (along with maany others) into accounnt. They willl be particuularly relevaant in comparing statisttics from different sourrces. It is geenerally exppected that measuremen m nt will be unndertaken thhrough ment of workk househoold surveys. Chapter 3 and Chapteer 5 discuss the issue off measurem activitiees in more detail. d 71.

A An important element of the definittion of workk from the 19 1 th ICLS iss the conceppt of the third paarty criterion n. Hawrylysshyn (1977)) describes this t in a forrm that appeeals for its combinnation of ecoonomic theoory guidancce and comm mon sense. Hawrylyshy H yn regards unpaid u househoold service work as “thhose econom mic servicess produced in i the houseehold and ouutside the marrket, but wh hich could be produced by a third person p hiredd on the maarket withouut changinng their utiliity to the members of the t househoold”. 72.

This so-calleed third partty criterion is i central too the assessm ment of wheether servicces are recordeed as work or o just leisurre. At the coore of this distinction d iss the differeence betweeen producttive and nonn-productivee unpaid hoousehold serrvice work. Under this view, an acctivity is 73.

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producttive only to the extent that t it can be delegatedd to another person. Forr example, activitiees such as cleaning, houuse maintennance, launddry and footwear care, shopping and a househoold manageement, proviiding help to o other houuseholds andd volunteer work compply with this critterion, whicch make them in scope for the meaasurement and a valuatio on of unpaidd househoold service work. In coontrast, activ vities that do not lend themselves t to t exchangee and benefit only the peerson doing it such as watching w a movie m are ex xcluded. Sim milarly, the output c out with w of goodds (clothing,, hunting, fiishing, colleection of firrewood), even though carried unpaid work and foor own conssumption pu urpose, is not considereed to be parrt of the actiivities measured, ow wing to the ffact that theey are alreaddy accounteed for as parrt of the SN NA core to be m accountts. The Guide em mphasises that t househoolds may bee of any sizee and thereffore unpaid househoold service work should be measuured in singlle-persons households h i someone can be if hired too perform th he activities. However, the single-pperson hourrs dedicated d to self-caree health groominng and prov viding theraapies are exccluded. 74.

O Overall, activvities that do d not involvve producinng services, such as self-administeered personaal care and activities a thaat another person p cannnot perform on one’s ow wn behalf arre consideered to be ouutside the sccope of worrk as defineed in the stanndards from m the 19th IC CLS. 75.

A Although acttivities coveered by the concept of unpaid u work are adequ uately delineeated, some exxceptions sttill exist. Foor example, some produuctive activ vities (e.g., educating e onneself and selff-administerred personaal care) desp pite the fact that they co omply with the third peerson criterionn are excludded, while others o that can c be view wed as leisurre (e.g., garddening, playying with chhildren) are included. i 76.

The definitio on of a houssehold withiin this guidaance is geneerally consistent with thhe SNA. U Using this deefinition, thhe householdd is a groupp of people – or a persoon living aloone sharing the same house, h poolinng all or parrt of their inncome and assets, a and collectivelyy ming certain types of gooods and serrvices (mainnly housing and food). However, consum househoold labourerrs (e.g. nannnies, chefs, etc.) living within in a household are excludeed. Further, all househholds residinng in the nattional territoory are inclluded. Howeever, in conntrast to A, the defin nition of houusehold doees not includde people livving together in hospittals, the SNA asylumss, convents,, prisons, ettc. 77.

2.4 What act W tivities sshould b be inclu uded? M Many internaational instiitutions have detailed thhe activitiess that they consider c parrt of own-use production work of services. s In addition, thhe Task Forcce in chargee of putting a inventorry of activitiies considerred under thhe wide rangge of togetherr this Guidee compiled an existingg national prractices. Taable 4.1 tran nslates the reesults of theese efforts into the set of o recomm mended activvities. Whille this set off activities represents r thhe commonn denominattor across internationa i al practices, countries should not view v this listt as exhausttive or as operatioonal guidannce for data collection. Cultural diffferences may m lead to a variance inn the delineattion of norm mal own-usee productionn work of service activ vities that coould be conttracted to the m market. Mem mbers of thee internation nal communnity should adopt a flexxible approaach, which sstrives to meeet internatiional guidellines all thee while refleecting the lo ocal peculiarrities in their ow wn national program. Similarly, thhe approach must be forrward lookiing to guaraantee that measures of ow wn-use prodduction worrk of servicees keep up with w the chaanging a the offload of some market actiivities to ow wn-use prodduction workk of environnment such as 78.

27

servicess activities (e.g., ( self-seerve gas staations, bankiing and other online seervices). Exiisting classificcations on time-use, t as discussed further f in Chapter C 3 an nd Chapter 5, 5 are an impportant referencce point in designing d d collectioon and disseemination programmes data p s.

2.5 Valuing g own‐usse production w work of f service es 2.55.1 Introduction O One of the most m importaant issues too consider when w includ ding own-use productioon work of serviices activitiees within thhe productio on boundaryy concerns the t valuationn of the releevant servicess. Given thaat directly observable o m market pricees for these services aree not availabble, econom mist statisticians have too impute a price p from otherwise o ob bservable data. Two methods m for inferring the vaalue of own--use producction work of o services are a commonnly utilized:: the v appproach. Whhile this secction providdes a input vaaluation appproach and tthe output valuation brief ovverview of both b methodds, Chapter 3 discussess them moree in detail. Here, H one shhould acknow wledge that both b methodds could reiinforce eachh other, by comparing c t results of the o both methoddologies. 79.

The output annd input appproaches baasically use the same ellements – in ntermediatee consum mption, taxess less subsiddies on prodduction, connsumption of o fixed cappital (or depreciation), and (net) operatting surpluss. The calcuulation for eaach approacch is presennted below. 80.

Output--based methhod







































Input-based method









































2.55.2 The input valu uation ap pproach A As defined by Chadeau (1992) “thee input apprroach consissts of imputting a moneyy value to labouur inputs dirrectly. Fixedd capital coonsumption,, Gross Opeerating Surpplus, net inddirect taxes annd intermeddiate consum mption are then t added to t obtain an n estimate fo or the value of market household production” p ”. Under thiis approach,, the goal is to arrive att a marketo costs-bassed approachh to the valu uation of thhe relevant services, s equivalent price ussing a type of 81.

28

where tthe value off output equals the sum m labour, cappital and inttermediate goods g and services. Often nnon-labour inputs are iggnored, as thhese inputs are already y counted ass personal expendiiture on gooods and servvices in GD DP. However, different from applying this methoddology to go overnment services s wheere actual saalaries and wages w are paid, p the usee of the cost-bassed methoddology in thee case of ow wn-use prodduction work k of servicees is more problem matic, the main m reason being b that for f the mainn part of the costs invollved, i.e. labbour input, nno actual payyments are involved. Therefore, T o needs too impute a value one v for compennsation of em mployees. The Guide reecommendss making usee of the inpuut method to t valuing own-use o prooduction work off services inn view of thhe availabilitty of inform mation on th he labour, caapital and other materiaals. Implemeentation of the t input vaaluation appproach requiires informaation about time use of respondents r , the use off household equipment and associaated capital flows, and the t intermeediate consu umption of goods g and services s used by househholds in thee productionn processs. 82.

Fuurthermore,, the Guide recommendds that valuation be bassed on the replacement r t cost generalist approachh (RC-G) which w consissts of takingg market waage rates froom similar paid p a applyinng them to thhe hours spent doing own-use production work of work occcupations and servicess activities. This valuattion methodd uses hourlly earnings of o individuaals who are engagedd in similar activities inn the markeet sector to value v the am mount of tim me spent on ownuse prodduction worrk of services. Schreyeer and Diew wart (2014) also a argue for f a replaceement cost as a way of vaaluing labouur input intoo own-use production p w work of servvices. Their ng preferencce to a replaacement- cost valuationn, as theoretiical findingss lent “suppport to givin long as the purposee is measuriing the valu ue of househhold producction”. Bridg gman (20166a) w capital durables annd show thaat the financcial rate extendss this analyssis to an envvironment with of returrn is the corrrect imputattion for cap pital services. Replacem ment costs should be baased on gross w wages (i.e. before-tax) and a includess fringe bennefits (such as sick leav ve, paid vacaations), and an eestimate of employers’’ social secuurity contribbutions. Thee rationale behind b the additionns to wages is that housseholds payy for these supplementss if they buyy market subbstitutes rather thhan makingg such produucts themselves. 83.

O Own-use pro oduction woork of servicces requires various connsumer duraables, such as kitchen appliances or transporrt equipmennt. It is then “preferablee to estimatee a value off the capital services thaat can be derrived from using the caapital goodss over their entire serviice life, umbers on thhe annual purchases”. These T households’ con nsumer duraables instead of using nu a current exxpenditures in the core SNA accouunts, are cappitalized. expensees, treated as 84.

The Guide reecommendss that gross operating o suurplus (GOS S) be includded to valuee ownuse prodduction worrk of services. Moreov ver, the Guidde recommeends that thee best methodology to estim mate GOS iss the so-called capital services metthodology outlined o in more m detail in Chapterr 3. 85.

2.55.3 The o output va aluation a approach h Inn this approach, the vallue of servicces produceed by own-uuse productiion work off servicess activities is i set equal to the pricee paid for sim milar servicces traded on o the markeet. The output iis then calcuulated by thhe number of o units prodduced timess the relevannt market prrices. For exaample, if a factory f makees one milliion toy carss in a year an nd sells them m for £3 eaach then the totaal output equ uals £3 milllion. For maarket servicees, businessses would normally n do this calculattion themseelves and repport the totaal monetaryy value of th he turnover directly d (whhich is then neeeds adjusted d for the changes in thee value of innventories of o finished products). p 86.

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The applicatiion of the ouutput valuattion techniqque in valuinng own-usee productionn work of serviices looks siimple and straightforw s ward in theorry, but in prractice it shoows to be quite challengging; there is very limiited data on the volumee of own-use productioon work of services s produceed. It may be b feasible too find suitabble equivaleent market prices p for own-use production work off services. It may be more problem matic to adjuust for diffeerences in quuality. Furtherm y similar, inn the sense that t having a dinner ouutdoors more, the seervices willl not be truly is not eqquivalent too cooking meals m at hom me. Taking care c of one’’s own childdren is diffeerent from thhe services provided p byy a nanny orr childcare. It I is with thhese consideerations in mind, m m ow wn-use and the greater avaailability of time-use daata, that the Guide recoommends measuring u the inp put approachh. producttion work off services using 87.

estimates of W With the chaallenges invoolved with developing d o the value of own-usee producttion work off services itt is likely thhat establishhed methodss of quality assurance will w be requiredd to limit thhe impact off methodoloogical/data driven d bias. Where the output valuuation techniquue relies onn different data d sources to the inpuut valuation technique, it may then be triangullated with th he input valluation techhnique to im mprove the accuracy a of valuations of o ownuse prodduction worrk of services. 88.

Inn absence off a time-usee survey, thee primary data d source for f producin ng input technique valuatioons, the outpput valuatioon techniquee representss a good alteernative appproach for valuing v own-use production work of services. s It can c be timelly to producce, highly comparable with w o capturing market equuivalent market equivalent services, annd representt an effectivve method of without havving to estim mate a rangee of individuual compon nents. values w 89.

H However, if the t output valuation v is used in isollation, any understandi u ing of the hoours of own-use production work of services s unddertaken is lost l and withhout a recorrd of the woorking l assocciated with own-use o hours itt is not posssible to calcuulate the productivity levels producttion work off services (ooutput per hour h workedd or output per p worker)) (See Hollooway, 2002). In I addition, because thee output meethod createes a ‘catch all’ a valuation of output,, little is known about the person produucing own-u use productiion work off services, liimiting the i and ou utput-basedd potentiaal policy appplication off any resultss. The combbination of input estimatees producedd in parallell could offerr interestingg insights innto the divission of macrro totals of own--use producction work of o services. The Guide encouragess more counntries to adopt this approacch. 90.

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Anne ex 2.1: B Backgrou und to R Resolutiion I of tthe 19thh ICLS Foor decades, standards established e at the 13th ICLS I in 198 82 have guid ded statisticcs on the measureement of labbour force. Of particular note is thhat these staandards inclluded definiitions of a number of key cooncepts inclluding: 91.



 

Economiically Activve Persons:: all personss who furnissh the supplly of labourr for the productioon of econom mic goods and a servicess as definedd in the SNA A during a specifiedd time-refereence period. It can be broken b downn into persoons in emplooyment and unem mployed perrsons. Persons in Employm ment: Peop ple at work or; not at work w but with h a job or business b Unemplo oyed person ns: People who w were not n in emplooyment and were seekinng and available for work.

A key featuree of the 19882 framework is that it created a diirect link beetween the SNA S producttion boundaary and empployment, whereby w empployment was w all activiity that provvided labour iinput to production. In theory, thiss created thee benefit thaat labour inpput measureed on this bassis (i.e. employment) would w corresspond to outtput measurred using th he SNA and, thereforre, be usable as a denom minator in productivity p y measurem ment etc. 92.

W While these standards s prrovided a basis for connsistent meaasurement of o economicc activity over a llong period,, various deficiencies arose a againsst user needss, which ledd to increasiing calls over thee years for an a update too the framew work. Amonng the mostt important issues arisinng were: 93.

The concept of employm ment was to oo wide giveen the inclusion of variious forms of o ownuse prodduction worrk of services. This creeated a mism match betweeen policym makers needds and the coveerage of thee statistics. 94.

The concept of unemplooyment was too narrow w to accountt for all form ms of labourr underuttilization. 95.

The framewo ork did not include i form ms of work outside the SNA produ uction bounndary but withhin the geneeral producttion boundaary. This gapp is particullarly relevan nt to the subbject matter oof this reporrt as it the framework fr d not idenntify own-usse productioon work of services did s and, theerefore, werre not frequeently measu ured. 96.

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Chap pter 3

Metho odolog gical Ap pproach hes

3.1 In ntroducction The present chapter c dealls with the methodolog m gy that leadss to the estim mation of thhe value of own--use producction work of o service. The T methodoology underrlying the estimation of the own-use production work of service s is strructured aloong four maajor buildingg blocks: 97.

t popullation a) The primarry source daata and the target b) The classifi fication of acctivities c) The imputaation of the value of ow wn-use prodduction work k of servicees based on the t replacemennt cost approoach (RC) d) The imputaation of the estimates foor the non-llabour comp ponents (GO OS, taxes leess subsidies, intermediatee consumptiion) 98.

The chapter comprises c a annex off existing praactices of a sample of countries. an c

3.2 Data and D d covera age The Time Usse Survey (T TUS) is the widely regarded as thee best sourcce of inform mation to measuree own-use production p w work of serv vices (labouur time inpuuts to own-uuse productiion work off services). The reasonss for this are discussedd and emphaasized in thee guidance already a produceed by United Nations Statistics S Division (UNSD) (UN, 2005), 2 UNE ECE (2013) and Eurostaat (2009). Thhis Guide does d not repeeat the detaailed guidan nce on the coompletion of o timeuse survveys contain ned in thosee documents. Thus, couuntries that do not havee an existingg TUS in placee for the meeasurement of o time spennt on own-uuse productiion work off services arre stronglyy encourageed to set thiss program inn motion. 99.

100. M Much of the guidance avvailable foccuses on ideentifying thee best methoodology to

undertaake a one offf data collecction. Howeever, it wouuld be highly y beneficiall if alternatiive methoddologies cou uld be used in i householld surveys to collect thiis informatiion due to thhe relativee cost and co omplexity of o completinng a dedicatted TUS. Bo oth the UN Guide (20005) and the UNE ECE Guideelines (2013) briefly disscuss the idea of combiining different approacches to providee a time seriies of data oon time-use.. One combined approaach, which is i worthy off consideeration, is an n infrequentt full TUS (perhaps ( eveery ten yearrs) complem mented by a light diary appproach com mbined withh another suurvey in betw ween (perhaps every 5 years). Whhile the lighter sset of data will w not provvide for as rich r analysiis of time, itt will allow for updatess of key indicatoors on time spent on diffferent activvities. This would be coompatible with w the purrpose of valuatioon of own-uuse productiion work off services annd involve lower cost thhan an apprroach that reqquires the prroduction off a full TUS S. 101. Fu urther reseaarch is requiired on the suitability of o light apprroaches as a replacemeent or

supplem ment for estiimates from m full time-u use surveys. At the tim me of writing g of this guiide, various internationnal agencies including the t ILO andd UNSD aree considerinng developinng and a a approaches to time-usee data collecction includ ding light diary approacches. testing alternative The foccus of such work w wouldd be on asseessing the reelative qualiity and burd den of thesee differennt approachees which coould inform further how w countries can collect time use daata, not

32

just on a one off baasis but as a time-seriess in the mosst efficient manner m possible while maintaiining data quuality. 102. In n addition too carefully selecting s annd designingg the data coollection instrument, a wide

range of other methhodologicall choices (suuch as colleection modee, weightingg methodoloogy etc.) y considereed. UN Guid de (2005) annd the UNE ECE Guideliines (2013), as well need to be carefully t issuess. as Chappter 5 of thiss Guide proovide further detail on these 103. W When measu uring forms of work, thhe Guide aliggns with IL LO recommeendations abbout

measuriing and repoorting by agge group. Th he ILO streess that data should at leeast cover the t populattion aged 15 5 and over. National N prriorities could warrant applying a a lower l age threshold, for exam mple, if therre is high naational demaand for dataa on work by children. Such g ‘15 years y and ov ver’ is clearlly national adaptationns can be maade as long as the age group identifiaable to enabble internatiional compaarisons. Thee target population alsoo entails thee followinng exclusions for conceptual and operational o matic persoonnel reasons: fooreign diplom and mem mbers of th heir househoolds who did d not qualiffy as nationaal residents;; members of o foreign defence forrces (and thheir dependaants); all perrsons living g in collectivve dwellinggs (e.g., prisons,, hospitals).. 104. The subdivission of the population p innto groups should be guided g by prrinciples such as

relevance, reliability (sample size) and coomparabilityy across tim me and spacee. Possible ggroups y status, num mber of chiildren, labouur force stattus, and are sub--national residence, gennder, family age of tthe youngesst child.

3.3 Classification o of activitties to b be measured th

105. The Resolutiion I of the 19 ICLS has h identifieed the rangee of activitiees covered bby own

use provvision of seervices as: aa) househoold accountiing and mannagement, purchasing p a and/or transsporting gooods; bb) preparinng and/or seerving mealss, householdd waste disp posal and reecycling; cc) cleaningg, decoratingg and mainttaining one’’s own dweelling or premises, duraables and otheer goods, annd gardeningg; dd) childcarre and instruuction, transsporting andd caring for elderly, dep pendent or other househoold members and domeestic animalss or pets, ettc.; 106. Fo or the purpo oses of dataa collection,, a more dettailed classification thaan the one

presenteed in the ressolution is required. r Ev ven though several classsifications are developped coverinng activities performed in the homee and for onneself, until recently there was no single agreed internationa i al standard. Such a classsification (ICATUS ( 20016) was enndorsed by UN U Statisticcal Commisssion in Marrch 2017. 107. A Another classification avvailable is the t Harmonnized Europeean Time Use U Survey

(HETU US) preparedd by Eurostaat, which is subject to revision r witth referencee to ICATUS S 2016.6 The T UNECE E Guidelinees (2013) innclude recom mmendation ns for a broaad activity classificcation of tim me use baseed on assesssments of IC CATUS and d HETUS, and a on policcy needs. C Chapter 5 presents morre detail on these classiifications.

6

Eurostaat. 2009. Harm monized Europpean time use surveys: 20088 Guidelines. Luxembourg..

33

108. V Various diffeerent approaaches have been b taken in surveys to t convertin ng these

classificcations into an activity list for dataa collectionn. In 2015, thhe ILO com mmenced a series s of th pilot stuudies in folllow-up to thhe 19 ICLS S. Within thhese pilot stuudies, the following fo breakdoown of activvities is beinng used throough stylizeed questionss:        

planning the household finances or paying bills ng dishes or arranging food f suppliees cooking, serving meeals, washin washing, ironing, meending clothhing or houusehold linenn her housewoork or yard work, such as cleaningg, weeding, cutting grasss doing oth shoppingg for the houusehold doing houusehold maaintenance or o repairs in your dwellling such as painting, decoratin ng, installingg fixtures orr fittings looking after a childreen 17 years or younger who live in n this househhold providing g care, help or assistancce to adult persons p whoo live in this householdd because of o an illnesss, disability or old age

109. C Conclusions on the easee of reportinng using thiss breakdown n are not yeet available but it

represennts one posssible operattionalizationn of a list off activities within w own use provision of servicess. The ILO will releasee further guiidance on thhe measurem ment issues surroundinng these activitiees as they coontinue theiir work. 110. The choice of o activity list is closelyy linked to the t data colllection apprroach. Withh a full

diary, thhere is no pre-defined activity a list so the classsification is used for co oding purpooses and no furthher amendm ment is needded. For a lig ght time-usee diary, the recommenddation is thaat the activitiees cover thee full day coomprehensivvely but thee list should involve no more than 30 activitiees. For styliized questioons, the list needs n to be relatively short s to easee respondennt burden. 111. In n addition too identifying the type of o own-use production p work of serrvices activiity, it is

also neccessary to inndicate the recipient r off the servicee (it must bee a household or familyy memberr including the single-pperson housseholds carrrying out thee activity) and a that the activity is unpaiid. Only und der the com mbination off these elem ments is it po ossible to classify the activity a as own use provision of servicces. 112. The remaind der of this chhapter assum mes that a tiime-use surrvey, with th he appropriaate

classificcations, is thhe source of data to esttimate the volume v of ow wn-use prod duction worrk of servicess. As alreaddy noted thee design of a TUS invollves many methodolog m gical choicess. Chapterr 5 discussees these in fuurther detail.

3.4 Valuatio on techn niques ─ ─ the in nput and d outputt valuatiion approaches 113. There are two methods for f valuing economic outputs o of own-use production work of

servicess: the input summationn of inputs (iindirect valuuation) and d the output evaluation (direct valuatioon). The inpput approachh, which coonsists in meeasuring thee volume off inputs as an a indicatoor of the vollume of outtput, is seen n as more realistic to im mplement. The T output approach a is recoggnised as beeing the bestt approach to t estimatinng own-use production work of serrvices and beinng conceptuually consisstent with thhe valuationn of market production. p . However, the output m method is difficult d to im mplement due d to the laack of detailled informattion on the outputs of households and on prices of goods andd services off similar typpe and qualiity on the market. m 34

3.44.1 The input app proach 114. The followin ng section buuilds upon proposals p ooutlined in section 2.5.1 1 detailing various v

approacches to measuring eachh of the com mponents in the input ap pproach. T To estimate a reliable value v of ownn-use produuction work of services, countries need n to proceedd with a num mber of com mplementaryy steps. Firsst, average daily d minutees spent of househoold work recorded in thhe TUS willl be consideered for each demograp phic sub-grooups (i.e. grooups of females and maales classifieed accordinng to their agge group, marital m statuss, whetherr they were employed or o if they haave childrenn) to generaate average weekly w houurs spent on ownn-use producction work of o services activities. Second, S the average ho ourly wage rate r based oon the imputted wage rate is appliedd to the average weeklyy hours to arrive a at the weekly value off own-use production p w work of serv vices. Thirdd, these averrage amounnts are then multipliied by the number n of weeks w in a year, y appliedd to the population in each demogrraphic sub-grooup and sum mmed to proovide annuall estimates of the valuee of own-use productioon work of serviices. Table 3.1 3 provides guideliness on the input-based meethod. 115.

Table 3.1 based meth hod: conden nsed guidellines Input-b Calculaation

Co omponent

Deefinition / description d

Details in chapteer

Tim me

Tarrget Populaation ow wn-use produuction workk of servicess, acttivities Tim me use dataa Waage rate: e.gg., national LFS reccommendedd: replacemeent cost and d generalistt wage

3.2 2.3 andd 3.3

* Waage *

=

3.2 andd 5 3.4.1.11

mputed com mpensation for labour input Im Tax xes

3.4.1.33 and 4.2.2.33

Sub bsidies

3.4.1.33 and 4.2.2.33

+ Coonsumption of fixxed capital Reeturn to capiital

Deecline of durrables used for houusehold servvice work Th heoretical “pprofit”

4.2.2.22 and annex x 4.3

+

a Grross value added Inttermediate connsumption

Raaw materialss, energy, eqquipment ettc. useed for houseehold servicce work

4.2.2.11, annex 4.1 and annex 4.2

=

alue of outp put (sum off costs) Va

+

3.4.1.22 and 4.2.2.22

+ =

3.4.11.1 Imputted compen nsation forr labour in nput 116. H Historically, one of the main m challeenges with valuing v own n-use producction work of

servicess has been the t lack of available a daata for wagees. With wagges disaggreegated by occupattion, there are a only a feew differentt occupationns availablee that may be used to prrovide a 35

market equivalent wage rate. Now N there are a far moree detailed daata sources available, which w d for a wide w range of o occupatioons. This evo olution of available a waage data can provide wage data o be valued than was has alloowed many more own-uuse producttion work off services to historiccally possiblle. 117. W Wage data foor most countries is avaailable from m their natioonal LFS. Other countriies may

have acccess to adm ministrative data on payy, for exampple, Canada have the monthly m Survvey of Employyment, Payrrolls and Hoours (SEPH)) which proovides the prrincipal inp put to labourr income statistics an nd the Uniteed Kingdom m have the Annual A Survvey of Hourrs and Earnings mple of inco ome tax recoords. (ASHE) which takkes a 1% sam 118. Time use surrveys often collect wag ge data; how wever, it is im mportant to o consider which w

estimatees of wagess are most reeliable. Selff-reported surveys, inclluding TUS Ss and LFSss may be liable too some self--reporting bias b and wheere changess in the leveel of wages often o drive estimatees of the vaalue of own--use producction work of o services over o time, itt is necessarry to start with the very best qualityy data sourcce available.. However, the same seelf-reportingg ur time diariies to recordd concernns should noot detract froom the exceellent abilityy of 24-hou particippant activityy with limiteed error as shown s by Juuster and Sttafford (19991) who, as stated earlier iin this sectioon, found tiime diary acccuracy to compare c fav vourably to alternate daata sourcess. 3.4.1.1.1 Opportu unity cost a and replaceement cost a approachess 119. N National accoounts guideelines recom mmend the imputation at a the price of some equuivalent

marketeed good or service s or, aas a second best approaach, imputattion at the cost c of inputts. Valuingg the labourr componentt of own-usse productioon work of services s req quires markeet-based wage raate. While actual a hours worked cann be measurred with som me precision by activitty, there is a variiety of apprroaches to choose from m to value thhese hours. The T choice of the impuuted wage raate has a siggnificant beaaring on thee valuation and, a indeed d, is the critiical factor inn any subsequuent comparrisons betw ween paid annd own-use production work of serrvices comparrisons. Curreently the tw wo main appproaches takken include::  

The oppo ortunity costt method - the t person’ss actual emp ployed wag ge rate to vallue own-use production work. milar paid work The replaacement cosst method - using markket wage rates from sim occupatio ons and appplying them to the hourrs of own-usse productioon work of services. This is the recommen nded approoach.

3.4.1.1.2 2 The opp portunity co ost method 120. W With this meethod, paid market m work k and unpaiid householld work tradde off againsst one

anotherr. The assum mption is thaat time spennt in one secctor is seen to be at thee expense off time spent inn the other. The opportuunity cost method m to vaaluing own--use producction work of o servicess is based on n the premiise that wheen an individdual engagees in own-usse productioon work of serviices, activitiies that coulld be done instead i alonng with all associated a monetary m annd nonmonetarry benefits are given upp. 121. The use of an n opportunity cost wagge also implies that the value of ow wn-use prodduction

work off service miight be vastlly different depending on who is performing p the task – a common criticism of the oppoortunity costt method. Preparing meeals, for exaample, is likkely to require the same leevel of skill whether thee individuall is a labourrer or a docttor, but one has a n added com mplication arises a for unnemployed people p much hhigher wage rate than thhe other. An ve no equiv valent marke et wage. A further wea akness of the e opportuni ity cost meth hod is who hav the assuumption thaat people cann always chhoose whethher to spend d an extra hoour on paid work or 36

on anotther activity y. Finally, thhe aim shou uld be to measure what householdss actually prroduce instead of what theey might havve produced d on the maarket insteadd. 3 Replacement cost a approach 3.4.1.1.3 122. The premise of the replaacement cosst method iss that the tim me spent onn unpaid activities

can be valued v at th he hourly eaarnings of inndividuals who w are engaged in sim milar activities in the marrket sector. It I is assumeed that houssehold mem mbers and their “replaceements” are equally producttive. The assumption beehind this approach a is that househ holds save money m by deeciding to perfoorm the activ vity themseelves. The amount a theyy save, and hence h the vaalue to the househoold of doingg the work, is the cost of o purchasinng the samee services inn the markett or hiring ssomeone elsse to perform m the activiity. 123. There are stilll many cho oices availab ble within thhe replacem ment cost ap pproach. A

specialiist wage couuld be used which wouuld be of a higher h rate paying p a preemium for skills s which aallow them to t carry outt the work. Alternativel A ly a generallist wage co ould be usedd which represennts workerss with less skills and litttle training is needed to perform thheir duties. R Replacemen nt cost speccialist variaant 124. Fo or the speciialist variannt, the replaccement costts of unpaid d activities are a imputed based

on hourrly earningss of people employed e inn matched occupations o . With this variant, v the wage rate varries accordin ng to activitty, as workeers in differrent occupattions are asssumed to unndertake the diffe ferent activitties. For exaample, childdcare activiities requiree a different wage rate than t house m maintenancee activities, which are different d agaain from rep pair servicees. In this vaariant of the repllacement coost method, wage rates paid to speccialized workers emplo oyed in the market sector aare used (e.gg., the wagees of a cookk in a restaurrant for food d preparatioon activitiess). The major problem p witth this variannt is that thee working conditions c and a productiivity of the replacem ment workeer will vary significantlly from thosse of the unnpaid househhold workerr. From a practical perspective, it is unnlikely that market repllacements exist e for all household h activitiees to be valuued. R Replacemen nt cost geneeral method d variant 125. In n this varian nt of replaceement cost method, m thee wage rate used u is that of a generaal

housekeeeper. This approach apppears to bee the most appropriate a given (i) working condditions are simiilar for manny activitiess, if not the same, as thoose faced byy the producer of own--use producttion work off services; aand (ii) a geeneral houseekeeper is more m likely to t perform the t majorityy of the taskks that are typically t carrried out in a household d. Even so, there will still s be a numberr of househoold productiive tasks thaat a housekeeeper would d be unlikelly to carry out o and applyinng the singlee wage rate may lead too inappropriiate valuatioons. 126. So ome countrries such as Australia, Canada C and Mexico hav ve developeed a hybrid

replacem ment cost, that t combinnes the cost general metthod (houseehold workeers wage ratte) to assess uusually taskks performedd by a houseekeeper likee cleaning the house orr preparing meals; m and the cost speciaalist (wage rates r employyed in the inndividual fu unction approach) in orrder to b hired in the market, like plumb bing or mechhanical worrkshops. estimatee the services that can be 127. The RC-G ap pproach connsiders houssehold mem mbers and thheir “replaceements” as equally

producttive and req quiring limitted skills to perform their tasks. Inn the RC-G approach usses paid domestiic employeees wage ratees to value the t bulk of housework because paaid domesticc employyees work inn the same ssetting and under u the saame conditio ons as housseholds’ meembers. Howeveer, the dutiees of domesstic staff do not includee all househoold work thhus some stuudies 37

adopt hhourly wage rates of speecialised wo orkers (RC--S) for specific activitiees such as care c of childrenn because thhey are betteer suited forr valuation. 128. In n Canada, th he estimatess based on the t RC-G inn Jackson annd Chandlerr’s (1995) study s is

obtained through a hybrid appproach combbining the tw wo variantss of the RC. All househhold w child dcare is valuued at work exxcept childccare is valueed at the cosst for ‘otherr domestic work’; the costt for ‘physiccal care of children c andd other ownn-use producction work of o services activitiees at the sam me costs as with the speecialist variiant. This is also the caase of Austraalia (1997) and a Mexico o (2003-20115) who proovided an exxample wheere a hybrid approach iss adoptedd, applying the t generaliist variant for f low-skillled labour and a a speciaalist wage raate for specialiized servicees such as pllumbing and d gardeningg. The suitabbility of this approach needs further explorationn and testingg against othher methodss. 4 Gross orr net wagess? 3.4.1.1.4 Another choiice to make is whether to use gross wage ratees (that is including oveertime 129. A and beffore tax and deductionss) or to use net n wage rates. Ultimattely, it is thee intended use u of these sttatistics thatt will guide this decisioon. If the esttimates are primarily used u to comppare the value off own-use production p w work of serv vices to paidd work thenn gross wag ges represennt the best chooice as that would be most m consisttent with thee core Natioonal Accoun nts practice. Alternaatively, if the primary purpose p of valuing v ownn-use producction work of o services is to record tthe benefit of o these servvices to the individual or household that receives them thhen it may be more effective to use net n wages too extend esttimates of household h inncome for example. 130. U Using net waages to extend measurees of househhold disposaable incomee may be useful if,

for exam mple, addreessing the reecommendaation 5 of the Stiglitz ett al. (2009) Report R by thhe Commisssion on thee Measurem ment of Econ nomic Perfoormance and Social Prrogress, whiich seeks too broaden inncome meassures to ownn-use produuction of serrvice work. Furthermorre, by developping extendeed householld disposable income eestimates to include ow wn-use produuction of serviice work alsso complem ments recom mmendation 3 of the sam me report (S Stiglitz et al., 2009) which eemphasizes the househoold perspecctive. 3.4.1.1.5 5 Sensitivity tests 131. Seensitivity teests to impu uted costs neeed to be caarried with other o methoods to assesssing the

differennce made to o the estimattion of valu ue of own-usse productioon work of services. Inndeed, the choiice of the im mputed wagge rate has a significantt bearing onn the valuatiion and, inddeed, is the critiical factor inn any subseequent compparisons bettween paid and own-usse productioon work of serviices. As statted by Jacksson and Chaandler (1995) “among the internattional studiees with broad ccoverage off the populattion, estimaates range from fr 25% too 70% of GD DP or GNP and the variatioon by valuattion methodd is almost as a great”. This T finding g confirms th he latest ressults obtained by Statisttics Canada,, which indiicated that tthe value off own-use prroduction work w of m 33% of GDP G (with RC-G) R to 522% (gross opportunity o cost). servicess varied from 3.4.1.1.6 Accounting for thee differencees in qualityy between p paid and unpaid work?? 132. In n addition too considerinng which waage to selecct there are still s further quality or

‘hedoniic’ considerrations relateed to the ap pplication off wage ratess. Varjonen et al. (19999) have suggestted that skillls develop when w carryiing out speccific and rep petitive own n-use production work off services acctivities succh as housew work and thherefore sug ggest that no o adjustmennt is needed.. Converselyy, United States guidellines recomm mend that adjustments a are appliedd (Abrahaam and Macckie, 2005).. Therefore,, due to thesse complexiities it is sugggested thatt every 38

time a w wage rate iss applied thee question should s be assked – ‘doess the qualityy of the servvice produceed match that which woould be provvided by a market m equiivalent servvice?’ If the answer is no, thhen that wagge rate needds to be redu uced. 133. Iff a wage ratee needs to be b quality addjusted baseed on differring levels of o service prrovided

by the m market and households then there is currentlyy little agreeement on hoow best to caarry out this adjuustment (Haamunen et al., a 2012). This T area reqquires furthher research and statisticians, researchhers and eco onomists arre encourageed to experiiment with wage w adjusttments untill they have whhat can be considered c a a sensiblee result, bassed on a set of reasonabble and cleaar as assumpptions. 3.4.11.2 Return n to capita al 134. Estimating th he return to capital (RT TC) is not sttraightforwaard, howeveer, as with taxes

and subbsidies, it is required to ensure thatt the servicees produced d by own-usse productioon work of serviices activitiees are not be under- or over-valuedd comparedd to estimatees made using an output vvaluation (w which implicitly includ des an estimate for RTC C.) One possibility to arrrive at an estim mate of impu uted RTC iss to model it i based on the t amount of RTC reccorded in inndustries or serviices similar to the own--use producction work of o services. 135. U United Kingd dom, for exxample, havee explored estimates e off RTC by appplying a mark-up m

to comppensation off employeess, based on a similar mark-up m obseerved in thee national acccounts for ‘Acttivities of Households H nel’, as follo ows: as employeers of domesstic personn RTC

∗

RTC

136. A An alternativve method, recommend r ded within thhis Guide, is i to apply the t so-calledd capital

servicess methodolo ogy. As withh the markeet productioon, own-use productionn work of seervices requiress capital gooods (durables), thus it is i importantt to include capital servvice flows when w valuingg. Capital seervices consist of the coosts related to the depreeciation of a capital good with a servicce life greateer than one year in each h year of thhe good life and a returnn on the invvested capital. The Perpettual Inventoory Method (PIM) is suuitable for estimating thhese two eleements r of the ccapital services. Howevver, a sufficiiently long time series of investmeents in the relevant consum mer durabless and inform mation aboutt their serviice lives is required r neccessary to apply a the PIM. Inn this proposal, the impputation of capital c serviice flows coonsist to: i) identify i durrables goods (goods with a service liife greater thhan one yeaar (such as household h a appliances, m motor o to gennerate an vehicless and some types of furrniture) andd estimatingg their servicce lives in order estimatee of the dep preciation off these conssumer capitaal goods, annd ii) calcullate a returnn on the investedd capital of these consuumer durablles. This meethodology takes into account a the capital intensityy of the relaated servicees, and arriv ves at a morre appropriaate measure of depreciaation costs. Concerning C the t return too the investted capital, one o needs too make an assumption a on the interest rate to be applied. a Herre, we suggeest using thhe interest raate for goveernment bonnds to reflect rrisks on invvestments. 137. Thoen (1993) accounted d for servicee flows bothh from durabbles and sem mi-durabless goods

using ann opportuniity cost methhod. The market m rate of o return is used u to derivve the serviice flows frrom these capital goods. Then rationale behinnd the use of the opporttunity cost method m is explaained as folllows: if a hoousehold duurable is rennted on the market, m the rental pricee would include depreciatioon ( d ), operating expennses (such as a automobile insurancce, propertyy g to househoold contentss) associatedd with durabble / semi-ddurable goodds k ( insurance applying

39

Ok ), annd a normall rate of retuurn ( r ). “Thhe rate of reeturn cost is the rate of return incluuded in the renttal price or the t investm ment income forgone byy purchasing g the durablle good”. portunity co ost method to t measurin ng capital seervice flowss as 138. Thoen expressed the opp followss: e ks  ( r  d ) S k  O k

wh here Sk is thhe stock of durable / seemi durable good k . 3.4.11.3 Reconciling for ttaxes and ssubsidies 139. A Although ow wn-use produuction workk of servicess is, by natuure, not soldd on the marrket,

and therrefore, taxees on produccts and servvices are gennerally not relevant. r Ho owever, therre are some foorms of taxees and subsiidies that shhould be acccounted for.. Generally,, if a househhold pays taxx or receivees a benefit for f the use or o ownershiip of a prod duct or assett that is usedd in own-use production work of services, s theen part or alll of that taxx burden shoould be realllocated h saatellite accoount. Similaarly, if a bennefit is paid for the direect provisionn of to the household own-use production work of services, s this should be recorded as a subsidy for that b careful thhat the beneefit is actuaally connecteed to produuction. producttion. Countrries should be For insttance, somee countries pay p a benefiit to househholds with chhildren regaardless of whether w that houusehold actuually cares. The issue of o taxes andd subsidies is i covered inn greater deetail during tthe compilaation of the household h satellite s acccount in Chaapter 4. 3.4.11.4 Estima ating the in ntermedia ate consum mption rela ated to own n‐use prod duction work o of servicess 140. Examining household h exxpenditure is i often the best way off recording intermediatte

consum mption relateed to own-uuse production work of services. For F examplee, if a houseehold buys waashing powder then it is i highly lik kely they wiill use it durring the own n-use produuction work off laundry seervices. On this t basis, household h expenditure surveys cann provide esstimates of the leevel of interrmediate coonsumption used in the own-use prroduction work w of servvices. 141. O Other data soources may be necessarry to accuraately estimatte intermed diate consum mption

such as electricity or water connsumption by b househoold appliance. Such dataa sources caan then be usedd in conjunction with hoousehold ex xpenditure data d to split costs relateed to servicees such as household utilitiies. Those costs c can theen be split between b diffferent own--use production p work off services acctivities, genneral leisure or other purposes. 142. Low-level ag ggregations of househoold expenditture may alsso provide the t necessarry splits

to makee accurate estimates off intermediatte consumpption for ow wn-use produ uction workk of servicess activities. Indeed houusehold expeenditure datta may exist to 5-digit Classificatiion of Individuual Consum mption Accoording to Puurpose (COIICOP) levell in some coountries. 143. The annexes in Chapter 4 provide a full list of products th hat are reallo ocated to

intermeediate consu umption. 3.4.11.5 Final considerations when n using thee input valuation 144. Frrom reading g to this poiint, it should d be clear thhat there aree various altternatives too

measuriing own-usee productionn work of services actiivities usingg the input valuation. v Inn additionn, the data sources s mayy vary consiiderably.

40

145. O One positive outcome of this Task Force F guidaance would be that the valuation of o own-

use prodduction worrk of services becomess more wideely practicedd internation nally and implem mented in a consistent c m manner. Thiss in turn woould help to realize the benefits rellated to understanding the value v of ow wn-use produ uction workk of services, while alsoo helping too further developp agreementt on how beest to use thee input valuuation technnique. 146. A Another posiitive outcom me would bee for new reesearch to fo ocus on recoonciling

differennces betweeen the input and output approachess for valuing g own-use production p w work of servicess.

3.44.2 The o output ap pproach 147. The followin ng section describes thee process annd detailed consideratio c ons when appplying

the outpput valuatio on process. It I will outlinne how the valuation caan relate to the input vaaluation techniquue and finissh by drawinng conclusiions about bbest practicee and some limitations and assumpptions. 3.4.22.1 Measu uring the vvolume of o own‐use prroduction work of seervices 148. The first stag ge of the outtput approaach is to estaablish the voolume of unnits produceed. In

the casee of own-use productioon work of services, s exaamples include the num mber of houurs that childrenn are cared for, the num mber of milees driven byy householdds providing g own-use producttion of traveel services work, w or thee number off meals provvided. The Guide G proviides a case stuudy from thee United Kiingdom on their t approaach to measuring a num mber of outpputs on own-use production work of services. s Hoowever, to illlustrate how w the outpuut method works w o how a couuntry mightt measure thhe output off ownthis section providees a brief deescription of use prodduction worrk of childccare servicess. 149. Estimating th he volume of o own-use production p work of chiildcare servvices producced

requiress establishin ng the total number of cared-for – whether paaid or unpaidd. This is thhe relativeely easy partt if countriees produce population p s statistics brooken down by b age. It iss then necessaary to calcullate the num mber hours that t each chhild is receiv ving childcaare for (chilldcare hours reeceived per child ratherr than child dcare hours given g per caaregiver). One O approacch to this is too sum all th he hours whhich childrenn spend in fformal care - by colleccting data froom formal care c instituttions (likelyy to be admiinistrative ddata sourcess such as schhool censuss reports)) - and assuuming that the t remainin ng time is own-use production worrk of childccare servicess. Countriess should alsoo be aware that childreen can be lefft unsupervised, neitheer receivinng formal caare nor ownn-use producction work of childcaree services. Therefore, T a an estimatee of time left unsupervvised needs to t be includded in the caalculation. The T age of the t child is likely to bee a main detterminant inn assessing the amount of time left ft alone. 150. U Using this prrocess, the output o approoach establiishes how many m childreen are lookeed after

first andd then how many hourss of childcaare each chilld received. If in the exxample, twoo childrenn were being looked affter during thhe childcaree giver’s onne hour of ch hildcare theen using the outpput approach this wouldd be consid dered as twoo child hours of childcaare receivedd. That differs ffrom the inpput valuatioon that estab blishes the number n of hours h of ownn-use produuction work off childcare services s proovided by caaregivers, but b not how this time reelates to children themsellves. For exxample, a chhildcare provider may report r caring g for children for 1 houur in a day; however, this does not inndicate how many childdren they weere looking after duringg that time.

41

3.4.22.2 Marke et equivaleent pricing g 151. O Once establisshing the tootal number of hours off own-use prroduction work w of childcare

servicess, they can be b valued by applying an appropriiate market price. For example, e if a child attends a nursery for fo 4 hours of o the day, how h much would w that time t cost peer hour? If a nanny w chargge per child and per is contrracted to loook after chilldren, what is the rate thhat nanny would hour? 152. W When makin ng this choicce it is impoortant to reccognize whaat costs are factored f intto the

market price. In thee example oof a nurseryy, then a smaall element of the cost per child coontains e or o renting thhe building. In the exam mple of a naanny, overheaads such as paying for electricity the wagge costs are likely to reppresent a hiigher proporrtion of the price as thee nanny is only o likely too be lookingg after a couuple of childdren at a tim me whereas a nursery assistant a maay be lookingg after more children att any one tim me. Given that prroviders of own-use production work of childdcare services to childreen are 153. G most likkely to do soo when theyy are at hom me, the wagees of a live--in-nanny loooks like thee nearest market equuivalent. Hoowever, careeful consideeration shouuld dictate th hese decisioons. To l out the componentts that are in ncluded in a market priice and illustratte the point,, Table 3.2 lays shows hhow each prrice applies to the two examples of a nanny annd a nurseryy. Table 3.2 o valu uation and their relattionship to gross Compoonents capttured whilee using the output value aadded and output o

Com mponent

Im mputed compeensation for laboour input

+ Grosss Operating S Surplus

+ othher taxes subsidies on prooduction

= Grross Value A Added

Descrip ption in the con ntext of own--use productioon work of serrvices The market m equivalent cost of the labour invoolved in the productionn of ownuse producction work of services.. (Included in market equivalent e pricce) The return to capital of househoold assets and the connsumption of capital (Included ( in market equivalent e pricce) The valuee of taxes and subsiddies based on market equivalent e serviices (Included in market equivalennt price) The sum vaalue of the above com mponents (Included in market equivalennt price)

Example 1 Market prrice chargeed for a livee-in-nannyy from a naanny agenccy per ch hild hour

Example 2 Marrket price charged c by a nursery peer child hour

The majoriity of the pricee charged by a live-in-nannny would go tow wards their wages and pension p contributionss/benefits wheere appplicable

Normaally a smaller proportion p of the price p per childd would go towaards the wagees of the nurseryy staff and theeir pension conntributions/beenefits

An element of the price thhat the nanny charges c will go o back to the nanny n agency as p profit

An ellement of the price p per child may m be counteed as profit if run n by a private company c

An element of o the price allso covers any taaxes or subsiddies for which the nanny agencyy is liable.

An eleement of the price p also coverss any taxes or subsidies for whiich the nurserry is liable.

Gross Value Added of thhe nannyy agency Intermediate consumptionn of the nannny agency

Grosss Value Addeed of the nursery Interm mediate consum mption of the nurseryy

42

Com mponent

Descrip ption in the con ntext of own--use productioon work of serrvices

Example 1 Market prrice chargeed for a livee-in-nannyy from a naanny agenccy per ch hild hour

Example 2 Marrket price charged c by a nursery peer child hour

+ Inttermediate Connsumption

The value of goods and servicces which are consum med in the productionn of ownuse producction work of servvices (Included in market equivalennt price)

A small part of the price will w cover the costs of the nannny agency utillities and otheer goods and serrvices consum med in the provisiion of the nannny serrvice.

Given that all the chhildren are cared for on the preemises of the nursery, n interm mediate consum mption costs arre likely to represent a higher proportion p of the price chargedd per child hour.

= Output

Sum of o all compoonents (and is what w is calculateed in its entiretyy when multiplyying the volume off units of a good or serrvice with the respecttive price)

Total outpuut of the nannyy aggency = The numberr of children th he nanny looks l after x the numbeer of hours thee children arre looked afterr x the price per child hour sett by the nannny agency

Totall output of thee nursery = The number n of children the nursery n looks aafter x the number of hoours the children are lookeed after x the price per child hhour set by the nurseryy

3.4.22.3 Consid dering how w best to va alue – marrket equiva alent pricin ng or efficiient markeet pricing?? 154. The market rate r at whichh own-use production p w work of serrvices is valuued is likelyy to

providee a high valu uation in praactice. Thiss high valuaation aims to o reflect thee worth of thhat activityy regardless of whether it would bee feasible too create a market servicce big enouggh to carry ouut that activvity. Therefoore, taking this t approacch does not take into acccount affordabbility. Whetther that is an a issue or not n dependss on how onne approachhes the valuation of own-use production work of services s and d for which purpose p shee has in min nd for the finnal valuatioon. 155. Iff asking the question – ‘how much h would ownn-use produuction work of services be

worth iff it were all contracted out to the market?’ m theen it may bee sensible to o make the valuatioon using maarket prices which wouuld be afforddable for thee majority of o those houuseholds providinng the own--use producction work of o services. For examplle, if all own n-use produuction work off childcare services s were contracteed to the maarket, then it i may be more m likely thhat childrenn are cared--for in groupps, perhaps 20 at a timee and looked after by one o adult. It would be less likely that each e individdual househ hold with chhildren woulld employ a live-in nannny. 156. H However, thee drawback here is thatt the value of o the childccare may bee understateed. An

alternattive perspecctive would suggest thaat just becauuse it is not affordable to t contract out o the work foor some, doees not necesssarily dimiinish the vallue that houusehold gainns from it annd so one migght question n whether market m feasibbility shouldd feature ass a consideraation when choosinng market prrices. 157. B Beyond feasiibility, whenn considerinng if a markket price is suitable s to value v a speccific

type of own-use prroduction quuality, then assessmentts around qu uality of serrvice are reqquired. t If a pareent at homee schools theeir childrenn but does noot have the knowledge to explain the syllabuss effectivelyy, is it approopriate to vaalue the ow wn-use produuction workk of servicess they are provviding at thee market hoourly rate fo or private lessons? Quaality adjustm ment is required in 43

cases w where a markket service is i higher orr lower valuue to own-usse productioon work of servicess. 158. O Once a suitabble market pprice has beeen found thhen it can bee applied too the units of own-

use prodduction worrk of services to obtainn the total ouutput valuattion, follow wing the basiic formulaa:









-

















3.4.22.4 Estima ating interrmediate cconsumptio on and gro oss value a added 159. To get an esttimate of thee GVA from m own-use production p work of serrvices usingg the

output vvaluation appproach, it is i again neccessary to prroduce estim mates of intermediate consum mption (as deescribed in the input vaaluation secction). The process p is iddentical for both input annd output vaaluation techniques (seee section 3..4.1.4). The value of inntermediatioon consum mption is dedducted from m the value of o total outpput to derivee GVA.

3.44.3 Comp parison b between tthe outpu ut and in nput apprroaches 160. C Countries wiill often relyy on their tim me use dataa for different purposess. This can result r in

the highher chance that t an outpput valuation n will require further ex xpensive daata collectioon and thereforre make thee input valuaation more appealing a (H Hamunen et al., 2012).. The outputt-based methodd and the inpput-based method m are both b theoretiically viablee ways to estimate ownn-use producttion work off services. This T sectionn will summ marise the addvantages annd disadvanntages of each method. 161. Even if the elements of the t two appproaches weere almost th he same, it cannot c be

concludded that they y would leaad to the sam me result. Inn the outputt approach, the t starting--point is the marrket value of the produccts. The cossts of produuction (interm mediate connsumption, consum mption of fixxed capital, other taxes on production minus subsidies) s arre subsequeently subtractted, to arrivve at the balaancing item m “mixed inccome”, whiich consists of remunerration for the llabour inpu ut and a net return r on caapital investted or net op perating surrplus. 162. In n the input approach, a ass previously y discussed,, an imputed d estimate of o return to capital

(net of ddepreciation n) is added to the sum of the valuee of labour plus p the con nsumption of o capital and a other taaxes less subbsidies on production p t obtain ann estimate off GVA. By to subsequuently addinng intermeddiate consum mption, one arrives at an a estimate of o total outpput. 163. H Harvey and Mukhopadh M hyay (2005)) presented output-base o ed estimatess for Canadaa for

1992. T The methodoology accouunts for com mpatibility with w the SNA by excludding certainn activitiees that are already a incluuded in the SNA GDP..7 Later this year, Uniteed Kingdom m will also havve estimatess for own-uuse productio on work of services forr year 2014 using both the input annd the outpu ut valuationn techniquess. It will be interesting to t see how these estim mates depart from f one an nother.

7

For exaample, the userr cost of dwellling for each activity was subtracted s from m the value off output becauuse they are alreaddy accounted for in GDP. Similarly, S certaain outputs suuch as garden vegetables aree already incluuded in GDP andd as such, weree not added ass an output.

44

Table 3.3 Compaarison of input and ou utput approoaches for Canada, C 19992

Source: S Statistics Canaada (1995); Harvey H and Muukhopadhyay (2005); Gee (22015).

164. Table 3.3 sh hows a com mparison of estimates using u the ouutput appro oach with estimates

using vvarious alterrnative inpuut output appproaches for f the yearr 1992. Thee replacemeent costgeneralist input method m recom mmended by b Statisticss Canada inncludes volu unteer workk and is p cent low wer than thee comparablle value of unpaid u houssehold serviice work approxiimately 39 per using thhe output-baased methodd (326.9 billlion versus 234.5 billio on). 165. Fiitzgerald an nd Wicks (1990) arguedd that the diifference beetween the two t approacches is

mainly a productivvity issue: iff households were moree productivee than firmss, then the market m w underestimate thhe householld output, annd vice verssa. Howeverr, it is moree likely wages would that firm ms are moree productivee than houseeholds for most m activitiies because of their acccess to greater stocks of phhysical capiital. Furtherrmore, estim mates foundd using the output o methhod b higher because theyy include retturns to otheer factors thhan solely laabour. This should be justifiess why GOS should be included i in the input appproach inpput. 166. B Both the outp put and inpuut approachh have advanntages and shortcoming s gs. In theoryy, the

preferennce betweenn the outputt and input approaches a is often sett to the form mer method. The main reeason for thiis is that thee SNA uses the output method m when computin ng market producttion. Thereffore, it givess possibilities for making direct coomparisons with the activities in markket productioon. The outtput approacch also makkes the meassurement off the producctivity of own--use producction work of o services possible, p and guaranteees the inclussion of all thhe inputs, such as labo our, capital and raw maaterials (Follbre, 2008).. Moreover,, by measuring the ds the probllem of simu ultaneous acctivities in tiime-use output ddirectly, thee output appproach avoid surveyss.8 167. H However, thee output appproach also presents seeveral methoodological issues. i Estim mating

both thee volume annd the valuee of the outpputs requires defining and a dividingg activities into i categories with subbstantively different d ouutputs. The level l of disaaggregation n performedd at this 8

Howeveer, treating eaach output sepaarately, e.g., the t care for eaach child and, at the same time, allocatingg the full working time to each of o the simultanneous activitiees, may make the returns to o labour deriveed from the calculatioons difficult to o interpret. Thhe return to labbour by activiity can then bee much lower in the case off activitiess that are oftenn performed siimultaneouslyy. In these casees, a low returrn to labour do oes not necesssarily mean low w productivityy. To overcom me this issue, one o may want to split inputss relating to siimultaneous output. o

45

stage is frequently limited by data availabbility and may m heavily influence thhe results T few cateegories wouuld result inn estimates that t heavily depend upoon the (Eurostat, 2003). Too o the markeet. It is alsoo output vvalue and laack realisticc comparabiility with the services on sometim mes difficullt to find a representativve output too each activiity (e.g., passive childccare).9 168. The aggregattion of activ vities shouldd also take into i accounnt the difficuulties relatedd to

finding the cost of the nearest market equuivalent. Forr example, most m peoplee cooking a meal n producee the same quality q of prroduct as a Michelin-sta M arred chef. would not 169. A As is the casee with the innput valuatiion approacch, another problem p ariises when chhoosing

betweenn a number of similar alternatives, a , such as hirring a baby sitter or usiing a day caare service.. Either alteernative couuld be equallly viable buut would invvolve differeent prices on o the market,, resulting inn differing estimates e thhat could heeavily influeence the finaal result. Moreovver, the valuue of the serrvices can be b measuredd at either baasic prices - before taxes and subsidiees - or markket prices. Most M studiess use the lattter approachh (Harvey and a Mukhoppadhyay, 20005). 170. R Researchers have spokenn for the ouutput method and madee proposals for f practicaal

solutionns to data gaathering andd calculations (Ironmonnger and Sooupourmas, 2009; Harvvey and Mukhoppadhyay, 19996). Abrahham and Maackie (2005)) recommen nded that “n nonmarket accounts a should m measure thee value and quantity off outputs inddependently y from the value v and quuantity of inputts wheneverr feasible.” 171. The limitatio ons of the ouutput approaach mentionned above imply that a well-manaaged

input appproach would be a preeferable metthod (Abrahham and Maackie, 2005). Most exeercises have appplied this laatter approaach, which also a impliess that its streengths and weaknesses w s are now weell recogniseed and docuumented. Thhe availability of time use u data hass made it reelatively easy to value time spent on ow wn-use prodduction worrk of servicees by a suitaable wage or me use data, few additioonal data soources are neeeded (natioonal accounnts and wages. Besides tim n official sttatistics in many m countrries for otheer wage daata), which are alreadyy available in purposees. Howeverr, the results depend heeavily on thhe choice off wage rate working w tim me conceptt as a basis for f the hourrly wages (aactual workking hours, paid p hours).. Comparisoons betweenn national studies may not tell much of the reeal value of own-use prroduction work of servicess in the coun ntries in question whenn those resuults are baseed on differeent assumpttions and metthodologiess.10 Moreover, the inpu ut approach raises the isssue of how w to deal witth secondaary activitiees: should thhe researcheer only conssider primarry activities, or should they count annd include simultaneou s us activitiess? Chapter 8 discusses this t in moree detail, andd the Guide rrecommends the issue as a an area warranting w f further reseaarch.

9

Fitzgeraald and Wickss (1990) accouunted for this issue by meassuring the outp put in hours and a estimatingg the cost that it woould take to hiire someone too come to the house and perrform the actiivity. 10 A careful comparisoon was made between b Germ many and Finlaand. Originally, Germany used u net wagess and Finland ggross wages. When W the wagge concept was made the sam me, the differrence in the vaalues narrowedd clearly and the reest of the diffe ference could be b easily explained (Rüger and Varjonenn, 2008).

46

Chap pter 4

The H Househ hold Sattellite A Accoun nt

4.1 In ntroducction to the hou usehold satellite account 172. This chapter concerns th he measurem ment of ownn-use produuction work of services in a

satellitee accounting g system. According A to o the SNA, ssatellite acccounts are exxtremely usseful for researchh purposes, by allowingg more focuus for analyysis on particular sectorrs of the ecoonomy. There are a two standard types of o satellite account. a Thhe first does not extend the SNA producttion boundaary, but focuuses in moree detail on a specific seector or induustry, proviiding more deetail than innternational standards require. r For instance, a tourism sattellite accouunt providees an analytiical framew work for morre detailed analysis a of the demandd and supplyy of tourism m-related prooducts and industries i – all within the t SNA prooduction booundary. Thhe second type of sateellite accounnt goes a steep further annd extends the boundarries of prodduction, mption, or caapital formaation beyondd the conveentional SNA A definitionns. consum h seervice workk should be excluded frrom the 173. The SNA staates that whiile unpaid household SNA prroduction bo oundary, it is possible to t include thhem within n a satellite account. a Thhis chapter describes a methodoloogy for doinng exactly thhis: constru ucting a household satelllite ge is to adappt slightly thhe traditionaal supply annd use accountt in two maiin stages. The first stag framew work – enlargging it withh observed data d accordiing to TUSss, to arrive at a a more inntegrated accountting of timee use in physsical units (hours). ( Thee second staage actually values and fully integrattes unpaid household h seervice work k into the SN NA. In this framework, the inclusiion of own-use production work of services s - whhich is currrently out off the scope of o official national n accountts estimates - extends thhe production boundarry of the 20008 SNA. Thhe envisaged framew work deals with w all the changes, c inccluding the reallocation n of househo old final consum mption expennditure to inntermediate consumptioon, to arrivee at a fully consistent c recordinng of unpaidd householdd service woork. 174. B Before goingg into detail of preparinng a househoold satellitee account, itt is worth

recogniising that the restricted production n boundary defined d aboove already includes i som me own-use provision of goods annd services by househoolds. Examp ples are, butt not limitedd to: a) b) c) d)

ose occupyinng the dwellling they ow wn Housing seervices prodduced by tho Agriculturaal products retained r by farmers Household services prooduced by employing e p staff. paid welling Dwellings, or extensioons to the dw

4.2 Develop D ing a ho ousehold d satelliite account 4.22.1 A sim mplified ssatellite a account ffor own‐u use prod duction w work of serrvices 175. The first stag ge of develooping a full household satellite s acccount for ow wn-use prodduction

work off services iss to add furtther extensioons and breeakdowns too the traditioonal supply and use framew work of the national n acccounts. The satellite acccount propoosed in this section does not require the extensioon of the prroduction bo oundary andd related im mputations of o output andd value n Chapter 3. Its compilaation is limiited to the addition a of innformation from added ddiscussed in 47

time-usse surveys – the total nuumber of hoours devotedd to own-usse productioon work of services s ucation and leisure. Furrthermore, it i provides more m detaileed breakdow wns of and paidd work, edu activitiees, enablingg a comparisson betweenn the value of own-use productionn work of seervices with theeir counterpparts in the market. m 176. The first exteension relatees to adding g data on tim me spent onn various ho ousehold acttivities,

thus suppplementingg data on (ppaid) employ yment. Tim me use surveeys is the maain source of o this requiredd data, altho ough not alw ways in the preferred detail. d In thee example presented p in this chapter, own-use production p w work of servvices is brokken down in nto the main n activities defined in Chappter 2. 177. The second extension e reelates to add ding more detailed d breaakdowns off industries that t are

substituutes for ownn-use producction work of services.. Doing so, one could monitor m andd analysee shifts betw ween these services, andd own-use production p o services work. of w In thiis respect,, one could think of acttivities and services rellated to restaurants, tak king care off childrenn, elderly, and a other peeople within n or outside the same hoousehold, personal trannsport, and cleaaning and general g mainntenance off dwellings. Table 4.1 highlights h th he own-use producttion work off services, and a the marrket counterpparts that shhould be inccluded in thhe proposeed supply annd use tablees.

48

Table 4.1 Own-use production work of services activities, and their market counterparts Sub activity Own-use production work of services

Central Product Classification Version 2.1 Group

Description

Class

International Standard Industrial Classification of All Economic Activities (ISIC), Rev. 4 Subclass Description

Class

activity

Housing

Provision of housing

8129

Cleaning

853

Cleaning services

8531 8532 8533 8534

85310 85320 85330 85340

Disinfecting and exterminating services Window cleaning services General cleaning services Specialized cleaning services

Gardening

859

Other support services

8597

85970

Landscape care and maintenance services

8129 8121 8129 8130

Repair

Nutrition

Plan meals and shopping

872

980

Repair services of other

Domestic services

9523 9529

8721

87210

Repair services of footwear and leather goods

8722

87220

Repair services of watches, clocks and jewellery

9529

8723

87230

Repair services of garments and household textiles

9524

8724

87240

Repair services of furniture

9529 (3313)

8729

87290

Maintenance and repair services of other goods

9800

98000

Domestic services

49

9700

Prepare, serve and wash up meals

Clothing

Care

980

Domestic services

9800

98000

Domestic services

5610

633

Food serving services

6331

63310

Meal serving services with full restaurant services

5610

6332

63320

5621

6339

63391 63392

Meal serving services with limited services Event catering services Contract food services for transportation operators

63393 63399

Other contract food services Other food serving services

5610

5629 5629

Buy clothing or material to make clothing

980

Domestic services

9800

98000

Domestic services

Laundry washing and ironing

971

Washing, cleaning and dyeing services

9711

97110

Coin-operated laundry services

9601

9712

97120

Dry-cleaning services (including fur product cleaning services)

9601

9713 9714 9715

97130 97140 97150

Other textile cleaning services Pressing services Dyeing and colouring services

9601 9601 8890

Child care

935

Other social services without accommodation

9351

93510

Child day-care services

8510

921

Pre-primary education services Primary education services Secondary education services

9210

92100

Pre-primary education services

8510

9220 9231

92200 92310

Primary education services Lower secondary education services, general

8521 8522

922 923

50

Adult care

9232

92320

Lower secondary education services, technical and vocational

8521

9233

92330

8522

9234

92340

Upper secondary education services, general Upper secondary education services, technical and vocational

8730

932

Residential care services for the elderly and disabled

9322

93222

Residential care services for young disabled persons

8720

933

Other social services with accommodation

9330

93301

Residential care services for children suffering from mental retardation, mental health illnesses or substance abuse

8790

93302

Other social services with accommodation for children

8810

934

Social services without accommodation for the elderly and disabled

9349

93492

Other social services without accommodation for disabled children

8710

932

Residential care services for the elderly and disabled

9321

93210

Residential health-care services other than by hospitals

8730

9322

93221 93223

8730 8720

9330

93303

Residential care services for the elderly Residential care services for disabled adults Residential care services for adults suffering from mental retardation, mental health illnesses or substance abuse

933

Other social services with accommodation

51

8790

93304

Other social services with accommodation for adults

8810

93411

Vocational rehabilitation services for persons with disabilities

8890

934

Transport

Social services without accommodation for the elderly and disabled

9341

93412

Vocational rehabilitation services for unemployed persons

8810

93491

Other social services without accommodation for the elderly

9609

Pet care

861

Support and operation services to agriculture, hunting, forestry and fishing

8612

86129

Other animal husbandry services

4921

Performing transportation services on own account

641

Local transport and sightseeing transportation services of passengers

6411

64111

Urban and suburban railway transport services of passengers

4921

64112

Urban and suburban scheduled road transport services of passengers

4921

64113

Mixed mode urban and suburban transportation services of passengers

4922

64114

Local special-purpose scheduled road transport services of passengers

4922

64115 64116

Taxi services Rental services of passenger cars with operator

4922 4922

64117

Road transport services of passengers by man- or animal-drawn vehicles

4922

64118 64119

Local bus and coach charter services Other land transportation services of passengers, n.e.c.

4922 5021

64121

Inland water transport services of passengers by ferries

5021

64122

Inland water transport services of passengers on cruises

5021

6412

52

64129

Other inland water transport services of passengers

4911

64131 64132

Sightseeing services by rail Sightseeing services by land, except rail

4922 5011 5021

6421

64133 64134 64210

Sightseeing services by water Sightseeing services by air Interurban railway transport services of passengers

5110 4911 4922

6422

64221

Interurban scheduled road transport services of passengers

4922

64222

Interurban special-purpose scheduled road transport services of passengers

4922

64223

Long-distance bus and coach charter services

5011

64231

Coastal and transoceanic water transport services of passengers by ferries

5011

64232

Coastal and transoceanic water transport services of passengers on cruise ships

5011

64239

Other coastal and transoceanic water transport services of passengers

5110

64241

Domestic scheduled air transport services of passengers

5110

64242

Domestic non-scheduled air transport services of passengers

5110

64243

International scheduled air transport services of passengers

6413

642

Long-distance transport services of passengers

6423

6424

53

178. The distinctio on betweenn time spent on own-usee productionn work of services actiivities

and tim me spent on leisure l mayy not be thatt clear cut. Some S will consider garrdening as a drag, while others will view v this acttivity as a way w to spendd leisure tim me. Similarlyy, “many viiew oyable leisuure activity,, not a choree that is easily cookingg - and thenn eating – ass a most enjo substituutable with a meal in a fast food reestaurant” (S Stiglitz, Sen n and Fitousssi, 2009). A similar line of reasoning couldd be applied d to taking care c of childdren. This Guide G propooses to p prooblems withh the distincction between own-usee productionn work simply ignore the potential t allocatioon of time chosen of serviices and leissure time, thhus followinng the perceeption and the by the hhouseholds. Solving thiis problem would w requuire further research r andd much morre time than has been availlable for preeparing thiss report. 179. Table 4.2 pro ovides an illlustrative exxample of how h the prop posed (exteended) use taable

should look. l Tablee 4.2 is a conncise versio on of the prooposed full table locateed in Annexx 4.4. For insttance, it onlly highlightss two own-uuse producttion work off services acctivities, annd a much reeduced list of o products. However, it illustrates how the tiime spent onn various acctivities has been included as additionaal rows at th he bottom of o the table. A further sttep in develloping o having moore detailed breakdownns for some of the the simpplified satelllite accounnts relates to productts, the rows in the use table, t whichh are relevannt for own-uuse producttion of serviices work. This T does no ot only relatte to the inteermediate innputs, such as those forr the preparration of meals, but b also to consumer c duurables such h as transpoort vehicles,, and equipm ment for preeparing meals. Such S inform mation woulld also consstitute imporrtant buildinng blocks fo or the comppilation of a fulll-fledged saatellite account for own n-use production work of services with an exttended producttion boundaary. n the core acccounts, houusehold finaal consumpption expend diture (HHF FCE) is cateegorized 180. In by prodducts or by purpose p (CP PA or COIC COP classifiication). Ho owever, in th he Househoold Satellitee Accounts frameworkk, some expeenditure on goods and services is actually a intermeediate consu umption reqquired for ow wn-use prodduction worrk of servicees. For instaance, househoolds consum me some purrchased foood without further f preparation - suuch as crispss and snacks - and shouldd remain ass HHFCE. However, H soome food, foor instance flour f and vegetabbles are mucch more likeely to form the inputs of o preparing g a meal, an nd are thereffore intermeediate consu umption in own-use o prooduction woork of food services. Inn other wordds, goods cconsumed or transformed during thhe productioon process are a reconsid dered as intermeediate consu umption. In addition, thhe household satellite account a shou uld treat houusehold durablees as fixed assets, a and thherefore thee consumptiion of fixedd capital on household durables d used forr production n are input costs. c The first f simpliffied satellitee account, do oes not alteer the SNA prroduction bo oundary, annd as such, does d not maake the HHF FCE transfoormations deescribed above. 181. A All in all, one would thuus arrive at an a extendedd use table, as depicted d in Table 4..2, and

elaboratted upon in more detail in Annex 4.4. Table 4.2 4 shows thhat the onlyy informatioon relatingg to own-usee productionn work of seervices recoorded are th he number of o hours. Forr instancee, in this example, therre were a tottal of 32,737 million annd 1,379 miillion hours of own-use production work of trransport and d adult caree services reespectively. Importantlyy, Table i extend thee productionn boundary. However, already 4.2 does not value these hourss, nor does it mparison of time t spent performing p some usseful analysses are possible regardiing the com ownuse prodduction worrk of services, and theiir market coounterparts. 182. O Of course, co ountries which have op pted to meassure own-usse productioon work of services s

using thhe output appproach willl not have in nformation on the hourrs worked inn own-use producttion work off services. As A such, theere will be little l for these countriess to add to Table T 4.2 asidde from the informationn already coontained witthin their naational suppply and use tables. 54

183. Iff compiled over o a longeer period, saay every fivve years, Tabble 4.2 coulld provide valuable v

insightss into shifts between ow wn-use prodduction of services worrk and the purchase p of similar servicess on the marrket. The annalysis of shhifts in hourrs spent on paid p employyment and hours h spent onn own-use production p w work of servvices couldd be supplem mented by a more detaiiled analysiss of changess in consum mption behav viour, for exxample shiffts in the puurchase of products for prepparing meals at home too purchasin ng meals at restaurants, r etc. Whatever the casee, the data in tthis type off satellite tabble would constitute c ann indispensaable elemennt in produciing a satellitee account: extending thhe productioon boundaryy by includinng monetary y estimates of own-use production work of services. s Th his is the toppic of the neext section.

55

Human health and social work activities

Of which: Residential care activities

Own-use production work of adult care services

Total intermediate uses

Final consumption expenditure by households

Gross capital formation

Total exports

Total final uses at purchasers' prices

Total use at purchasers' prices

Agriculture, forestry and fishery products Ores and minerals; electricity, gas and water

0.0 1.7 0.2 -

-

0.0 2.1 2.1 -

0.0 0.6 0.6 -

-

14.0 86.0 46.7 -

14.2 48.4 7.3 14.5 25.9 95.2 71.4

1.0 -0.6 0.8 -

2.1 12.5 14.7 -

17.3 60.3 110.6 -

31.3 146.2 157.3 -

of which: Water supply and miscellaneous services relating to the dwelling of which: Electricity, gas and other fuels of which: Operation of personal transport equipment Food products, beverages and tobacco; textiles, apparel and leather products of which: Food products for the preparation of home meals … Other transportable goods, except metal products, machinery and equipment of which: Glassware, tableware and household utensils

120.2 -

4.0 -

1.0 -

-

18.0 -

5.3 -

-

252.2 -

125.5 0.6 1.0

32.3 -

137.8 -

307.1 -

559.3 -

of which: Tools and equipment for house and gardens … Metal products, machinery and equipment of which: Household appliances

18.7 2.0 -

1.3 2.1 -

0.3 0.5 -

-

0.5 0.8 -

0.1 0.2 -

-

31.4 89.5 -

36.8 5.8 30.2 1.3 1.2

19.2 0.6 102.6 -

46.7 2.1 -

102.7 106.1 -

134.1 195.5 -

of which: Transport equipment Constructions and construction services of which: Maintenance and repair of the dwelling …. Own-use production work of clothing services Own-use production work of travel services

-

-

-

-

-

-

-

-

-

-

-

-

-

Own-use production work of meal services Own-use production work of housing services … Total

228.5

64.2

15.9

-

56.5

16.6

-

844.7

1766.7

2845.5

81.9 12.5 19.1 23.3 23.3 136.7 365.2 5,004 -

37.6 4.0 10.0 7.5 7.5 59.1 123.4 2,173 -

6.5 8.2 2.9 2.2 2.2 19.8 35.7 913 -

32,737 -

68.2 2.4 3.6 18.1 18.1 92.2 148.8 6,154 -

26.9 8.2 1.5 7.4 7.4 43.9 60.5 1,127 -

-

1078.8 Total 674.5 52.6 187.9 364.0 364.0 1279.1 2357.9 Total hours 43,207 14,423 104,925 118,203 140,379

Compensation of employees Other taxes on production minus other subsidies on production

-

-

Consumption of fixed capital Operating surplus and mixed income, net Return to capital Imputed comp for labour to own-use production work of services Value added, gross Output million hours Hours worked in paid employment Hours worked on education and training Hours worked in own-use production work of services Leisure time Other activities n.e.c.

1,379 -

-

…

Own-use production work of travel services

0.1 6.7 0.6 -

£billions

…

Of which: Passenger land transport

9.7 17.9 15.8 -

Manufacturing

Transport and storage

Table 4.2 Simplified use table at purchasers' prices (excluding extension of the production boundary)

226.9 383.7 -

-

* Please note that the sub classification of COICOP-groups is only an approximation, for illustrative purposes. Not the whole COICOP (sub)group may fall within the perimeters of the main heading of the use table. 56

4.22.2 A Satellite Acccount forr own‐use e producction worrk of serv vices nded Prod duction B Boundary y with an Exten 184. This section further elab borates Tablle 4.2 by inccluding the own-use prroduction work w of

servicess, over and beyond b the services thaat are alreaddy includedd in the SNA A, such as seervices from ow wner-occupied housingg and the prooduction off domestic and a personall services byy employying paid do omestic stafff. The varioous sets of changes in th he recordingg and the vaaluation of own--use producction of servvices work are a discusseed. Subsequently, this section s details the impact on traditionnal GDP andd other maccro-economiic indicators. Table 4.33 illustrates a wing on the same s numerrical examp ple providedd in simplifiied version of the final table, draw Table 44.2. Annex 4.5 4 providess the table inn its entiretyy. 185. The first step p in the proccess is to ch hange the reecording of the t items in n final consuumption

expendiiture of hou useholds thaat are used as a intermediiate consum mption in thee own-use producttion work off services. As A noted shhortly, this pprocess inclu udes shiftin ng relevant items i away frrom the colu umn represeenting final consumptioon expenditture of housseholds to intermeediate consu umption in the t columnss of the resppective activvities. The first-order f im mpact is a lowerring of GDP P. However,, later on, thhis will be compensated c d by the addditional outpput of own-use production work of services. s Th his is calculaated as the sum s of: inteermediate mption, otherr taxes less other subsidies on prodduction, connsumption of o fixed cappital or consum depreciation, impu uted “mixed income” foor the time spent s on ow wn-use produ uction workk of e of servicess activities, and imputeed return to capital. Thee following sections wiill discuss each these addditional iteems in turn. 4.2.2.1 Estimatio on of interrmediate co onsumptio on and gro oss fixed ca apital form mation 186. The househo old satellite account exttends the production off the SNA, and a recogniises

own-use production work of services s as activities a in their own right. r As a result r houseehold d into three parts: intermediaate consumpption, final coonsumption expendituree needs is divided acquisittion less dissposals of fiixed assets, and final coonsumption n of goods and a services. The SNA clarifies the boundary b linne between fixed assetss and interm mediate consumption. Expendditures on duurable produucer goods that are small, inexpennsive and ussed to perforrm relativeely simple opperations may m be treateed as interm mediate conssumption when w such expendiitures are reegular and small s compaared with exxpenditures on machineery and equuipment. Examplles of such goods g are hhand tools suuch as sawss, spades, kn nives, axes, hammers, screwdrrivers, and so s on. However, countrries may treeat tools as fixed f assetss where theyy accountt for a significant part of o the stockk of produceers’ durable goods (SNA A 2008, 6.2225). Fixed capital in households is an importaant factor in understand ding changes in the usehold. producttivity of hou 187. A Annex 4.1 prrovides a lisst of produccts, and acts as a guide for reallocaating from

househoold final connsumption expenditure e e to intermediate consuumption, by each speciffic activityy. This allocation is larggely based on o the workk undertakenn in the Uniited Kingdoom by 11 Hollow way et al. (20002). Thee Guide reco ognises thatt productionn processes, and the suppply of certain products wiill differ byy country. However, H thee Guide recoommends th hat all counntries t the allocaations descrribed here as a best as poossible. Thiss will ensurre consistenccy and adhere to 11

Househhold satellite account a (expeerimental) metthodology, Suue Holloway, Sandra S Short and a Sarah Tam mplin. Office foor National Staatistics, Unitedd Kingdom, 2002. 2

57

comparrability acrooss countriess. Of coursee, it is possiible that som me goods orr services caan be used forr final consu umption, inntermediate consumptioon and fixedd capital forrmation for ownuse prodduction worrk of services. In these cases, counntries will need n to assig gn a quota allotmeent for each type. For innstance, 60% % of fruit iss final consu umption, annd 40% for intermeediate consu umption. 188. In n respect off travel serviices, the mo ost significaant candidattes to break out are petrrol,

regular maintenancce and (purcchased) repaair services. In this casse however, one cannott mount of thee relevant prroducts to thhe productioon of own-uuse production allocatee the full am work off services, as a a significaant part of the t transporrt services relates to paid employm ment and leisure. One could possibly coompile moree detailed esstimates of the various categories based v purpposes. For on transsport statistiics coveringg data on kiilometres traavelled for various instancee, in the Un nited Kingdoom, the Nattional Traveel Survey prrovides infoormation on the numberr of miles travelled in private p vehiccles by purppose of trip.. The propoortion of milles travelleed on trips categorised as a own-use productionn work of serrvices are used u to deterrmine the amoount of petrool expendituure that shoould be conssidered as in ntermediatee consumption. 189. In n the case off repair andd maintenannce of consuumer durables and dwelllings, especcially

the intermediate co onsumption for the purp pose of “doo-it-yourselff” activities related to q signifi ficant. Here,, one needs to make a distinction d between b maj ajor dwellinngs may be quite renovattions, whichh are typicallly recordedd as part of investments i s, and regular maintenaance and small reepairs. In th he latter casee, national accounts a maake a distincction betweeen “… morre substanntial repairs,, such as re--plastering walls w or reppairing roofss, carried ouut by ownerrs, (which)) are essentiially intermediate inputt into the prroduction off housing seervices …” (2008 SNA, § 6.36), and minor repaiirs which arre typically done by tennants. In thee current SN NA, ype of maintenance woould end up as intermeddiate intermeediate goodss used for thhe former ty consum mption of ho ousing servicces, whereaas goods useed in the lattter type aree recorded as a final consum mption expennditure. Theerefore, twoo adjustmennts are required: moving g part from intermeediate consu umption of housing h servvices, and m moving partt of final con nsumption expendiitures. 190. A Another com mplication iss that not alll relevant gooods may actually be used u in the

producttion of own--use producction work of o services as, a for exam mple, a hired d professionnal may be respoonsible for some of thee purchased goods. Givven that it iss quite difficcult to disenntangle the relevant transacctions in thee SNA, Tab ble 4.2 and Table T 4.3 make m no allowance for these t goods. 191. W When it com mes to the distinction off consumer durables, d A Annex 4.3 prresents the

productts, service liife, and actiivities that they t should be allocated to. This iss based on previous p work unndertaken by b Eurostat (2003) ( whicch in turn leeans heavily y on United Kingdom’ss househoold satellitee account (2002). The liist includes COICOP-items such as a 05.3 - Hoousehold appliances; 05.4 - Glassware, G tableware and a househoold utensils;; 05.5 - Too ols and equippment den. A probllem in relatiion to this categorisatio c on is that sig gnificant onne-off for house and gard mple fully-eequipped kitchens, mayy be recordeed as a non--distinguishhable purchasses, for exam part of ppurchases of o dwellingss. Furthermo ore, when reenting a dw welling, the use u of thesee appliances may be included, as a part of thee rentals paid, as well. The other important caategory bles concernns transport equipment (item 07.1), for which the same pooint on of consuumer durab the parttial allocatioon, as discussed above,, is relevantt. 4.2.2.2 Estimatio on of consu umption off fixed cap pital and re eturn on in nvested cap pital 192. The second step s is a more complicaated one. Affter recordin ng consumeer durables used u in

the prodduction of own-use o prooduction woork of servicces, the con nsumption of fixed capiital is 58

accountted for in thhe activities in which thhese consum mer durabless are used. The T shift froom consum mption to invvestment dooes not affecct GDP. Hoowever, the introductionn of capital servicess will increaase GDP, byy adding to the value of o own-use production p w work of servvices. 193. C Capital services are relaated to the use u of variouus consumerr durables in n own-use

producttion work off services, such s as household applliances, mottor vehicles and some types t of furniturre. As these goods typiccally have a service liffe which goees beyond one o year, it is i preferabble to estim mate a value of the capittal services that can be derived fro om using thee capital goods oover their enntire servicee life, insteaad of using numbers n on n their annuaal purchases. Capital services coonsist of the costs relateed to the deppreciation of o the relevaant equipmeent and b applyingg the Perpettual a returnn on the inveested capitaal. They shoould both bee estimated by Inventoory Method (PIM).12 Thhe PIM is inn widespreaad internatioonal use for purposes of estimatiing the valuue of consum mption of fiixed capital, and this Guide G recom mmends its use u in the conttext of own n-use producction work of o services. 194. A According too this methood, the grosss capital stoock is calcullated as the sum of pastt

purchasses, adjustedd for price changes c and d for the retiirement of the t durabless after the ennd of their serrvice life. Application A of the PIM requires thrree key piecces of inform mation: (i) the t value off capital forrmation each year (ii) the t length of service liffe and (iii) th he change in i the prices oof the fixed assets. Finaally, there arre two comm monly used d depreciatioon functionss applied in a PIM: the t geometrric and the straight-line s e depreciatio on model. In n the geomeetric ms more shaarply duringg the early part p of the service model, the value deeclines in abbsolute term w initial value of thee asset life andd then slowss towards thhe end. Undeer this approoach, the whole is neverr exhausted. In the straiight-line moodel, a consstant amounnt of value is deducted each year so that goods have no vallue left wheen they are withdrawn w f from the stoock. For houusehold m appropriate, becauuse househoold goods ussually servee in full durablees, the latter model is more capacityy until they break and require r repllacement. 195. The derivatio on of the retturn on capiital is requirred followin ng the calcu ulation of thhe

consum mption of fixxed capital. As explaineed in Chapter 3, the reccommended d approach for f estimatiing the return on capitaal used in ow wn-use prodduction worrk of servicees is to applly the interest rate on debbt securities issued by central c goveernment. 4.2.2.3 Estimatio on of taxess and subsiidies 196. The penultim mate adjustm ment in com mpiling a sattellite accouunt for own--use producction

work off services with w an extennded producction bounddary is the adjustment a r required for taxes and subbsidies. In thhe SNA, taxxes paid, and subsidies received byy household ds are recordded in the houusehold sectoor accountss as a stage of o the redisttribution off income. Hoowever, thiss househoold satellitee account fraamework reecognises thhat some taxxes and subssidies are diirectly related to the own--use producttion work of o services. 197. B By their very y nature, ow wn-use produ uction workk of services are not sold on the m market,

and therrefore, taxees on produccts and servvices are gennerally not relevant. r Ho owever, therre are some foorms of taxees on production that shhould be acccounted forr, in so far and a for the share s that they are linkedd to the prodduction of thhe service for f own finaal use by thee householdd. For o land, buildings, example, some couuntries may extract taxees based onn the ownersship or use of or otherr structures,, which in tuurn are usedd for own-uuse productioon work of services. Similarly, there maay taxes on the use of fixed f assets (vehicles, machinery, m ment) for and equipm d. Finally, certain c licennses – purposees of producction, whethher such asssets are ownned or rented 12

Perpetuual Inventory Method http:///www.oecd.oorg/std/producctivity-stats/433734711.pdf

59

for instaance paymeents on the ownership o o use of vehhicles and for or f hunting or fishing could c in some caases be conssidered a foorm of taxattion. 198. Su ubsidies can n be classifi fied into two o main types – subsidiees for produ ucts, and forr

producttion. Subsid dies for prodducts are noot related to own-use prroduction work w of serviices, and therrefore requiire no treatm ment. On thhe other hand, there are, in effect, subsidies s prrovided for ownn-use producction work of services.. These paym ments need to be directtly linked too the producttive activityy and may be recorded as social beenefits in caash in the SN NA. 199. A As every cou untry adminnisters its ow wn system of o taxes and d benefits it is not possiible to

prescribbe exactly which w taxes and subsidiies to includde in own-u use productiion work off servicess. However, as a rule, if i a househo old pays taxx or receivess a benefit for f the use or o ownershhip of a prooduct or asseet that used in own-usee productionn work of seervices, thenn part or all of thhat tax burdeen should be b reallocateed to the houusehold sateellite accou unt. Similarlly, if a benefit is paid for the t direct prrovision of own-use prroduction work w of serviices, this shhould be c that the benefit is recordeed as a subsiidy for that production.. Countries should be careful actuallyy connectedd to productiion. For insttance, somee countries pay p a beneffit to househholds with chhildren regarrdless of whhether that household h a actually carees for the chhildren or noot. n regard thhese as subssidies on prooduction. Countriies should not 4.2.2.4 Valuing llabour inp put to own‐‐use produ uction work k of service es 200. The final step p consists of o attributing g a value too the hours spent s on ow wn-use produuction

work off services acctivities, based on the valuation v teechniques prresented in Chapter 3. Assumiing countriees have adoppted the inp put approachh, using tim me use data and a a valuattion techniquue, the resuulting value of labour in nput is addeed to the row w of “imputted compensation for laboour input” of the relevaant activitiess. The balanncing item, “mixed “ incoome”, is normally used forr the producction of gooods and servvices of smaall-unincorpporated enteerprises, whhere the resultinng operatingg income froom the enterrprise typicaally consists of a mixtuure of (impllicit) compennsation for labour l inputt of the own ner and fam mily memberrs, and an opperating surrplus. In the casee of own-use productioon work of services, s thee similarity is quite signnificant, as it would include i the imputed com mpensationn for time sppent on ownn-use producction work of servicess activities and a the retuurn to capitaal for the weealth investeed in the caapital stock of o consum mer durabless. It is preferrable, howeever, to keepp both itemss separate, as a is done inn Table 4.3, in oorder not to lose inform mation. 201. A As outlined in i Chapter 3, 3 the outpu ut approach is an alternaative to the input approoach for

valuingg own-use prroduction work w of serv vices. In thiss case, it is not n the valuue of labourr input that is directly d meaasured, ratheer the volum me of servicces provided d. Output iss estimated by b valuingg the volumee of services provided at a market prrices, which h is insertedd into the rellevant row in the t proposeed supply annd use frameework. Couuntries that adopt a the ou utput approaach but require an estimatee for the labbour input caan do so by residual ussing the equ uation below w. This des a workedd example in i paragraphh 204: section also provid















202. Table 4.3 preesents the saatellite acco ount for ownn-use produuction work of services with an

extendeed productioon boundaryy. First, it hiighlights that the 1,3799 million ho ours workedd in own-use production work of adult a care seervices are now n valued at £11.8bn using a nottional £ Alsoo, Table 4.3 demonstrattes the alloccation of finnal housekeeepers’ wagge rate of a £8.55. consum mption expennditure by households h o own-use into intermeediation connsumption of 60

producttion work off services. For F instancee, £18.1bn of o fuel (reco orded in opeeration of trransport equipm ment) is now accounted for in the production oof own-use production p work w of trannsport servicess. As a result, £25.9bn of final con nsumption eexpenditure of fuel in Table T 4.2 redduces to £7.8bn in Table 4.33. 203. The intermed diate consum mption coluumns also reecord all of the inputs from f other own-use o

of produuction work k of service activities. For F instancee, in the ow wn-use produ uction workk of adult caare services there are £332.1bn of own-use travvel services – reflecting g the transportation elementt of adult caare - and £15.4bn of meeal servicess. Further, in n the exampple, there is -£1.3bn under “Other taxess on producttion minus other o subsiddies on prod duction”, reflecting subbsidies i in Annex 4.3 there is no consumptioon of fixed capital c or reeturn to for adullt care. As indicated capital associated a w adult care. with c As such, the calcuulated gross value added is simply the imputedd compensaation for labbour input too own-use production p w work of aduult care services added toogether with the subsiddies, equalliing £10.5bnn. Adding th his with £499.9bn of intermeediation connsumption generates g £6 60.3bn of ouutput. 204. Table 4.3 sho ows that thee output of own-use o prooduction woork of travel services am mounts

to £323.1bn, comp prising of £3300.4bn of gross g value added and £22.7bn £ of intermediatte mption. Coun ntries that use u the inputt approach will w have geenerated thee value of gross g consum value addded by add ding togetheer estimatess of consum mption of fix xed capital, return r to caapital, and impputed compensation forr labour. Hoowever, as explained e earlier, coun ntries that addopt the output aapproach caan derive estimates of the t imputedd compensattion for laboour input thrrough a residuall process. Using U the figgures in Tabble 4.3, this would be achieved a by subtractingg intermeediate consu umption (£222.7bn), con nsumption of o fixed capiital (£19.6bn), and retuurn to capital (£1.0bn) ( froom output (£323.1bn), which equaals £279.8bnn for the labbour input. This T means tthat theoretiically, counntries could obtain a vallue of labouur input withhout needinng to conductt a time-usee survey. Hoowever, thiss is a macroo total and provides p littlle informatiion – such as gender and d age dimennsions – aboout the people doing thee work. Furtther, as disccussed in Chappter 3, carry ying out the output apprroach posess many challenges, whiich is why thhis Guide rrecommends the input approach a an nd time-use data collecction. 205. Seection 4.2.4 4 will explaiin the principle changees to the tradditional natiional accounnt

headline measures.. Before thaat, the Guidee will explaain the final step of devveloping a fuull ded househoold sector acccounts. sequencce of extend

61

Own-use production work of travel services

Human health and social work activities

Of which: Residential care activities

Own-use Production work of adult care services

Gross capital formation

Total exports

Total final uses at purchasers' prices

Total use at purchasers' prices

Ores and minerals; electricity, gas and water

0.1 6.7 0.6 -

0.0 1.7 0.2 -

18.1 -

0.0 2.1 2.1 -

0.0 0.6 0.6 -

-

14.0 112.9 2.8 6.2 18.1 120.3 71.4

14.2 48.4 1.8 2.4 7.8 23.8 -

1.0 -0.6 0.8 -

2.1 12.5 14.7 -

17.3 60.3 1.8 2.4 7.8 39.3 -

31.3 173.2 7.3 14.5 25.9 157.3 71.4

of which: Water supply and miscellaneous services relating to the dwelling of which: Electricity, gas and other fuels of which: Operation of personal transport equipment Food products, beverages and tobacco; textiles, apparel and leather products of which: Food products for the preparation of home meals … Other transportable goods, except metal products, machinery and equipment of which: Glassware, tableware and household utensils

120.2 -

4.0 -

1.0 -

-

18.0 -

5.3 -

-

265.0 0.6 0.3

125.5 5.2 0.0

32.3 0.2

137.8 -

307.1 5.2 0.2

572.1 5.8 0.6

of which: Tools and equipment for house and gardens

18.7 2.0 -

1.3 2.1 -

88.9 0.5 -

-

0.5 0.8 -

0.1 0.2 -

-

32.7 0.7 89.5 1.8

8.3 0.2 7.9 1.3 1.2

37.2 1.2 21.7 102.6 -

20.7 2.1 -

34.3 1.3 29.6 106.1 1.2

45.7 2.0 29.6 195.5 4.8

-

-

-

-

-

-

32.1 15.4 1.7

0.2 105.9 33.9 45.7

4.2 214.9 308.5 123.6

-

-

-

-

228.5

64.2

105.6

22.7

56.5

16.6

49.9

1995.7

288.9

375.1

1712.5

3002.4

81.9 12.5 19.1 23.3 23.3 136.7 365.2 5,004 -

37.6 4.0 10.0 7.5 7.5 59.1 123.4 2,173 -

6.5 8.2 2.9 2.2 2.2 19.8 125.4 913 -

19.6 280.8 1.0 279.8 300.4 323.1 32,737 -

68.2 2.4 3.6 18.1 18.1 92.2 148.8 6,154 -

26.9 8.2 1.5 7.4 7.4 43.9 60.5 1,127 -

-1.3 11.8 11.8 10.5 60.3 1,379 -

1444.3 Total 674.5 39.2 166.0 1261.8 365.0 896.8 2141.5 3585.8 Total hours 67,716 14,423 104,925 118,203 140,379

Final consumption expenditure by households …

Of which: Passenger land transport

Agriculture, forestry and fishery products

Total intermediate uses

Transport and storage

9.7 17.9 15.8 -

£billions

…

Manufacturing

Table 4.3 Simplified use table at purchasers' prices (impact of extending the production boundary)

… Metal products, machinery and equipment of which: Household appliances of which: Transport equipment Constructions and construction services of which: Maintenance and repair of the dwelling …. Own-use production work of clothing services Own-use production work of travel services Own-use production work of meal services Own-use production work of housing services … Total Compensation of employees Other taxes on production minus other subsidies on production Consumption of fixed capital Operating surplus and mixed income, net Return to capital Imputed comp for labour to own-use production work of services Value added, gross Output million hours Hours worked in paid employment Hours worked on education and training Hours worked in own-use production work of services Leisure time Other activities n.e.c.

* Please note that the sub classification of COICOP-groups is only an approximation, for illustrative purposes. Not the whole COICOP (sub)group may fall within the perimeters of the main heading of the use table. 62

4.22.3 Seque ence of e extended househo old accou unts 206. This section describes th he derivatioon of the exttended houssehold secto or accounts by

combinning: a) own n-use producction work of o services accounts annd b) SNA household h s sector accountts. One of thhe main bennefits of derriving an exxtended sequuence of acccounts is the enhanceed insight provided p intoo traditionaal national account a variables such as a disposable income, and the savings ratio. The exampple is based on fictionaal data, and is i limited too a o own-use production work of serrvices activities – thosee relating to o housing, meal m subset of preparaation, and caare and launndry. The firrst step requuires collatiing informattion from SNA househoold sector accounts, sim milar to the informationn reported inn Table 4.4.

63

Table 4.4 Example of household sector accounts Household sector accounts Production account Output Intermediate consumption Value added, gross Consumption of fixed capital Value added, net

2,892 1,206 1,686 624 1,062

Generation of income account Value added, net Compensation of employees Taxes on production and imports Subsidies on production Operating surplus/Mixed income Allocation of primary income account Operating surplus/Mixed income Compensation of employees Property income, received Property income, paid Balance of primary incomes

1,062 96 40 -165 1,091

1,091 8,098 894 236 9,847

Secondary distribution of income account Balance of primary incomes Current transfers, received Current transfers, paid Disposable income

9,847 2,936 4,756 8,027

Redistribution of income in kind account Disposable income

8,027

Social transfers in kind Adjusted disposable income

Use of disposable income account Disposable income Individual consumption expenditure Adjustment for the change in pension entitlements Saving

8,027 8,216 7 -182

Use of adjusted disposable income account Adjusted disposable income Actual individual consumption Adjustment for the change in pension entitlements Saving

10,803 10,992 7 -182

Capital account Saving Gross fixed capital formation Consumption of fixed capital Net acquisition of non-produced assets Changes in inventories Acquisition of valuables Capital transfers, receivable Capital transfers, payable Net lending (+)/net borrowing(-)

2,776 10,803

64

-182 1,006 -624 -4 -3 6 25 -51 -589

207. The process of compilin ng an extendded sequencce of accounnts involvess gathering the t

relevantt informatioon from the SNA accou unts, and coombining wiith Househoold Satellitee Accounnts estimatess. The aim is i to combinne all formss of househoold productiion, both SN NA, and non-SN NA, to derive measures of total exttended houssehold outpuut, and laterr, adjusted disposaable income. Table 4.5 presents thee first step - simply repporting houssehold prodduction, and disttinguishing them by whhether they are SNA orr non-SNA activities. Table 44.5 Househ hold production accou unt, version n 1: SNA an nd non-SN NA productiion estimatted separattely

Primary function

Producttion account

Householld housing g services s (SNA and d non-SNA A)

SNA

Imputed compensation ur input to ownfor labou use prod duction work of services Imputed rent of ownerd dwellings and occupied own-account construcction Productio on of agricultural products forr own use, hunting, fishing etc. Taxes on n production and impo orts Subsidie es on productio on

no onSN NA

Own-u use production work of laund dry servic ces

Own-use produ uction work of o care serv vices (child, adult, and pet)

nonn SNA S

non-SNA A

onno SN NA

al Tota SNA A

1,,982

707

94 41

0

5,664

5,664

525

0

525

11

0

11

2

37

10

47

-9 94

0

-94

-94

Household meall preparattion (SNA and NA) non-SN

SNA

034 2,0

525

11

36

3

1

4

1

Total

Total nonSNA

Total ho ousehold prroduction

561

2,0 037

12

1,,986

708

84 49

573

5,580

6,153

361

24 40

5

75

24

24 4

366

363

729

Value ad dded, gross

922

2,2 277

17

2,,061

732

87 73

939

5,943

6,882

Intermed diate consump ption

616

99 96

8

8 822

77

10 05

624

2,000

2,624

1,538

3,2 273

25

2,,883

809

97 78

1,563

7,943

9,506

Value ad dded, net Consumption of fixed capital

Output

208. Table 4.5 hig ghlights both the SNA and non-SN NA compon nents of own n-use production

work off meal serviices. For insstance, the imputed i com mpensation for labour input i to ownn-use producttion work off meal serviices is £1,9882m (outsidde of SNA production p boundary) b comparred with £111m productiion of own--use agriculttural produccts (inside SNA S producction boundarry). Similarrly, own-usee productionn work of housing h servvices constittutes £2,0344m of producttion outsidee of the SNA A boundary (activities such s as cleaaning and ’ddo-it-yourseelf’), and £5225m of activ vity within the t production boundarry (imputed d rentals andd own-accouunt construction).

65

209. Table 4.6 con ntinues the example byy combiningg both SNA A and non-SN NA elementts of

househoold meal preeparation soo that total output o from m the househhold sector is i £2,908m and gross vaalue added is £2,078m. Table 44.6 Househ hold production accou unt, version n 2: SNA an nd non-SN NA productiion combin ned for househ hold meal seervices

Primary function

Producttion account

Imputed compensation ur input to ownfor labou use prod duction work of services

Householld housing g services (S SNA and non-SN NA)

nonSNA

SNA

2,034

Owner-o occupied dwellingss, own-account construcction

Own-use producti on work of laundry services

Own-use production work of care services (child, adult, and pet)

SNA + non-SNA A

nonSNA

nonSNA

1,982

707

941

0

5,664

5,664

525

0

525

11

0

11

2

37

10

47

-94

0

-94

-94

11

3

3 36

Total

Total SNA (adjusted when calculating extended accounts)

525

Agricultu ural products for own use, u hunting, fishing etc. Taxes on n production and impo orts

Househ ho ld mea al prepara ati on (SNA A and non nSNA)

5

1

Subsidie es on productio on

Total nonSNA

Total ho ousehold pro oduction

2,037

561

1,998

708

849

573

5,580

6,153

Consumption of fixed capital

240

361

80

24

24

366

363

729

Value ad dded, gross

2,277

922

2,078

732

873

940

5,942

6,882

996

616

830

77

105

623

2,001

2,624

3,273

1,5 538

2,908

809

978

1,563

7,943

9,506

Value ad dded, net

Intermed diate consump ption Output

66

Table 4.7 Sequence of extended accounts USES

RESOURCES

Household production

Household production

Total

Total, extended household accounts

809

2,908

3,273

1,538

9,506

10,835

1,062

-574

849

708

1,998

2,037

561

6,153

6,641

Operating surplus/Mixed income

1,091

-536

536

1,091

Compensation of employees

8,098

0

5,664

13,762

Imputed rent of owneroccupied dwellings and own-account construction

978

Other own-use production work of housing services

Own-use production work of care services (child, adult, and pet)

-1,563

Own-use production work of meal services

Adjustments (SNA-nonSNA)

2,892

Transactions and balancing items

Own-use production work of laundry services

Household accounts by SNA

Household accounts by SNA

Adjustments (SNA-nonSNA)

Own-use production work of care services (child, adult, and pet)

Own-use production work of laundry services

Own-use production work of meal services

Housing Other own-use production work of housing services

Imputed rent of owneroccupied dwellings and own-account construction

Total

Total, extended household accounts

Housing

Production account Output 3,207

2,624

616

996

830

77

105

-623

1,206

Intermediate consumption

7,628

6,882

922

2,277

2,078

732

873

-940

1,686

Value added, gross

987

729

361

240

80

24

24

-366

624

6,641

6,153

561

2,037

1,998

708

849

-574

1,062

Consumption of fixed capital Value added, net Generation of income account Value added, net

5,760

5,664

0

2,034

1,982

707

941

0

96

Compensation of employees

49

47

36

3

5

1

2

-38

40

Taxes on production and imports

-259

-94

0

0

0

0

-94

0

-165

Subsidies on production

1,091

536

525

0

11

0

0

-536

1,091

Operating surplus/Mixed income Allocation of primary income account

236 15,511

236 6,200

-536

9,847

Property income Balance of primary incomes

67

894

894

Secondary distribution of income account Balance of primary incomes

9,847

-536

6,200

15,511

2,936

0

-94

2,842

Disposable income

8,027

-574

6,153

13,606

Social transfers in kind

2,776

4,747

-47

38

4,756

Current transfers

13,606

6,153

-574

8,027

Disposable income Redistribution of income in kind account

16,382

6,153

-574

10,803

2,776

Adjusted disposable income Use of disposable income account Disposable income

13,714

9,506

-4,008

8,216

Adjustment for the change in pension entitlements -101

-3,353

3,434

-182

8,027

-574

6,153

13,606

Individual consumption expenditure 7

7

Saving Use of adjusted disposable income account Adjusted disposable income

16,490

9,506

-4,008

10,992

-3,353

3,434

-182

-574

6,153

16,382

Actual individual consumption Adjustment for the change in pension entitlements

-101

10,803

7

7

Saving Capital account Saving

-182

1,450

1,113

664

333

67

33

16

-669

1,006

Gross fixed capital formation

-987

-729

-361

-240

-80

-24

-24

366

-624

Consumption of fixed capital

68

3,434

-3,353

-101

-4

-4

Net acquisition of non-produced assets

-3

-3

Changes in inventories

6

6

Acquisition of valuables

-589

-3,737

3,737

-589

Capital transfers, receivable

25

25

Capital transfers, payable

-51

-51

Net lending (+)/net borrowing(-)

69

210. The final stag ges involve deriving thhe full sequeence of acco ounts from the t combined

informaation contain ned within household h sector s accouunts and Hoousehold Saatellite Accoounts. For each of accounnts detailed in Table 4.7 7, and explaained more below, trannsactions onn ownuse prodduction worrk of services are added to correspponding trannsactions inn the SNA sector accountts, and then overlappinng transactioons subtracted. Overlappping transaactions incluude the imputedd rents of ow wner-occuppied dwellinngs that beloong to the sccope of prod duction in the t SNA. T Therefore, su ubtracting thhese transacctions avoidds double acccounting when w derivinng extendeed householld sector acccounts. In thhe example provided th here is a collumn - “Tottal” - for househoold satellitee account caalculations, “Household “ d accounts by b SNA” foor sector acccounts for S.144 and “Adjuustments (SN NA-non-SN NA)” for ow wn-use produuction work k of services already included in n SNA calcuulations. Thhe result of calculations c s is in the coolumn “Tottal, m extendeed householld accounts””. The sequeence of houusehold secttor accountss starts from producttion accountts and contiinues up to the t capital accounts. a For each account, the rigghthand sidde highlightts the resouurces, while the left-hannd side of acccounts disp plays the usses. The balancees between resources r annd uses, called balancinng items, foorm the openning resource for the nextt account. 211. O On the produ uction accouunt, outputss are shown as resourcees and the uses are

intermeediate consu umption andd consumptiion of fixedd capital. Thhe balance of o resources and uses is nnet value addded, whichh is recorded d as openingg resources in the next account, generation of incom me account.13 212. The generatio on of incom me account shows s the breakdown b o net valuee added on the of t use

side. Thhese are com mpensation of employeees, taxes onn productionn, subsidiess on producttion (which is negative)) and as a baalancing iteem, net operrating surplu us. Due to the t applicatiion of method in thee valuation of household services,, in most hoousehold acttivities, operating input m surplusees deviate from f zero onnly in activiities that belong to the scope of SN NA production such as agriculturee, fishing annd own-acco ount housingg. 213. O On the next account, a alloocation of primary p incoome accounnt, compenssation of em mployees

and prooperty incom me received by househoolds are addded to operaating surplus on the resource side. Coompensationn of employyees consistts of wages and salariess as well as related soccial contribuutions that households h receive from m the otherr sectors of the t econom my. The use side s contains only property incomees payable by b househollds. The diffference betw ween the reesources mary incomees. Note thaat in the exaample proviided, own-uuse and usees is the balaance of prim producttion work off services is i not shownn by activityy due to thee incomes th hat are not related r to own--use production work of o services but b are receiivable/payaable by housseholds overrall. 214. O On the seconndary distribbution of inccome accouunt, current transfers arre added to the t

balancee of primaryy incomes onn the resourrce side andd current traansfers payaable by housseholds appear on o the use side. s The result is dispo osable incom me. In resouurces, current transfers to own-use production work of services s are negative beecause goveernment assistance for o services, and therefoore, childcarre is recordeed as subsiddies to own--use producction work of moved from currennt transfers to the generration of inccome accouunt. A similaar adjustmeent is wn-use prodduction made onn the use sidde due to exxtending thee productionn boundary to cover ow work off services. In the SNA, some paym ments (e.g., payments reelated to priivate cars) made m by househoolds to goveernment aree sub-divideed into curreent transferss and taxes on productiion 13

When uusing input method m for calcculating own-u use productionn work of servvices, the outpput is actuallyy the sum of costs: value added, net n + consump mption of fixedd capital + inteermediate consumption (insstead of the vaalue added, neet being the baalancing item)), but these figgures are alreaady received in i the own-usee production work w of services ccalculations and a can be addded in here as such.

70

dependiing whetherr they are reelated to houusehold connsumption or o business. As a resultt of the extensioon of the prroduction booundary, thee share of taaxes on prodduction incrreases, whicch is reflecteed as negativve transactioon on the usse side of thhe account. 215. The redistrib bution of inccome accouunt has no diirect connecction with own-use o prooduction

work off services. Social S transffers in kind such as heaalth and eduucation serv vices receiveed freely oor at reducedd prices are simply addded to dispoosable incom mes to end up u to adjusteed disposaable income. 216. The opening resource off the use of disposable income acccount is disp posable incoome,

which is the balanccing item off the seconddary distribuution of incoome accounnt. Adjustmeent for ments from the t SNA coore accountss is added to o it. The usees are the channge in pension entitlem the indiividual conssumption exxpenditure from f the SN NA core systtem and ow wn-use produuction work off services. To T end up too extended household h cconsumptionn expendituure, outputs of activitiees already belonging b too the SNA production p b boundary (such as own ner-occupiedd housingg) have to be subtractedd as well as those expennditures witthin the SN NA householld consum mption that are a related too own-use production p w work of serrvices. Thosse are produucts used in intermediatte consumpption (ingreddients for foood preparattion, detergents, etc.) and a i the extennded househhold accountts productts belongingg to gross fiixed capital formation in (househhold machinnery, etc.), otherwise o a double couunting wouldd occur in thhe system.). Intermeediate consuumption cann be extracteed from the production n account annd gross fixeed capital formation f a appears in thhe last accouunt, capital account. Thhe balancin ng item is saaving. 217. Fo or the adjussted disposaable incomee account, thhe opening resource r is adjusted

disposaable income extracted from fr the red distribution of income in i kind acco ount. Adjusttment for the cchange in pension p entittlements is added againn to resourcces. On the use u side, thee SNA actual inndividual coonsumptionn consists off householdd consumption expenditture and soccial transferrs in kind. Compared C too the previoous account,, saving rem mains unchaanged becauuse the only diffference bettween the acccounts is thhat social trransfers in kind k are addded to both sides of the adjuusted dispossable incom me account. 218. Fo or the capital account, the relevannt transactionns for the exxtended hou usehold acccounts

are grosss fixed cappital formatiion and consumption of fixed capiital. Capital acquired foor ownuse prodduction worrk of services, recorded d here by acctivity, is addded to the SNA gross fixed capital formation f a capital included and i in both sets (aacquisition of o dwellingss particularlly) is subtractted to end up u to extendded gross fix xed capital formation f of o householdds. Consum mption of fixed caapital is extrracted from m the producction accounnt. Net lendiing/ net borrrowing of the t extendeed householld accounts equals net lending/ l nett borrowingg in the coree accounts - the additionnal own-usee productionn work of seervices has neutral effeect because of being prooduced for ownn use and the other channges in acco ounts are baasically only y reallocatioons of transsactions. A sequeence of houusehold sectoor accountss is presenteed in Table 4.4, 4 based on o the numeerical example provided in Table 4.22 and Tablee 4.3.

71

4.22.4 Impa act on nattional acccount varriables 219. O Overall, the impact i on GDP G of exteending the production p boundary b w own-usee with

producttion work off services eqquals the tootal of imputed mixed income and the total caapital servicess from conssumer durabbles. Final consumption c n expenditurre of househholds will inncrease becausee of the additional conssumption off own-use prroduction work w of servvices. On the other hand, itt decreases because b of the t alternatiive recordinng of goods and servicees used duriing own-use production of servicees work, whhich adds to intermediaate consumpption, and thhe mer durables to gross fixxed capital formation. f shiftingg of consum 220. G Going furtheer down the SNA, prim mary income of the houssehold sectoor increases in par

with thee increase of o GDP. Houuseholds’ gross g saving increases inn line with the balancee of the changess in disposaable income and final consumptionn expenditurre, and equaals the increease in investm ments, thus leaving l net lending/net l borrowing unaffected.. 221. Itt is clear thaat the extenssion of the production p b boundary no ot only affeects GDP, buut also

disposaable income, final consuumption and d investmennts. Unless clearly distiinguished, this t may hamperr a comparisson with micro-data froom income surveys of households, h , in which a much more traaditional cooncept of inccome is appplied. In thiss respect, it is also impportant to acknow wledge the (aadditional) problems p inn interpretinng income developmen d nts of househholds. Lookingg at a microo-level, exteending the production p bboundary, may m actuallyy lead to a quite q counterrintuitive inccrease of inncome, whenn someone, for examplle, gets unem mployed, reeceives say 70% % of his previous incom me as a sociial benefit, and a starts dooing additio onal work att home. Also at a macro-levvel, somethhing similar could happpen, for exam mple in the aftermath of o an mic crisis wiith quickly increasing i r rates of unem mployment, although clear c evidennce of econom such ann event was not found inn the numbers after thee 2008 crisis, as the avaailable num mbers on hours w worked on own-use production work of servicces activitiess were incon nclusive.



72

Annex 4.1: Allocation of COICOP codes to intermediate and final consumption, and household capital COICOP Classification 01.1.1 01.1.2 01.1.3 01.1.4 01.1.5 01.1.6 01.1.7 01.1.8 01.1.9 01.2.1 01.2.2 02.1.1 02.1.2 02.1.3 02.2.0 02.3.0 03.1.1 03.1.2 03.1.3 03.1.4 03.2.1 03.2.2 04.1.1 04.1.2 04.2.1 04.2.2 04.3.1 04.3.2 04.4.1 04.4.2 04.4.3 04.4.4 04.5.1 04.5.2 04.5.3 04.5.4 04.5.5 05.1.1 05.1.2 05.2.0 05.3.1 05.3.2 05.3.3 05.4.0 05.5.1

Commodity Bread and cereals (ND) Meat (ND) Fish (ND) Milk, cheese and eggs (ND) Oils and fats (ND) Fruit (ND) Vegetables (ND) Sugar, jam, honey, chocolate and confectionery (ND) Food products n.e.c. (ND) Coffee, tea and cocoa (ND) Mineral waters, soft drinks, fruit and vegetable juices (ND) Spirits (ND) Wine (ND) Beer (ND) Tobacco (ND) Narcotics (ND) Clothing materials (SD) Garments (SD) Other articles of clothing and clothing accessories (SD) Cleaning, repair and hire of clothing (S) Shoes and other footwear (SD) Repair and hire of footwear (S) Actual rentals paid by tenants (S) Other actual rentals (S) Imputed rentals of owner-occupiers (S) Other imputed rentals (S) Materials for the maintenance and repair of the dwelling (ND) Services for the maintenance and repair of the dwelling (S) Water supply (ND) Refuse collection (S) Sewerage collection (S) Other services relating to the dwelling n.e.c. (S) Electricity (ND) Gas (ND) Liquid fuels (ND) Solid fuels (ND) Heat energy (ND) Furniture and furnishings (D) Carpets and other floor coverings (D) Household textiles (SD) Major household appliances whether electric or not (D) Small electric household appliances (SD) Repair of household appliances Glassware, tableware and household utensils (SD) Major tools and equipment (D)

73

Intermediate consumption X X X X X X X X X X

Final consumption X

Household Capital

X X

X X X X X X X X X

X X X X

X X

X X X X X X X X X X X X X X X X X X X

COICOP Classification 05.5.2 05.6.1 05.6.2 06.1.1 06.1.2 06.1.3 06.2.1 06.2.2 06.2.3 06.3.0 07.1.1 07.1.2 07.1.3 07.1.4 07.2.1 07.2.2 07.2.3 07.2.4 07.3.1 07.3.2 07.3.3 07.3.4 07.3.5 07.3.6 08.1.0 08.2.0 08.3.0 09.1.1 09.1.2 09.1.3 09.1.4 09.1.5 09.2.1 09.2.2 09.2.3 09.3.1 09.3.2 09.3.3 09.3.4 09.3.5 09.4.1 09.4.2 09.4.3 09.5.1 09.5.2

Commodity Small tools and miscellaneous accessories (SD) Non-durable household goods (ND) Domestic services and household services (S) Pharmaceutical products (ND) Other medical products (ND) Therapeutic appliances and equipment (D) Medical Services (S) Dental services (S) Paramedical services (S) Hospital services (S) Motor cars (D) Motor cycles (D) Bicycles (D) Animal drawn vehicles (D) Spare parts and accessories for personal transport equipment (SD) Fuels and lubricants for personal transport equipment (ND) Maintenance and repair of personal transport equipment (S) Other services in respect of personal transport equipment (S) Passenger transport by railway (S) Passenger transport by road (S) Passenger transport by air (S) Passenger transport by sea and inland waterway (S) Combined passenger transport (S) Other purchased transport services (S) Postal services (S) Telephone and telefax equipment (D) Telephone and telefax services (S) Equipment for the reception, recording and reproduction of sound and pictures (D) Photographic and cinematographic equipment and optical instruments (D) Information processing equipment (D) Recording media (SD) Repair of audio-visual, photographic and information processing equipment (S) Major durables for outdoor recreation (D) Musical instruments and major durables for indoor recreation (D) Maintenance and repair of other major durables for recreation and culture (S) Games, toys and hobbies (SD) Equipment for sport, camping and open-air recreation (SD) Gardens, plants and flowers (ND) Pets and related products (ND) Veterinary and other services for pets (S) Recreational and sporting services (S) Cultural services (S) Games of chance (S) Books (SD) Newspapers and periodicals (ND)

74

Intermediate consumption X X X

Final consumption

Household Capital

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

COICOP Classification 09.5.3 09.5.4 09.6.0 10 10.1.0 10.2.0 10.3.0 10.4.0 10.5.0 11.1.1 11.1.2 11.2.0 12.1.1 12.1.2 12.1.3 12.2.0 12.3.1 12.3.2 12.4.0 12.5.1 12.5.2 12.5.3 12.5.4 12.5.5 12.6.2 12.7.0

Intermediate consumption

Commodity Miscellaneous printed matter (ND) Stationery and drawing materials (ND) Package holidays (S) Education Pre-primary and primary education (S) Secondary education (S) Post-secondary non-tertiary education (S) Tertiary education (S) Education not definable by level (S) Restaurants, cafés and the like (S) Canteens (S) Accommodation services (S) Hairdressing salons and personal grooming establishments (S) Electric appliances for personal care (SD) Other appliances, articles and products for personal care (ND) Prostitution (S) Jewellery, clocks and watches (D) Other personal effects (SD) Social protection (S) Life insurance (S) Insurance connected with the dwelling (S) Insurance connected with health (S) Insurance connected with transport (S) Other insurance (S) Other financial services n.e.c. (S) Other services n.e.c. (S)

75

Final consumption X X X X X X X X X X X X X X

X

X

X

X X X X X

X X

X X X X X

Household Capital

Annex 4.2: Allocation of intermediate consumption to own‐ use production work of services activities    COICOP Classification 01.1.1 01.1.2 01.1.3 01.1.4 01.1.5 01.1.6 01.1.7 01.1.8 01.1.9 01.2.1 03.1.1 03.1.3 04.1.1 04.3.1 04.3.2 04.4.1 04.4.2 04.4.3 04.4.4 04.5.1 04.5.2 04.5.3 04.5.4 04.5.5 05.1.3 05.2.0 05.3.2 05.3.3 05.4.0 05.5.2 05.6.1 05.6.2 07.2.1 07.2.2 07.2.3

Own-use production work of service activity

  

Care services

Commodity Bread and cereals (ND) Meat (ND) Fish (ND) Milk, cheese and eggs (ND) Oils and fats (ND) Fruit (ND) Vegetables (ND) Sugar, jam, honey, chocolate and confectionery Food products n.e.c. (ND) Coffee, tea and cocoa (ND) Clothing materials (SD) Other articles of clothing and clothing access Actual rentals paid by tenants (S) Materials for the maintenance and repair Services for the maintenance and repair Water supply (ND) Refuse collection (S) Sewerage collection (S) Other services relating to the dwelling n.e.c. Electricity (ND) Gas (ND) Liquid fuels (ND) Solid fuels (ND) Heat energy (ND) Repair of furniture, furnishings and floor cov. Household textiles (SD) Small electric household appliances (SD) Repair of household appliances (S) Glassware, tableware and household utensils (S Small tools and miscellaneous accessories (SD) Non-durable household goods (ND) Domestic services and household services (S) Spare parts and accessories for personal transport Fuels and lubricants for personal transport equipment Maintenance and repair of personal transport equipment

76

Nutrition services X X X X X X X

Clothing services

Travel services

Housing services

X X X X X X X X X X X X X X X X X X X

X

X

X X X

X

X X X X X

  

  

COICOP Classification

Commodity

07.2.4 09.3.3 12.1.3 12.3.2 12.5.2 12.5.4

Own-use production work of service activity Care services

Other services in respect of personal transport Gardens, plants and flowers (ND) Other appliances, articles and products for personal care Other personal effects (SD) Insurance connected with the dwelling (S) Insurance connected with transport (S)

77

Nutrition services

Clothing services

Travel services

Housing services

X X X X X X

Annex 4.3: Allocation of household capital to own‐use production work of services activities COICOP classification

Description

05.1.1

Furniture & furnishings

05.1.2

Carpets etc.

05.3.1

Major HH appliances

Divided into:

Principal function

Cookers Microwaves Fridges & freezers Dishwashers Washing machines & driers Fires, showers, vacuum cleaners etc.

05.5.1

Major tools & equipment

07.1.1

Motor cars

New Second hand

07.1.2

Motor cycles

07.1.3

Bicycles



78

Asset life length

Own-use production work of housing services Own-use production work of housing services Own-use production work of nutrition services Own-use production work of nutrition services Own-use production work of nutrition services Own-use production work of nutrition services Own-use production work of clothing services Own-use production work of housing services

15

Own-use production work of housing services Own-use production work of transport services Own-use production work of transport services Own-use production work of transport services Own-use production work of transport services

7

10 12 7 11 9 9 8

13 11 10 9

79

Own-use production work of clothing services

Transport and storage

Of which: Passenger land transport

Own-use production work of travel services

Accommodation and food service activities

Agriculture, forestry and fishery products Ores and minerals; electricity, gas and water of which: Water supply and miscellaneous services relating to the dwelling (COICOP 04.4.1 to 04.4.4) of which: Electricity, gas and other fuels(COICOP 04.5.1 to 04.5.5) of which: Operation of personal transport equipment (COICOP 07.2.) Food products, beverages and tobacco; textiles, apparel and leather products of which: Food products for the preparation of home meals (COICOP 01.1.1 to 01.2.1) of which: Clothing and footwear (COICOP 03.) of which: Household Textiles (COICOP 05.2.0) Other transportable goods, except metal products, machinery and equipment of which: Glassware, tableware and household utensils (COICOP 05.4) of which: Tools and equipment for house and gardens (COICOP 05.5) of which: Goods and services for routine household maintenance COICOP(05.6.1 AND 05.6.2) of which: Other recreational items and equipment, gardens and pets (COICOP 09.3.3) Metal products, machinery and equipment of which: Household appliances (COICOP 05.3.1 to 05.3.3) of which: Transport equipment (COICOP 07.1) Constructions and construction services of which: Maintenance and repair of the dwelling (COICOP 04.3.1 and 04.3.2) Distributive trade services; accommodation, food and beverage serving services; transport services; and electricity, gas and water distribution services Financial and related services; real estate services; and rental and leasing services of which: Actual Rent paid by tenants (COICOP 4.1.1) of which: Insurance (COICOP 12.5.2 AND 12.5.4) Business and production services of which: Repair of furniture, furnishings and floor coverings (COICOP 05.1.3) Community, social and personal services of which: Other appliances, articles and products for personal care (ND) (COICOP 12.1.3) of which: Other personal effects (SD) (COICOP 12.3.2) Own-use production work of clothing services Own-use production work of travel services Own-use production work of meal services Own-use production work of housing services Own-use production work of cleaning services Own-use production work of adult care services Own-use production work of childcare services Own-use production work of repairing services Own-use production work of laundry services Own-use production work of pet care services Own-use production work of gardening services Own-use production work of meal planning and shopping services Total Compensation of employees Other taxes on production minus other subsidies on production Consumption of fixed capital Operating surplus and mixed income, net Return to capital Imputed compensation for labour input to own-use production work of services Value added, gross Output million hours Hours worked in paid employment Hours worked on education and training Hours worked in own-use production work of services Leisure time Other activities n.e.c.

Of which: Manufacture of wearing apparel

£billions

Manufacturing

Annex 4.4: Use table at purchasers' prices (excluding extension of the production boundary)

9.7 17.9 15.8 120.2 18.7 2.0 -

0.1 0.1 0.1 0.7 0.1 0.0 -

-

0.1 6.7 0.6 4.0 1.3 2.1 -

0.0 1.7 0.2 1.0 0.3 0.5 -

-

0.8 1.5 16.5 1.2 0.1 0.8 -

8.8 11.2 8.6 15.7 228.5 81.9 12.5 19.1 23.3 23.3 136.7 365.2 5,004 -

0.1

-

22.6

5.6

0.1 0.1 0.1 1.4 0.5 -0.1 0.1 0.1 0.1 0.7 2.1 -

-

4.4 4.9 17.5 64.2 37.6 4.0 10.0 7.5 7.5 59.1 123.4 2,173 -

1.1 1.2 4.3 15.9 6.5 8.2 2.9 2.2 2.2 19.8 35.7 913 -

36 -

251 -

32,737 -

1.7 1.9 1.9 5.4 31.8 23.4 3.3 2.1 8.2 8.2 37.0 68.8 1,944 -

80

Own-use production work of meal services

Real estate activities excluding imputed rents

Imputed rents of owner-occupied dwellings

Own-use production work of housing services by renters

Administrative and support service activities

Of which: General cleaning of buildings

Agriculture, forestry and fishery products Ores and minerals; electricity, gas and water of which: Water supply and miscellaneous services relating to the dwelling (COICOP 04.4.1 to 04.4.4) of which: Electricity, gas and other fuels(COICOP 04.5.1 to 04.5.5) of which: Operation of personal transport equipment (COICOP 07.2.) Food products, beverages and tobacco; textiles, apparel and leather products of which: Food products for the preparation of home meals (COICOP 01.1.1 to 01.2.1) of which: Clothing and footwear (COICOP 03.) of which: Household Textiles (COICOP 05.2.0) Other transportable goods, except metal products, machinery and equipment of which: Glassware, tableware and household utensils (COICOP 05.4) of which: Tools and equipment for house and gardens (COICOP 05.5) of which: Goods and services for routine household maintenance COICOP(05.6.1 AND 05.6.2) of which: Other recreational items and equipment, gardens and pets (COICOP 09.3.3) Metal products, machinery and equipment of which: Household appliances (COICOP 05.3.1 to 05.3.3) of which: Transport equipment (COICOP 07.1) Constructions and construction services of which: Maintenance and repair of the dwelling (COICOP 04.3.1 and 04.3.2) Distributive trade services; accommodation, food and beverage serving services; transport services; and electricity, gas and water distribution services Financial and related services; real estate services; and rental and leasing services of which: Actual Rent paid by tenants (COICOP 4.1.1) of which: Insurance (COICOP 12.5.2 AND 12.5.4) Business and production services of which: Repair of furniture, furnishings and floor coverings (COICOP 05.1.3) Community, social and personal services of which: Other appliances, articles and products for personal care (ND) (COICOP 12.1.3) of which: Other personal effects (SD) (COICOP 12.3.2) Own-use production work of clothing services Own-use production work of travel services Own-use production work of meal services Own-use production work of housing services Own-use production work of cleaning services Own-use production work of adult care services Own-use production work of childcare services Own-use production work of repairing services Own-use production work of laundry services Own-use production work of pet care services Own-use production work of gardening services Own-use production work of meal planning and shopping services Total Compensation of employees Other taxes on production minus other subsidies on production Consumption of fixed capital Operating surplus and mixed income, net Return to capital Imputed compensation for labour input to own-use production work of services Value added, gross Output million hours Hours worked in paid employment Hours worked on education and training Hours worked in own-use production work of services Leisure time Other activities n.e.c.

Of which: Restaurants

£billions

0.3 0.6 6.1 0.5 0.0 0.3 -

-

0.1 0.0 0.5 0.1 9.7 -

0.7 0.1 0.0 5.4 -

-

0.0 1.0 0.6 2.5 1.4 0.5 -

0.0 0.0 0.0 0.0 0.0 0.0 -

0.6

-

0.5

-

-

0.7 0.7 2.0 11.8 8.8 0.4 0.8 3.0 3.0 12.9 24.7 795 -

24,658 -

6.6 0.8 5.2 23.5 9.1 -0.6 12.6 22.2 22.2 43.2 66.7 -

13.5 0.3 1.2 21.3 -4.4 42.7 74.9 74.9 113.2 134.5 -

-

578 -

3.5 3.3 2.6 28.7 44.2 33.5 2.1 11.7 12.6 12.6 59.9 104.1 2,834 -

0.1 0.1 0.0 0.5 0.7 2.3 -0.7 0.3 0.4 0.4 2.4 3.1 283 -

81

Education

Of which: Preprimary and primary education and secondary

Human health and social work activities

Of which: Residential care activities

Own-use production work of adult care services

Of which: Other social work activities without accommodation

Agriculture, forestry and fishery products Ores and minerals; electricity, gas and water of which: Water supply and miscellaneous services relating to the dwelling (COICOP 04.4.1 to 04.4.4) of which: Electricity, gas and other fuels(COICOP 04.5.1 to 04.5.5) of which: Operation of personal transport equipment (COICOP 07.2.) Food products, beverages and tobacco; textiles, apparel and leather products of which: Food products for the preparation of home meals (COICOP 01.1.1 to 01.2.1) of which: Clothing and footwear (COICOP 03.) of which: Household Textiles (COICOP 05.2.0) Other transportable goods, except metal products, machinery and equipment of which: Glassware, tableware and household utensils (COICOP 05.4) of which: Tools and equipment for house and gardens (COICOP 05.5) of which: Goods and services for routine household maintenance COICOP(05.6.1 AND 05.6.2) of which: Other recreational items and equipment, gardens and pets (COICOP 09.3.3) Metal products, machinery and equipment of which: Household appliances (COICOP 05.3.1 to 05.3.3) of which: Transport equipment (COICOP 07.1) Constructions and construction services of which: Maintenance and repair of the dwelling (COICOP 04.3.1 and 04.3.2) Distributive trade services; accommodation, food and beverage serving services; transport services; and electricity, gas and water distribution services Financial and related services; real estate services; and rental and leasing services of which: Actual Rent paid by tenants (COICOP 4.1.1) of which: Insurance (COICOP 12.5.2 AND 12.5.4) Business and production services of which: Repair of furniture, furnishings and floor coverings (COICOP 05.1.3) Community, social and personal services of which: Other appliances, articles and products for personal care (ND) (COICOP 12.1.3) of which: Other personal effects (SD) (COICOP 12.3.2) Own-use production work of clothing services Own-use production work of travel services Own-use production work of meal services Own-use production work of housing services Own-use production work of cleaning services Own-use production work of adult care services Own-use production work of childcare services Own-use production work of repairing services Own-use production work of laundry services Own-use production work of pet care services Own-use production work of gardening services Own-use production work of meal planning and shopping services Total Compensation of employees Other taxes on production minus other subsidies on production Consumption of fixed capital Operating surplus and mixed income, net Return to capital Imputed compensation for labour input to own-use production work of services Value added, gross Output million hours Hours worked in paid employment Hours worked on education and training Hours worked in own-use production work of services Leisure time Other activities n.e.c.

Own-use production work of cleaning services

£billions

-

0.0 1.2 0.7 3.8 0.1 0.5 -

0.0 0.3 0.2 0.9 0.0 0.1 -

0.0 2.1 2.1 18.0 0.5 0.8 -

0.0 0.6 0.6 5.3 0.1 0.2 -

-

0.0 0.8 0.8 6.5 0.2 0.3 -

-

2.2

0.5

6.3

1.9

-

2.3

-

0.5 2.3 12.9 24.2 64.5 1.2 9.4 0.3 0.3 75.5 99.6 5,565 -

0.1 0.6 3.1 5.8 20.7 -2.3 2.5 0.1 0.1 21.0 26.8 4,346 -

0.7 0.9 6.2 16.6 26.9 8.2 1.5 7.4 7.4 43.9 60.5 1,127 -

-

0.9 1.1 7.7 20.5 28.0 -10.1 1.1 5.5 5.5 24.5 45.1 656 -

15,085 -

2.5 2.9 21.2 56.5 68.2 2.4 3.6 18.1 18.1 92.2 148.8 6,154 -

1,379 -

82

Other service activities

Of which: Repair of personal and household goods

Own-use production work of repairing services

Of which: Washing and (dry ) cleaning of textile and fur products

Own-use production work of laundry services

Of which: Other personal service activities n.e.c.

Agriculture, forestry and fishery products Ores and minerals; electricity, gas and water of which: Water supply and miscellaneous services relating to the dwelling (COICOP 04.4.1 to 04.4.4) of which: Electricity, gas and other fuels(COICOP 04.5.1 to 04.5.5) of which: Operation of personal transport equipment (COICOP 07.2.) Food products, beverages and tobacco; textiles, apparel and leather products of which: Food products for the preparation of home meals (COICOP 01.1.1 to 01.2.1) of which: Clothing and footwear (COICOP 03.) of which: Household Textiles (COICOP 05.2.0) Other transportable goods, except metal products, machinery and equipment of which: Glassware, tableware and household utensils (COICOP 05.4) of which: Tools and equipment for house and gardens (COICOP 05.5) of which: Goods and services for routine household maintenance COICOP(05.6.1 AND 05.6.2) of which: Other recreational items and equipment, gardens and pets (COICOP 09.3.3) Metal products, machinery and equipment of which: Household appliances (COICOP 05.3.1 to 05.3.3) of which: Transport equipment (COICOP 07.1) Constructions and construction services of which: Maintenance and repair of the dwelling (COICOP 04.3.1 and 04.3.2) Distributive trade services; accommodation, food and beverage serving services; transport services; and electricity, gas and water distribution services Financial and related services; real estate services; and rental and leasing services of which: Actual Rent paid by tenants (COICOP 4.1.1) of which: Insurance (COICOP 12.5.2 AND 12.5.4) Business and production services of which: Repair of furniture, furnishings and floor coverings (COICOP 05.1.3) Community, social and personal services of which: Other appliances, articles and products for personal care (ND) (COICOP 12.1.3) of which: Other personal effects (SD) (COICOP 12.3.2) Own-use production work of clothing services Own-use production work of travel services Own-use production work of meal services Own-use production work of housing services Own-use production work of cleaning services Own-use production work of adult care services Own-use production work of childcare services Own-use production work of repairing services Own-use production work of laundry services Own-use production work of pet care services Own-use production work of gardening services Own-use production work of meal planning and shopping services Total Compensation of employees Other taxes on production minus other subsidies on production Consumption of fixed capital Operating surplus and mixed income, net Return to capital Imputed compensation for labour input to own-use production work of services Value added, gross Output million hours Hours worked in paid employment Hours worked on education and training Hours worked in own-use production work of services Leisure time Other activities n.e.c.

Own-use production work of childcare services

£billions

-

0.0 0.3 0.4 1.0 0.1 0.3 -

0.0 0.0 0.0 0.0 0.0 0.0 -

-

0.0 0.0 0.0 0.0 0.0 0.0 -

-

0.0 0.1 0.1 0.3 0.0 0.1 -

-

0.7

0.0

-

0.0

-

0.2

-

0.8 1.3 6.4 11.2 13.7 0.3 1.0 11.4 11.4 26.5 37.7 -

0.0 0.0 0.2 0.3 0.2 0.2 0.0 0.3 0.3 0.8 1.1 -

-

0.0 0.0 0.2 0.4 0.2 0.5 0.0 0.5 0.5 1.3 1.7 -

-

0.2 0.3 1.8 3.1 0.2 4.5 0.3 3.6 3.6 8.7 11.7 -

16,443 -

660 -

50 -

-

49 887

-

-

-

114 6,993

-

-

83

Own-use production work of gardening services

-

-

-

-

-

-

-

-

-

-

-

-

-

4.6 -0.0 0.3 0.3 4.9 4.9 -

3.8 -0.1 0.2 0.2 3.9 3.9 -

-

-

0.8 -0.8 -

58 1,978

-

-

58 -

1,775 -

2,740 -

3.3 54.3 10.1 100.9 9.0 67.4 56.7

58 -

Rest of the economy

Of which: other activities of households as employers of domestic

Own-use production work of meal planning and shopping services Of which: other activities of households as employers of domestic

Activities of households as employers

Agriculture, forestry and fishery products Ores and minerals; electricity, gas and water of which: Water supply and miscellaneous services relating to the dwelling (COICOP 04.4.1 to 04.4.4) of which: Electricity, gas and other fuels(COICOP 04.5.1 to 04.5.5) of which: Operation of personal transport equipment (COICOP 07.2.) Food products, beverages and tobacco; textiles, apparel and leather products of which: Food products for the preparation of home meals (COICOP 01.1.1 to 01.2.1) of which: Clothing and footwear (COICOP 03.) of which: Household Textiles (COICOP 05.2.0) Other transportable goods, except metal products, machinery and equipment of which: Glassware, tableware and household utensils (COICOP 05.4) of which: Tools and equipment for house and gardens (COICOP 05.5) of which: Goods and services for routine household maintenance COICOP(05.6.1 AND 05.6.2) of which: Other recreational items and equipment, gardens and pets (COICOP 09.3.3) Metal products, machinery and equipment of which: Household appliances (COICOP 05.3.1 to 05.3.3) of which: Transport equipment (COICOP 07.1) Constructions and construction services of which: Maintenance and repair of the dwelling (COICOP 04.3.1 and 04.3.2) Distributive trade services; accommodation, food and beverage serving services; transport services; and electricity, gas and water distribution services Financial and related services; real estate services; and rental and leasing services of which: Actual Rent paid by tenants (COICOP 4.1.1) of which: Insurance (COICOP 12.5.2 AND 12.5.4) Business and production services of which: Repair of furniture, furnishings and floor coverings (COICOP 05.1.3) Community, social and personal services of which: Other appliances, articles and products for personal care (ND) (COICOP 12.1.3) of which: Other personal effects (SD) (COICOP 12.3.2) Own-use production work of clothing services Own-use production work of travel services Own-use production work of meal services Own-use production work of housing services Own-use production work of cleaning services Own-use production work of adult care services Own-use production work of childcare services Own-use production work of repairing services Own-use production work of laundry services Own-use production work of pet care services Own-use production work of gardening services Own-use production work of meal planning and shopping services Total Compensation of employees Other taxes on production minus other subsidies on production Consumption of fixed capital Operating surplus and mixed income, net Return to capital Imputed compensation for labour input to own-use production work of services Value added, gross Output million hours Hours worked in paid employment Hours worked on education and training Hours worked in own-use production work of services Leisure time Other activities n.e.c.

Own-use production work of pet care services

£billions

60.2 53.9 157.6 573.5 338.0 31.9 75.7 185.2 185.2 630.8 1204.3 18,237 104,925 -

Final consumption expenditure by non-profit organisations

Final consumption expenditure by government

Gross capital formation

Total exports

Total final uses at purchasers' prices

Total use at purchasers' prices

14.0 Agriculture, forestry and fishery products 86.0 Ores and minerals; electricity, gas and water of which: Water supply and miscellaneous services relating to the dwelling (COICOP 04.4.1 to 04.4.4) of which: Electricity, gas and other fuels(COICOP 04.5.1 to 04.5.5) of which: Operation of personal transport equipment (COICOP 07.2.) 46.7 Food products, beverages and tobacco; textiles, apparel and leather products of which: Food products for the preparation of home meals (COICOP 01.1.1 to 01.2.1) of which: Clothing and footwear (COICOP 03.) of which: Household Textiles (COICOP 05.2.0) 252.2 Other transportable goods, except metal products, machinery and equipment of which: Glassware, tableware and household utensils (COICOP 05.4) of which: Tools and equipment for house and gardens (COICOP 05.5) of which: Goods and services for routine household maintenance COICOP(05.6.1 AND 05.6.2) of which: Other recreational items and equipment, gardens and pets (COICOP 09.3.3) 31.4 Metal products, machinery and equipment of which: Household appliances (COICOP 05.3.1 to 05.3.3) of which: Transport equipment (COICOP 07.1) 89.5 Constructions and construction services of which: Maintenance and repair of the dwelling (COICOP 04.3.1 and 04.3.2) Distributive trade services; accommodation, food and beverage serving services; transport services; and 103.0 electricity, gas and water distribution services 104.9 Financial and related services; real estate services; and rental and leasing services of which: Actual Rent paid by tenants (COICOP 4.1.1) of which: Insurance (COICOP 12.5.2 AND 12.5.4) 79.5 Business and production services of which: Repair of furniture, furnishings and floor coverings (COICOP 05.1.3) 271.8 Community, social and personal services of which: Other appliances, articles and products for personal care (ND) (COICOP 12.1.3) of which: Other personal effects (SD) (COICOP 12.3.2) Own-use production work of clothing services Own-use production work of travel services Own-use production work of meal services Own-use production work of housing services Own-use production work of cleaning services Own-use production work of adult care services Own-use production work of childcare services Own-use production work of repairing services Own-use production work of laundry services Own-use production work of pet care services Own-use production work of gardening services Own-use production work of meal planning and shopping services Total 1078.8 Compensation of employees 674.5 Other taxes on production minus other subsidies on production 52.6 Consumption of fixed capital 187.9 Operating surplus and mixed income, net 364.0 Return to capital 364.0 Imputed compensation for labour input to own-use production work of services Value added, gross 1279.1 Output 2357.9 million hours Total hours Hours worked in paid employment 43,207 Hours worked on education and training 14,423 Hours worked in own-use production work of services 104,925 Leisure time 118,203 140,379 Other activities n.e.c.

Final consumption expenditure by households

Total intermediate uses

£billions

14.2 48.4 7.3 14.5 25.9 95.2 71.4 3.2 2.0 125.5 0.6 1.0 3.2 25.1 36.8 5.8 30.2 1.3 1.2 129.5

-

11.5 2.1

1.0 -0.6 0.8 32.3 19.2 0.6 102.6 0.6

2.1 12.5 14.7 137.8 46.7 2.1 27.3

17.3 60.3 110.6 307.1 102.7 106.1 159.5

31.3 146.2 157.3 559.3 134.1 195.5 262.4

240.6 24.2 11.4 62.4 1.5 90.9 9.2 4.6 844.7 -

0.2 42.3 42.5 -

2.1 253.3 268.9 -

7.0 32.2 31.7 226.9 -

52.0 27.1 61.4 383.7 -

299.7 123.7 479.6 1766.7 -

404.7 203.3 751.4 2845.5 -

Note: Please note that the sub classification of COICOP-groups is only an approximation, for illustrative purposes. Not the whole COICOP (sub)group may fall within the perimeters of the main heading of the use table.

84

Of which: Passenger land transport Own-use production work of travel services Accommodation and food service activities

£billions

Of which: Manufacture of wearing apparel Own-use production work of clothing services Transport and storage

Manufacturing

Annex 4.5: Use table at purchasers' prices (impact of extending the production boundary)

Agriculture, forestry and fishery products

9.7

0.1

-

0.1

0.0

-

0.8

Ores and minerals; electricity, gas and w ater

17.9

0.1

-

6.7

1.7

-

1.5

of w hich: Water supply and miscellaneous services relating to the dw elling (COICOP 04.4.1 to 04.4. of w hich: Electricity, gas and other fuels(COICOP 04.5.1 to 04.5.5) of w hich: Operation of personal transport equipment (COICOP 07.2.) Food products, beverages and tobacco; textiles, apparel and leather products of w hich: Food products for the preparation of home meals (COICOP 01.1.1 to 01.2.1)

-

-

-

-

-

-

-

15.8

0.1

2.2

0.6

0.2

18.1 -

16.5

-

-

-

-

-

-

-

of w hich: Clothing and footw ear (COICOP 03.)

-

-

2.2

-

-

-

-

of w hich: Household Textiles (COICOP 05.2.0)

-

-

-

-

-

-

-

120.2

0.7

-

4.0

1.0

-

1.2 -

Other transportable goods, except metal products, machinery and equipment of w hich: Glassw are, tablew are and household utensils (COICOP 05.4)

-

-

-

-

-

-

of w hich: Tools and equipment for house and gardens (COICOP 05.5)

-

-

-

-

-

-

-

of w hich: Goods and services for routine household maintenance COICOP(05.6.1 AND 05.6.2)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Metal products, machinery and equipment of w hich: Household appliances (COICOP 05.3.1 to 05.3.3)

of w hich: Other recreational items and equipment, gardens and pets (COICOP 09.3.3)

18.7

0.1

-

1.3

88.9

-

0.1

-

-

-

-

-

-

-

of w hich: Transport equipment (COICOP 07.1)

-

-

-

-

-

-

-

Constructions and construction services of w hich: Maintenance and repair of the dw elling (COICOP 04.3.1 and 04.3.2) Distributive trade services; accommodation, food and beverage serving services; transport services; and electricity, gas and w ater distribution services

2.0

0.0

-

2.1

0.5

-

0.8

-

-

-

-

-

-

-

8.8

0.1

-

22.6

5.6

18.1

1.7

Financial and related services; real estate services; and rental and leasing services of w hich: Actual Rent paid by tenants (COICOP 4.1.1)

11.2

0.1

-

4.4

1.1

2.3

1.9

-

-

-

-

-

-

-

-

-

-

-

-

2.3

-

Business and production services of w hich: Repair of furniture, furnishings and floor coverings (COICOP 05.1.3)

8.6

0.1

-

4.9

2.3

-

1.9

-

-

-

-

-

-

-

Community, social and personal services of w hich: Other appliances, articles and products for personal care (ND) (COICOP 12.1.3)

15.7

0.1

-

17.5

4.3

2.3

5.4

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

of w hich: Insurance (COICOP 12.5.2 AND 12.5.4)

of w hich: Other personal effects (SD) (COICOP 12.3.2) Ow n-use production w ork of clothing services Ow n-use production w ork of travel services

-

-

-

-

-

-

-

Ow n-use production w ork of meal services

-

-

-

-

-

-

-

Ow n-use production w ork of housing services

-

-

-

-

-

-

-

Ow n-use production w ork of cleaning services

-

-

-

-

-

-

-

Ow n-use production w ork of adult care services

-

-

-

-

-

-

-

Ow n-use production w ork of childcare services

-

-

-

-

-

-

-

Ow n-use production w ork of repairing services

-

-

-

-

-

-

-

Ow n-use production w ork of laundry services

-

-

-

-

-

-

-

Ow n-use production w ork of pet care services

-

-

-

-

-

-

-

Ow n-use production w ork of gardening services

-

-

-

-

-

-

-

228.5

1.4

2.2

64.2

105.6

22.7

31.8

Ow n-use production w ork of meal planning and shopping services Total Compensation of employees

81.9

0.5

-

37.6

6.5

-

23.4

Other taxes on production minus other subsidies on production

12.5

-0.1

4.0

8.2

19.1

10.0

Operating surplus and mixed income, net

23.3

0.1 0.1

2.1

7.5

2.9 2.2

19.6

3.3

Consumption of fixed capital

0.2

280.8

8.2

23.3

0.1

-

7.5

2.2

1.0

8.2

-

-

2.1

-

-

279.8

-

Value added, gross

136.7

0.7

2.4

59.1

19.8

300.4

37.0

Output

365.2 -

2.1 -

4.6 -

123.4 -

125.4 -

323.1 -

68.8 -

5,004 -

-

-

2,173 -

913 -

-

1,944 -

Return to capital Imputed compensation for labour input to ow n-use production w ork of services

million hours Hours w orked in paid employment Hours w orked on education and training

36

32,737

2.1

Hours w orked in ow n-use production w ork of services

-

-

251

-

-

Leisure time

-

-

-

-

-

-

-

Other activities n.e.c.

-

-

-

-

-

-

-

85

-

Of which: General cleaning of buildings

Own-use production work of meal services Real estate activities excluding imputed rents Imputed rents of owner-occupied dwellings Own-use production work of housing services by renters Administrative and support service activities

Of which: Restaurants

£billions

Agriculture, forestry and fishery products

0.3

-

-

-

-

0.0

0.0

Ores and minerals; electricity, gas and w ater

0.6

-

0.1

0.7

27.0

1.0

0.0

-

-

-

0.2

2.5

-

-

6.1

71.4

0.0

0.4 -

5.8 -

0.6

0.0 -

of w hich: Water supply and miscellaneous services relating to the dw elling (COICOP 04.4.1 to 04.4. of w hich: Electricity, gas and other fuels(COICOP 04.5.1 to 04.5.5) of w hich: Operation of personal transport equipment (COICOP 07.2.) Food products, beverages and tobacco; textiles, apparel and leather products of w hich: Food products for the preparation of home meals (COICOP 01.1.1 to 01.2.1)

-

71.4

-

-

-

-

of w hich: Clothing and footw ear (COICOP 03.)

-

-

-

0.0

-

-

-

of w hich: Household Textiles (COICOP 05.2.0)

-

-

-

0.7

0.8

-

-

0.5

-

0.5

0.1

3.8

2.5

0.0

-

0.6

-

-

-

-

-

of w hich: Tools and equipment for house and gardens (COICOP 05.5)

-

-

-

0.1

0.1

-

-

of w hich: Goods and services for routine household maintenance COICOP(05.6.1 AND 05.6.2)

-

0.1

-

0.0

0.1

-

-

of w hich: Other recreational items and equipment, gardens and pets (COICOP 09.3.3)

-

-

-

3.8

3.8

-

-

Metal products, machinery and equipment of w hich: Household appliances (COICOP 05.3.1 to 05.3.3)

0.0

0.1

0.1

0.9

0.3

1.4

0.0

-

0.1

-

0.2

0.3

-

-

of w hich: Transport equipment (COICOP 07.1)

-

-

-

-

-

-

-

0.3

-

9.7

5.4

-

0.5

0.0

Other transportable goods, except metal products, machinery and equipment of w hich: Glassw are, tablew are and household utensils (COICOP 05.4)

Constructions and construction services of w hich: Maintenance and repair of the dw elling (COICOP 04.3.1 and 04.3.2) Distributive trade services; accommodation, food and beverage serving services; transport services; and electricity, gas and w ater distribution services

-

-

-

0.1

1.7

-

-

0.6

-

0.5

-

-

3.5

0.1

0.7

-

6.6

15.2

19.2

3.3

0.1

-

-

-

-

16.9

-

-

-

-

-

1.7

2.3

-

-

Business and production services of w hich: Repair of furniture, furnishings and floor coverings (COICOP 05.1.3)

0.7

0.8

0.8

1.8

1.6

2.6

0.0

-

-

-

0.2

0.1

-

-

Community, social and personal services of w hich: Other appliances, articles and products for personal care (ND) (COICOP 12.1.3)

2.0

-

5.2

2.9

2.3

28.7

0.5

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Financial and related services; real estate services; and rental and leasing services of w hich: Actual Rent paid by tenants (COICOP 4.1.1) of w hich: Insurance (COICOP 12.5.2 AND 12.5.4)

of w hich: Other personal effects (SD) (COICOP 12.3.2) Ow n-use production w ork of clothing services Ow n-use production w ork of travel services

-

-

-

-

-

-

-

Ow n-use production w ork of meal services

-

-

-

-

-

-

-

Ow n-use production w ork of housing services

-

25.4

-

-

-

-

-

Ow n-use production w ork of cleaning services

-

-

-

-

-

-

-

Ow n-use production w ork of adult care services

-

-

-

-

-

-

-

Ow n-use production w ork of childcare services

-

-

-

-

-

-

-

Ow n-use production w ork of repairing services

-

-

-

-

-

-

-

Ow n-use production w ork of laundry services

-

-

-

-

-

-

-

Ow n-use production w ork of pet care services

-

-

-

-

-

-

-

Ow n-use production w ork of gardening services

-

-

-

-

-

-

-

Total

11.8

97.6

23.5

27.1

54.1

44.2

0.7

Compensation of employees

8.8

-

9.1

-

-

33.5

2.3

Other taxes on production minus other subsidies on production

0.4

-0.6

-4.4

0.0

2.1

-0.7

Consumption of fixed capital

0.8 3.0

0.2

12.6

0.3

0.3

11.7

210.8

22.2

74.9

0.0

12.6

0.3 0.4

3.0

0.0

22.2

74.9

0.0

12.6

0.4

-

210.7

-

-

-

-

-

Value added, gross

12.9

211.0

43.2

70.9

0.4

59.9

2.4

Output

24.7 -

308.6 -

66.7 -

98.0 -

54.5 -

104.1 -

3.1 -

578 -

-

-

2,834 -

Ow n-use production w ork of meal planning and shopping services

Operating surplus and mixed income, net Return to capital Imputed compensation for labour input to ow n-use production w ork of services

million hours Hours w orked on education and training

Hours w orked in paid employment

795 -

Hours w orked in ow n-use production w ork of services

-

-

-

-

-

-

Leisure time

-

-

-

-

-

-

-

Other activities n.e.c.

-

-

-

-

-

-

-

86

24,658

283 -

Education

-

0.0

0.0

0.0

0.0

-

0.0

Ores and minerals; electricity, gas and w ater

-

1.2

0.3

2.1

0.6

-

0.8

-

-

-

-

-

-

-

-

0.7

0.2

2.1

0.6

-

0.0 0.8

of w hich: Water supply and miscellaneous services relating to the dw elling (COICOP 04.4.1 to 04.4. of w hich: Electricity, gas and other fuels(COICOP 04.5.1 to 04.5.5) of w hich: Operation of personal transport equipment (COICOP 07.2.) Food products, beverages and tobacco; textiles, apparel and leather products of w hich: Food products for the preparation of home meals (COICOP 01.1.1 to 01.2.1)

Of which: Preprimary and primary education and Human health and social work activities Of which: Residential care activities Own-use production work of adult care services Of which: Other social work activities without

Own-use production work of cleaning services

Agriculture, forestry and fishery products

£billions

-

-

-

-

-

-

-

of w hich: Clothing and footw ear (COICOP 03.)

-

-

-

-

-

-

-

of w hich: Household Textiles (COICOP 05.2.0)

-

-

-

-

-

-

-

-

3.8

0.9

18.0

5.3

-

6.5

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.2

-

-

-

-

-

-

Other transportable goods, except metal products, machinery and equipment of w hich: Glassw are, tablew are and household utensils (COICOP 05.4) of w hich: Tools and equipment for house and gardens (COICOP 05.5) of w hich: Goods and services for routine household maintenance COICOP(05.6.1 AND 05.6.2)

-

-

-

-

-

-

-

Metal products, machinery and equipment of w hich: Household appliances (COICOP 05.3.1 to 05.3.3)

of w hich: Other recreational items and equipment, gardens and pets (COICOP 09.3.3)

-

0.1

0.0

0.5

0.1

-

0.2

-

-

-

-

-

-

-

of w hich: Transport equipment (COICOP 07.1)

-

-

-

-

-

-

-

-

0.5

0.1

0.8

0.2

-

0.3

-

-

-

-

-

-

-

-

2.2

0.5

6.3

1.9

-

2.3

Constructions and construction services of w hich: Maintenance and repair of the dw elling (COICOP 04.3.1 and 04.3.2) Distributive trade services; accommodation, food and beverage serving services; transport services; and electricity, gas and w ater distribution services Financial and related services; real estate services; and rental and leasing services of w hich: Actual Rent paid by tenants (COICOP 4.1.1) of w hich: Insurance (COICOP 12.5.2 AND 12.5.4) Business and production services of w hich: Repair of furniture, furnishings and floor coverings (COICOP 05.1.3)

-

0.5

0.1

2.5

0.7

-

0.9

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.2

2.3

0.6

2.9

0.9

-

1.1

-

-

-

-

-

-

-

-

12.9

3.1

21.2

6.2

-

7.7

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Ow n-use production w ork of clothing services

-

-

-

-

-

-

-

Ow n-use production w ork of travel services

-

-

-

-

-

32.1

-

Ow n-use production w ork of meal services

-

-

-

-

-

15.4

-

Ow n-use production w ork of housing services

-

-

-

-

-

1.7

-

Ow n-use production w ork of cleaning services

-

-

-

-

-

-

-

Community, social and personal services of w hich: Other appliances, articles and products for personal care (ND) (COICOP 12.1.3) of w hich: Other personal effects (SD) (COICOP 12.3.2)

Ow n-use production w ork of adult care services

-

-

-

-

-

-

-

Ow n-use production w ork of childcare services

-

-

-

-

-

-

-

Ow n-use production w ork of repairing services

-

-

-

-

-

-

-

Ow n-use production w ork of laundry services

-

-

-

-

-

0.7

-

Ow n-use production w ork of pet care services

-

-

-

-

-

-

-

Ow n-use production w ork of gardening services

-

-

-

-

-

-

-

0.2

24.2

5.8

56.5

16.6

49.9

20.5

Compensation of employees

-

64.5

20.7

68.2

26.9

-

28.0

Other taxes on production minus other subsidies on production

-

1.2

-2.3

2.4

8.2

-10.1

9.4

3.6

128.9

0.3

2.5 0.1

18.1

1.5 7.4

-1.3 -

Ow n-use production w ork of meal planning and shopping services Total

Consumption of fixed capital Operating surplus and mixed income, net Return to capital

11.8

1.1 5.5 5.5

-

0.3

0.1

18.1

7.4

-

128.9

-

-

-

-

11.8

-

Value added, gross

128.9

75.5

21.0

92.2

43.9

10.5

24.5

Output

129.1 -

99.6 -

26.8 -

148.8 -

60.5 -

60.3 -

45.1 -

-

5,565 -

4,346 -

6,154 -

1,127 -

-

Imputed compensation for labour input to ow n-use production w ork of services

million hours Hours w orked in paid employment Hours w orked on education and training

15,085

656 -

-

-

-

-

1,379

-

Leisure time

-

-

-

-

-

-

-

Other activities n.e.c.

-

-

-

-

-

-

-

Hours w orked in ow n-use production w ork of services

87

Other service activities

Of which: Repair of personal and household goods Own-use production work of repairing services Of which: Washing and (dry-) cleaning of textile and fur Own-use production work of laundry services Of which: Other personal service activities n.e.c.

Own-use production work of childcare services

Agriculture, forestry and fishery products

-

0.0

0.0

-

0.0

-

0.0

Ores and minerals; electricity, gas and w ater

-

0.3

0.0

-

0.0

-

0.1

-

-

-

-

-

-

-

-

0.0 0.4

0.0 0.0

-

0.0

-

0.1

£billions

of w hich: Water supply and miscellaneous services relating to the dw elling (COICOP 04.4.1 to 04.4. of w hich: Electricity, gas and other fuels(COICOP 04.5.1 to 04.5.5) of w hich: Operation of personal transport equipment (COICOP 07.2.) Food products, beverages and tobacco; textiles, apparel and leather products of w hich: Food products for the preparation of home meals (COICOP 01.1.1 to 01.2.1)

-

-

-

-

-

-

-

of w hich: Clothing and footw ear (COICOP 03.)

-

-

-

-

-

-

-

of w hich: Household Textiles (COICOP 05.2.0)

-

-

-

-

-

-

-

-

1.0

0.0

0.3

0.0

1.3

0.3

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.0

-

-

0.1

-

0.1

-

-

-

-

0.3

-

1.3

-

Metal products, machinery and equipment of w hich: Household appliances (COICOP 05.3.1 to 05.3.3)

-

0.1

0.0

-

0.0

0.1

0.0

-

-

-

-

-

0.1

-

of w hich: Transport equipment (COICOP 07.1)

-

-

-

-

-

-

-

-

0.3

0.0

-

0.0

-

0.1

-

-

-

-

-

-

-

-

0.7

0.0

-

0.0

-

0.2

Other transportable goods, except metal products, machinery and equipment of w hich: Glassw are, tablew are and household utensils (COICOP 05.4) of w hich: Tools and equipment for house and gardens (COICOP 05.5) of w hich: Goods and services for routine household maintenance COICOP(05.6.1 AND 05.6.2) of w hich: Other recreational items and equipment, gardens and pets (COICOP 09.3.3)

Constructions and construction services of w hich: Maintenance and repair of the dw elling (COICOP 04.3.1 and 04.3.2) Distributive trade services; accommodation, food and beverage serving services; transport services; and electricity, gas and w ater distribution services

-

0.8

0.0

-

0.0

-

0.2

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Business and production services of w hich: Repair of furniture, furnishings and floor coverings (COICOP 05.1.3)

0.0

1.3

0.0

1.5

0.0

0.2

0.3

-

-

-

0.7

-

-

-

Community, social and personal services of w hich: Other appliances, articles and products for personal care (ND) (COICOP 12.1.3)

5.5

6.4

0.2

-

0.2

-

1.8

1.8

-

-

-

-

-

-

0.9

-

-

-

-

-

-

0.2

-

-

-

-

-

-

Financial and related services; real estate services; and rental and leasing services of w hich: Actual Rent paid by tenants (COICOP 4.1.1) of w hich: Insurance (COICOP 12.5.2 AND 12.5.4)

of w hich: Other personal effects (SD) (COICOP 12.3.2) Ow n-use production w ork of clothing services Ow n-use production w ork of travel services

41.7

-

-

-

-

-

-

Ow n-use production w ork of meal services

18.5

-

-

-

-

-

-

Ow n-use production w ork of housing services

13.5

-

-

-

-

5.1

-

Ow n-use production w ork of cleaning services

-

-

-

-

-

-

-

Ow n-use production w ork of adult care services

-

-

-

-

-

-

-

Ow n-use production w ork of childcare services

-

-

-

-

-

-

-

Ow n-use production w ork of repairing services

-

-

-

-

-

-

-

Ow n-use production w ork of laundry services

5.3

-

-

-

-

-

-

Ow n-use production w ork of pet care services

-

-

-

-

-

-

-

Ow n-use production w ork of gardening services

-

-

-

-

-

-

-

84.8

11.2

0.3

1.7

0.4

6.6

3.1 0.2

Ow n-use production w ork of meal planning and shopping services Total

-

13.7

0.2

-

0.2

-

0.3

0.2

1.0

140.5

11.4

7.6

0.0 0.5

-

Operating surplus and mixed income, net

0.0 0.3

-

0.5

Consumption of fixed capital

-12.1 -

59.8

0.3 3.6

-

11.4

0.3

-

0.5

-

3.6

140.5

-

-

7.6

-

59.8

-

Value added, gross

128.4

26.5

0.8

7.6

1.3

59.8

8.7

Output

213.2 -

37.7 -

1.1 -

9.3 -

1.7 -

66.4 -

11.7 -

-

-

-

Compensation of employees Other taxes on production minus other subsidies on production

Return to capital Imputed compensation for labour input to ow n-use production w ork of services

million hours Hours w orked in paid employment

-

Hours w orked on education and training

16,443

660 -

50 -

49

4.5

114 -

-

-

887

-

6,993

-

Leisure time

-

-

-

-

-

-

-

Other activities n.e.c.

-

-

-

-

-

-

-

Hours w orked in ow n-use production w ork of services

88

Rest of the economy

Own-use production work of pet care services Activities of households as employers; Of which: other activities of households as employers of domestic personnel Own-use production work of gardening services Own-use production work of meal planning and Of which: other activities of households as

£billions

Agriculture, forestry and fishery products

-

-

-

-

-

-

3.3

Ores and minerals; electricity, gas and w ater

-

-

-

-

-

-

54.3

-

-

-

-

-

-

-

-

-

-

-

-

-

-

10.1

of w hich: Water supply and miscellaneous services relating to the dw elling (COICOP 04.4.1 to 04.4. of w hich: Electricity, gas and other fuels(COICOP 04.5.1 to 04.5.5) of w hich: Operation of personal transport equipment (COICOP 07.2.) Food products, beverages and tobacco; textiles, apparel and leather products of w hich: Food products for the preparation of home meals (COICOP 01.1.1 to 01.2.1)

-

-

-

-

-

-

-

of w hich: Clothing and footw ear (COICOP 03.)

-

-

-

-

-

-

-

of w hich: Household Textiles (COICOP 05.2.0)

-

-

-

-

-

-

-

2.5

-

-

5.0

-

-

100.9

-

-

-

-

-

-

-

-

-

-

0.1

-

-

-

of w hich: Goods and services for routine household maintenance COICOP(05.6.1 AND 05.6.2)

0.0

-

-

0.0

0.0

-

-

of w hich: Other recreational items and equipment, gardens and pets (COICOP 09.3.3)

2.5

-

-

5.0

-

-

-

Other transportable goods, except metal products, machinery and equipment of w hich: Glassw are, tablew are and household utensils (COICOP 05.4) of w hich: Tools and equipment for house and gardens (COICOP 05.5)

Metal products, machinery and equipment of w hich: Household appliances (COICOP 05.3.1 to 05.3.3)

-

-

-

-

-

-

9.0

-

-

-

-

-

-

-

of w hich: Transport equipment (COICOP 07.1)

-

-

-

-

-

-

-

-

-

-

-

-

-

67.4

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

60.2

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.0

-

-

0.1

0.0

-

53.9

-

-

-

-

-

-

-

-

-

-

-

-

-

157.6

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Constructions and construction services of w hich: Maintenance and repair of the dw elling (COICOP 04.3.1 and 04.3.2) Distributive trade services; accommodation, food and beverage serving services; transport services; and electricity, gas and w ater distribution services Financial and related services; real estate services; and rental and leasing services of w hich: Actual Rent paid by tenants (COICOP 4.1.1) of w hich: Insurance (COICOP 12.5.2 AND 12.5.4) Business and production services of w hich: Repair of furniture, furnishings and floor coverings (COICOP 05.1.3) Community, social and personal services of w hich: Other appliances, articles and products for personal care (ND) (COICOP 12.1.3) of w hich: Other personal effects (SD) (COICOP 12.3.2) Ow n-use production w ork of clothing services

56.7

Ow n-use production w ork of travel services

-

-

-

-

32.1

-

-

Ow n-use production w ork of meal services

-

-

-

-

-

-

-

Ow n-use production w ork of housing services

-

-

-

-

-

-

-

Ow n-use production w ork of cleaning services

-

-

-

-

-

-

-

Ow n-use production w ork of adult care services

-

-

-

-

-

-

-

Ow n-use production w ork of childcare services

-

-

-

-

-

-

-

Ow n-use production w ork of repairing services

-

-

-

-

-

-

-

Ow n-use production w ork of laundry services

-

-

-

-

-

-

-

Ow n-use production w ork of pet care services

-

-

-

-

-

-

-

Ow n-use production w ork of gardening services

-

-

-

-

-

-

-

2.5

-

-

5.1

32.1

-

573.5

Ow n-use production w ork of meal planning and shopping services Total

-

Compensation of employees

-

4.6

3.8

-

-

0.8

338.0

Other taxes on production minus other subsidies on production

-

-0.0

-0.1

31.9

-

-

-0.8

-

-

-

75.7

16.9

0.3

0.2

15.2

23.4

-

185.2 185.2

Consumption of fixed capital Operating surplus and mixed income, net Return to capital

-

0.3

0.2

-

-

-

16.9

-

-

15.2

23.4

-

-

Value added, gross

16.9

4.9

3.9

15.2

23.4

-

630.8

Output

19.4 -

4.9 -

3.9 -

20.3 -

55.5 -

-

1204.3

-

-

Imputed compensation for labour input to ow n-use production w ork of services

million hours Hours w orked in paid employment

-

-

1,978

-

-

1,775

2,740

-

-

Leisure time

-

-

-

-

-

-

-

Other activities n.e.c.

-

-

-

-

-

-

-

Hours w orked in ow n-use production w ork of services

89

58

-

-

Hours w orked on education and training

58

58

18,237

-

-

14.2

-

-

1.0

2.1

17.3

31.3

48.4

-

-

-0.6

12.5

60.3

173.2

2.8

1.8

-

-

-

-

1.8

7.3

6.2

2.4

-

-

-

-

2.4

14.5

18.1 120.3

7.8 23.8

-

-

0.8

14.7

7.8 39.3

25.9 157.3

of w hich: Water supply and miscellaneous services relating to the dw elling (COICOP 04.4.1 to 04.4. of w hich: Electricity, gas and other fuels(COICOP 04.5.1 to 04.5.5) of w hich: Operation of personal transport equipment (COICOP 07.2.) Food products, beverages and tobacco; textiles, apparel and leather products of w hich: Food products for the preparation of home meals (COICOP 01.1.1 to 01.2.1)

Total use at purchasers' prices

Total final uses at purchasers' prices

14.0 112.9

Gross capital formation

Total exports

Final consumption expenditure by households Final consumption expenditure by nonprofit organisations Final consumption expenditure by government

Total intermediate uses

Agriculture, forestry and fishery products Ores and minerals; electricity, gas and w ater

£billions

71.4

-

-

-

-

-

-

71.4

of w hich: Clothing and footw ear (COICOP 03.)

2.2

0.9

-

-

28.6

26.0

55.6

57.8

of w hich: Household Textiles (COICOP 05.2.0)

1.5

-0.1

-

-

-

-

-0.1

1.5

265.0

125.5

-

11.5

32.3

137.8

307.1

572.1

Other transportable goods, except metal products, machinery and equipment of w hich: Glassw are, tablew are and household utensils (COICOP 05.4)

0.6

5.2

-

-

-

-

5.2

5.8

of w hich: Tools and equipment for house and gardens (COICOP 05.5)

0.3

0.0

-

-

0.2

-

0.2

0.6

of w hich: Goods and services for routine household maintenance COICOP(05.6.1 AND 05.6.2)

0.7

2.5

-

-

-

-

2.5

3.2

of w hich: Other recreational items and equipment, gardens and pets (COICOP 09.3.3)

16.6

8.5

-

-

-

-

8.5

25.1 45.7

Metal products, machinery and equipment of w hich: Household appliances (COICOP 05.3.1 to 05.3.3)

32.7

8.3

-

-

37.2

20.7

34.3

0.7

0.2

-

-

1.2

-

1.3

2.0

of w hich: Transport equipment (COICOP 07.1)

-

7.9

-

-

21.7

-

29.6

29.6

89.5

1.3

-

-

102.6

2.1

106.1

195.5

1.8

1.2

-

-

-

-

1.2

4.8

121.1

124.0

-

2.1

21.7

27.3

175.2

296.3

128.1

247.8

0.2

-

7.0

52.0

307.0

428.8

16.9

7.3

-

-

-

-

7.3

24.2

-

-

-

-

-

-

-

-

Business and production services of w hich: Repair of furniture, furnishings and floor coverings (COICOP 05.1.3)

85.4

82.7

-

4.1

55.1

44.5

186.4

341.7

1.0

27.3

-

-

0.7

9.6

37.6

38.6

Community, social and personal services of w hich: Other appliances, articles and products for personal care (ND) (COICOP 12.1.3)

283.6

90.9

42.3

253.3

31.7

61.4

479.6

760.5

Constructions and construction services of w hich: Maintenance and repair of the dw elling (COICOP 04.3.1 and 04.3.2) Distributive trade services; accommodation, food and beverage serving services; transport services; and electricity, gas and w ater distribution services Financial and related services; real estate services; and rental and leasing services of w hich: Actual Rent paid by tenants (COICOP 4.1.1) of w hich: Insurance (COICOP 12.5.2 AND 12.5.4)

-

-

-

-

-

-

-

-

0.2

4.2

-

-

-

-

-

-

Ow n-use production w ork of travel services

105.9

214.9

-

-

-

-

-

-

Ow n-use production w ork of meal services

33.9

308.5

-

-

-

-

-

-

Ow n-use production w ork of housing services

45.7

123.6

-

-

-

-

-

-

Ow n-use production w ork of cleaning services

-

129.1

-

-

-

-

-

-

Ow n-use production w ork of adult care services

-

61.6

-

-

-

-

-

-

Ow n-use production w ork of childcare services

-

222.6

-

-

-

-

-

-

of w hich: Other personal effects (SD) (COICOP 12.3.2) Ow n-use production w ork of clothing services

Ow n-use production w ork of repairing services

-

8.6

-

-

-

-

-

-

Ow n-use production w ork of laundry services

6.0

60.3

-

-

-

-

-

-

Ow n-use production w ork of pet care services

-

19.4

-

-

-

-

-

-

Ow n-use production w ork of gardening services

-

20.3

-

-

-

-

-

-

Ow n-use production w ork of meal planning and shopping services

-

55.5

-

-

-

-

-

-

Total

1444.3

1995.7

42.5

271.0

288.9

375.1

Compensation of employees

674.5

Other taxes on production minus other subsidies on production

39.2

Consumption of fixed capital

166.0

Operating surplus and mixed income, net

1261.8

1712.5 3002.4

365.0

Return to capital

896.8

Imputed compensation for labour input to ow n-use production w ork of services

2141.5

Value added, gross

3585.8

Output

Total hours

million hours Hours w orked in paid employment

67,716

Hours w orked on education and training

14,423

Hours w orked in ow n-use production w ork of services

104,925

Leisure time

118,203

Other activities n.e.c.

140,379

Note: Please note that the sub classification of COICOP-groups is only an approximation, for illustrative purposes. Not the whole COICOP (sub)group may fall within the perimeters of the main heading of the use table.

90

Chap pter 5

Imple ementa ation an nd Mea asurem ment Challe enges

5.1 In ntroducction to the cha apter 222. C Chapter 5 exxamines issuues surroundding the meeasurement of own-use productionn work

of serviices and discusses varioous approacches to colleecting to infformation on o the measuurement of inputts. This chap apter then hiighlights a range r of posssible indicaators for ow wn-use prodduction work off services, and a how theey might be useful for policymaker p rs. Finally, the Guide provides p recomm mendations regarding r thhe frequency of producction and thee level of deetail for estiimates of own--use producction work of o services.

5.2 The mea T asureme ent of in nputs 5.22.1 Alternative so ources fo or measurring labo our inputt 223. The guidancee within Ch hapter 3 noteed the generral preferen nce that a deedicated TU US is

used as the source for informaation on labo our input thhrough own use provisiion of servicces However, th he term "tim me-use surveey" does nott refer to a single s narroow set of work. H methoddologies, and d applies to many diffeerent approaaches, somee of which are a discussed below. 224. Itt is generally y assumed that t a houseehold surveyy will measure the laboour input to own

use provvision of seervices. Theere is not yett any widelyy applicablee alternativee (e.g., big data, d adminisstrative dataa) which achhieves compprehensive, high qualitty measuress of time speent on those acctivities. Soome other opptions, suchh as experiennce samplin ng and direcct observation, do exist buut will not be b suitable for fo measurem ment of ownn use provission of serv vices so theyy are not connsidered furtther in this rreport. 225. H However, it is i worth disscussing thee alternativee methodolo ogies that coould be usedd in

househoold surveys to collect innformation on the timee use and th he associatedd strengths and weakneesses. The primary reasson for this is i the relativve cost and complexity y of completing a dedicateed TUS of the t type outtlined in thee guides. Thhis cost and complexity y largely acccounts for the rrelative rariity of dedicaated TUSs both b in the developed d a developping worlds,, albeit and the focuus on them and a their cooverage is inncreasing ovver time. Th he availability of alternnative, less cosstly, methodds which couuld producee comparable results to o time-use su urveys wouuld offer the poteential to increase the cooverage of information i n on time speent in own use u provisioon of servicess. It would be b particulaarly beneficiial if these methods m cou uld be impllemented as addons to existing e surv veys, whichh would offeer a substanntial cost savving versus a full standd-alone time-usse survey.

91

5.22.2 Methodologiccal choice es in desiigning a ssurvey to o measurre time use 226. In n broad term ms, the mainn choices whhich have too be made in i designing g survey insstrument

for the m measurement of time use u are: 

r The T optionss here are a diary versuus stylized Approacch to data recording: questionss. o Diary D approoach: Diaryy approachees are most typical t used d in TUSs but b various v appproaches hav ve been takeen. Diaries generally cover the fulll 24 hour h periodd of a day bu ut can vary from presennting a full timeline wiith the activities a too be recordeed against eaach time period using fixed f intervaals (ranging ( froom 5 minutees to 60 minnutes), or a more stylizzed approachh which asks a responndents to reccord the starrt and end time of eachh activity performed. p A further variation v relates to whether a list of activities is i presented p too the responndent (referrred to as a light l diary inn the guidess) or the respondent r can enter acctivities as open endedd text which h will be subsequentlly coded (reeferred to ass a full diaryy). o Stylized S queestions: Thiis approachh involves assking the reespondent too report time t spent on o activitiess retrospectiively using a set of pree-defined acctivities. o Recording R of secondarry/simultan neous activiities: Depennding on thee measureme m nt objectivees of the surrvey it may be desired to record a annd this is an important consideratio c on in the chooice of secondary activities approach a too data recordding. For exxample, ligh ht diaries crreate compliications for f the recoording of seccondary acttivities that tend to be more m easily incorporate i ed in full diaaries.





Data colllection mod de: Diary appproaches can c involve either perso onal interviews or diaries beeing left behhind and subbsequently collected. Stylized S queestions will generally y involve a personal p intterview (by telephone or o face to faace). Web collectionn is an emerrging optionn - not yet extensively e used for tim me use data offering clear c potenttial both forr stylized quuestions or diary d approaaches. Referencce period: Generally, G diaries d will involve recording activvities over a oneday periood. This cann either be based b on reccall (yesterdday diary) orr be compleeted for the day after a the inteerview (tom morrow diaryy). The reference period for stylizeed questionss will be a retrospectivee period as defined for the survey in questionn (generally y 1 or 7 dayys before the interview). Data collection shouuld also takee into account the t seasonallity of own--use producttion work of o services, such s as garddening and childdcare which are likely to t take placee during sum mmer months and holidday weeks resspectively.

227. The range off different op ptions outliined above create c a widde range of possible

approacches to captuuring inform mation on tiime spent on own use provision p off services. To T simplifyy the task of discussingg these alterrnatives, this chapter will w assess thhree approacches illustrattive of the range of options availabble - from a full time-uuse survey too stylized quuestions in a genneral-purposse householld survey. These T approaches are: aa) A full tim me use survvey involvinng a full diaary and desiigned primaarily to captuure informattion on timee use. bb) A light diary d used through t a hoousehold suurvey that haas not been designed primarily to captuure informattion on timee use (e.g., a labour forcce survey). 92

cc) A houseehold surveyy on any puurpose including stylizeed questionss on time sppent on a pre-deefined list off activities (e.g., ( an inccome and exxpenditure survey s with question ns on time spent on hou usehold servvices).

5.22.3 Summ mary asse essment of different apprroaches 228. B Both the UN N Guide (20005) and the UNECE Guuidelines (22013) discusss the data quality q

and cosst implicatioons of differrent approacches in diffeering levels of detail. The T main conclussions are sum mmarised inn Table 5.1 below: Table 5.1 ment of diff fferent apprroaches to collection information i n on time use u Assessm Approacch

Commentts on data qu uality

Full TUS S (best practice approach identifiedd in UNECE Guidelines (2013))

Generally considered too be the best qualitty. Open-endeed recording of activities and a times g flexibbility in gives the greatest analysis. The T full diaryy also makes reco ording of seccondary activities easier e versus a light time diaryy. The additionnal contextuall information collected in the perssonal interview allows for an in- depth d analysiis of time use and itss impact on thhe householdd. Where thee particular innterest is understandding use of tim me, an additional benefit is thaat a range mentary questtions to of supplem support annalysis can bee added through peersonal intervviews administerred additionallly to the diary. n can arise forr A concern respondennts with low liiteracy, as they are reequired to wriite out all their activiities accurateely enough to allow suubsequent codding of those activvities.

93

Comments on respondeent d cost burden and Respondent burden is higgh in this approach as the full surveey is dedicated too detailed measuremen nt of time usee and the respondent must m record all a activities. Cost is also high as a deddicated g survey is used and will generally ment not meet othher measurem objectives without w creatinng even higher burdeen on the resppondent and risking data d quality. Even after data co ollection, the processing of o data is resoource intensive duue to the openn-ended information on activities that ded to allow for f must be cod analysis.

Approach

Comments on data quality

Light time diary with a household survey

Considered to give good quality information but limited to a predefined set of activities. The UN Guide (2005) suggests that an upper limit of 30 activities should be covered and these activities could be limited to those of interest for a specific purpose. However, evidence suggests that a bias may arise if the list of activities does not comprehensively cover each 24 hour period so this needs to be borne in mind in designing the list of activities. The quality of data will be dependent on how well the respondents are able to relate their activities to the list presented, so careful testing of the activity list will be needed. A benefit of a light time diary could be the use of the same set of activities across countries thereby aiding the comparability of the statistics produced without requiring a major coding effort. A standard classification (ICATUS 2016) was developed by UNSD.

Stylized questions in a household survey

Both the UN Guide (2005) and the UNECE Guidelines (2013) outline the quality concerns surrounding the use of stylized questions quoting evidence from different studies. A number of studies note an overestimation of time spent in gainful and domestic work when stylized questions are used. This is of clear concern to any efforts to value own use provision of services. The relative lack of detail collected will also limit the analytical value of the data. However, if the main measurement objective is to obtain information on total time spent on different pre-defined activities then stylized questions could prove sufficient for this purpose if other quality concerns could be addressed.

94

Comments on respondent burden and cost Respondent burden is lower than a full TUS that attempts to cover all activities over a 24-hour period. When considered globally, although attaching a light time use diary to a household survey designed for another purpose does increase overall respondent burden, the burden is lower than two separate dedicated surveys, although this Guide does recognise that there will be some increase in responder burden. This approach can also be easier for respondents with low levels of literacy. Cost is also lower as the diary is attached to a survey being performed for another purpose. Depending on the approach chosen, cost could still be relatively high if repeat visits are required to collect diaries. Processing of the data is substantially less resource intensive than a full diary given that the activities are pre-coded.

Respondent burden is the lowest of the different approaches as the information is collected during a personal interview through a relatively short set of questions that only ask for total amount of time spent over a given period. Cost is the lowest of the different options, as separate diaries do not need to be printed and no repeat visits will be required. Depending on the approach taken to the light diary approach the cost difference may be very large or relatively small. The amount of data to be processed will also generally be the least of the different approaches.

229. W While a dediicated time-use survey incorporatinng a full diaary is desiraable to give the

highest quality resu ults, a light time diary attached to a household d survey is a promisingg ways the casse, care is needed n in thee design of the instrum ment and alternattive. Howevver, as is alw the modde of application. Specific recomm mendations for light tim me diary app proaches aree:   

The numbber of pre-ccoded activiities should be sufficiennt to respon nd to data neeeds, but shoulld also coveer all activitiies to avoidd the effects of social deesirability. The recorrding of at least l one paarallel activiity with resppondents in ndicating whhich activity thhey regard as a the primaary one. Assistancce from inteerviewers is needed to assure a data quality

230. A As mentioned in Chapteer 3, a numb ber of internnational ageencies are in nterested in

developping and tessting alternaative time usse collectionn approachees to develoop further evvidence on theirr relative strrengths and weaknesses. The Taskk Force encoourages succh work as it can providee a basis for reviewing and updatin ng existing guidance, g particularly with w referennce to the com mparability of o different approachess and how thhey may be used to suppplement eaach other ovver time. 231. Su uch evidencce as is avaiilable suggeests that styllized questiions cannot be recomm mended

as an appproach to generate g higgh quality estimates of time spent on own usee provision of o servicess. In additio on to carefullly selectingg and designning the datta collection n instrumennt, a wide raange of otheer methodoloogical choicces (such ass collection mode, weigghting methoddology etc.) will need too be carefullly considerred. The UN N Guide (2005) and thee UNECE E Guidelinees (2013) prrovide furtheer detail on these issues.

5.22.4 Classification of activities to be e measurred 232. In n the case off a full diaryy, the issue of the rangge of measurred activitiees does not arise. a

Howeveer, the codinng of activities still neeeds to allow w analysis off the data, assignment a t a to classificcation and subsequent s estimation of o values byy applicatioon of an app propriate priice or cost esttimate. A ligght time diaary and styliized questioons will bothh involve thhe pre-codinng of activitiees. Thereforre, despite thhe differentt approachees a clear claassification of activitiess is requiredd regardlesss of the dataa collection approach chosen. Furtthermore, appplication of o a common classificaation will bee critical to comparabili c ity of data across a counttries. 233. The Internatiional Classiification of Activities A fo for Time Use Statistics (ICATUS) –

endorseed by the Unnited Nationns Statisticaal Commission in Marcch 2017 - is a common classificcation for thhe main inteernational reeference. Another A classsification avvailable is thhe Harmonnized Europpean Time Use U Survey (HETUS) pprepared by y Eurostat.144 The UNEC CE Guideliines (2013) include recommendations for a brroad activityy classificattion of time use based oon assessments of ICAT TUS and HE ETUS, and on policy needs. n Plans are developped to update HETUS H witth referencee to ICATU US for futuree rounds of time use su urveys in Euurope. 234. O One clear ben nefit of ICA ATUS 20166 is that it haas been developed withh reference to t the

forms of o work fram mework agreeed at the 19th ICLS, crreating a cleear correspo ondence bettween the diffe ferent formss of work annd ICATUS. 235. A At the top lev vel, ICATU US includes nine activitty domains as outlined in Table 5.22.

14

Eurostaat. 2009. Harm monized Euroopean time usee surveys: 20008 Guidelines.. Luxembourg g.

95

Table 5.2 ICATU US 2016 cla assification – top level 1 – Empployment annd related activities a 2 – Prodduction of goods g for ow wn final usee 3 – Unppaid domesttic services for househo old and fam mily memberrs (own-usee productionn work off services) 4 – Unppaid care givving servicees for houseehold and faamily membbers (own-uuse productiion work off care servicces) 5 – Unppaid volunteeer, trainee and other unpaid u workk 6 – Leaarning 7 – Soccializing andd communiccation, comm munity partticipation an nd religiouss practice 8 – Cultture, leisuree, mass meddia and sporrts practicess 9 – Selff-care and maintenance m e 236. There is a cleear link betw ween the fo orms of workk frameworrk and the fiirst five cateegories

at the toop level of ICATUS I 20016. Own usse provisionn of services is split bettween categgory three annd category four while volunteer work w is part of categoryy five. 237. A At the next leevel of ICA ATUS the deelineation of the forms of work becomes clearr with

volunteeer work beiing coveredd by two categories (51 – unpaid diirect voluntteering for other o househoolds and 52 – unpaid coommunity – and organnization-based volunteeering). As suuch anyone applying IC CATUS 20116 down to at least the second digit level willl be able to d services annd volunteeer work from m other actiivities. separateely identify own use prrovision and 238. This Guide recommendss to use ICA ATUS 20166 as the prim mary classifiication for

collection and repo orting of tim me use data.

96

Annex 5.1: Comparison of existing and recommended international activity classifications for measuring time use (mapped to ICATUS 2016) ICATUS 2016

HETUS

UNECE

MD1 – Employment and related activities

1 – Employment 1/

Employment

910 – Travel to/from work

Travel

MD2 – Production of goods for own final use

62 – Productive exercise 311– Food preparation, baking and preserving (also includes activities under ICATUS, MD3) 333 – Handicraft and producing textiles 341 – Gardening (also includes activities under ICATUS, MD3) 342 – Tending domestic animals 351 – House construction and renovation 353 - Making, repairing and maintaining equipment

MD3 – Unpaid domestic services for household and family members (own-use production work of services)

312 – Dish washing

Housework

32 – Household upkeep

Meal preparation

331 – Landry

Travel

332 – Ironing 339 – Other or unspecified making of and care for textiles 342 – Tending domestic animals 343 – Caring for pets 344 – Walking the dog 349 – Other or unspecified gardening and pet care 352 – Repairs to dwelling 353 – Making, repairing and maintaining equipment 354 – Vehicle maintenance 359 – Other or unspecified construction and repairs

97

361– Shopping 362 – Commercial and administrative services 369 – Other or unspecified shopping and services 37 – Household Management MD4 – Unpaid care giving services for household and family members (own-use production work of care services)

38 – Childcare

Childcare

39 – Help to an adult family member

Caring for adults and people with disability

423 – Care of own children living in another household

Travel

424 – Other childcare as help to another household 425 – Help to an adult of another household 429 – Other or unspecified informal help to another household 938 – Travel related to childcare MD5 – Unpaid volunteer, trainee and other unpaid work

41 – Organisational work 421 – Construction and repairs as help 422 – Help in employment and farming 424 – Other childcare as help to another household 425 – Help to an adult of another household

Volunteering organization based (may be formal or informal organizations) Direct volunteering - for other households or other people generally Travel

429 – Other or unspecified informal help to another household 939 – Travel related to other household care 940 – Travel related to voluntary work and meetings MD6 – Learning

MD7 – Socializing and communication, community participation and religious practice

2 – Study

Education

920 – Travel related to study

Travel

432 – Religious activities

Culture and leisure participation

439 – Other or unspecified participatory activities 51 – Social life

98

Travel

713 – Correspondence 723 – Communication by computing 950 – Travel related to social life MD8 – Culture, leisure, mass media and sports practices

52 – Entertainment and culture 53 – Resting-Time out 61 – Physical exercise 63 – Sports related activities 711 – Arts (visual, performing, literary)

Culture and leisure participation Crafts and hobbies Sports participation Reading Travel

712 – Collecting 719 – Other or unspecified hobbies 722 – Information by computing 729 – Other or unspecified computing 73 – Games 8 – Mass media 960 – Travel related to other leisure 998 – Unspecified leisure time MD9 – Self-care and maintenance

0 – Personal Care

Sleeping

121 – Lunch break

Personal care

363 – Personal services

Travel

MD = Major Division Notes: 1/ HETUS, under employment, has category 121 Lunch break. Breaks during employment in ICATUS 2016 are restricted to hours actually worked within the production boundary. Longer meal breaks such as lunch are beyond the production boundary, and therefore, considered under 921 Eating meals/snack and 922 Drinking other than with meal or snack (ICATUS 2016 (page 131): https://unstats.un.org/unsd/statcom/48thsession/documents/BG-3h-ICATUS-2016-13-February-2017-E.pdf).

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Chap pter 6

Reporrting

6.1 In ndicators of ow wn‐use p production worrk of serrvices fo or p policy se etting 239. U Understandinng processees and dynam mics withinn own-use prroduction work w of servvices is

crucial for policym makers. Thiss is due to thheir responssibility to foormulate efffective sociaal policiess that act as adequate inncentives too the populaation. Therefore, it is inndispensablee to providee them with meaningfull indicators that optimaally reflect reality. r Thiss section preesents a summarry of such in ndicators. By B and largee, indicatorss are groupeed into geneeral indicatoors indicatoors that can be applied to any houssehold functtion - and sppecific - onnes that appply to particullar functions only. Thiss analysis was w establishhed based on six countrry replies too the “UNEC CE Questionnnaire on Unnpaid Houssehold Serviice Work”155: Australia,, Canada, Finland, New Zeealand, Unitted Kingdom m and Uniteed States. Inndicators puublished by OECD werre also consideered.

6.11.1 Gene eral indiccators 240. A As mentioned above, geeneral indicaators are appplicable to own-use o pro oduction woork of

servicess in general as well as to t any of itss specific fuunctions. Am mong these are housingg, nutritionn, clothing, adult and childcare c an nd transport. Overall, geeneral indiccators fall innto five broad categories: hours, h valuee, inputs, connsumption and taxes. The T analysiss will consider i order to identify i reliiable key inndicators. these inndividually in 6.1.1.1 Output 6.1.1.1.1 Hours 241. To date, various country y publicationns have useed the hourss spent on ow wn-use prodduction

work off services acctivities as indicators i (ee.g., Unitedd Kingdom, Canada, an nd New Zeaaland) and OE ECD. Table 6.1 summarrises the moost frequenttly used indiicators. Table 66.1 Indicattors for measuring ph hysical volu ume of own-use produ uction work k of services Indicattor

Source

Total hoours devoteed to own-usse productioon work of serviices activitiees per year//month/weekk/day

Australia, Canada, C Neew Zealand,, Switzerlan nd, United Kingdom, K U United States

Average hours per year/monthh/week/day per person

Canada, Sw witzerland, United Kinngdom, United Staates, OECD

15

The puublications sugggested by Coolombia, Hunggary, Japan, Mexico M and Noorway within the t “UNECE Questionnnaire on Unpaaid Householdd Service Worrk” could not be included as a they were onnly available in i the respectivve national lan nguage.

100

Indicattor

Source

(Averagge) hours deevoted to ow wn-use prod duction work off services acctivities/(avverage) hourrs spent on form mal working g activities

Australia, Canada, C OE ECD

(Averagge) hours deevoted to sppecific areass or total own-use production work of services s actiivities

Australia, Canada, C OE ECD

Ratio off output prooduced by household h coompared to markket. E.g., rattio of inform mal to formaal childcarre hours.

United Kinngdom

242. O On the one hand, h these indicators i can be used with w respecct to own-usse productioon work

of serviices in geneeral. For exaample, Austtralia reported in 2006 that t the totaal unpaid ow wn-use producttion work off services am mounted to 25.23 hourrs per week on averagee. On the othher hand, thhe applicatioon to speciffic householld functionss is also posssible, such as the United Kingdoom stating thhat people provided p 8.11 billion houurs of adult care in 20114. These nuumbers are partticularly useeful for poliicymakers as a they give them an ov verview of how h the poppulation distribuutes its time. This, in tuurn, allows them t to uncover adversse patterns and a shape approprriate policiees in return. 6.1.1.1.2 2 Value 243. A Another cateegory of inddicators is thhe value of oown-use pro oduction woork of services.

Those indicators arre summarissed in Tablee 6.2 below w. Table 66.2 Indicattors for measuring thee value of own-use o production work w of servvices Indicattor

Source

Total vaalue of own n-use producction work of servicess (as percenntage of GD DP)

Australia, Canada, C Finnland, Uniteed Kingdom, United Stattes, OECD

Value oof own-use production p work of serrvices per person (as ( percentaage of GDP P per capita))

Canada

GDP (pper capita) with/withou w t own-use producttion work off services (pper person)

Finland, OECD, Uniteed Kingdom m

Average annual groowth in GD DP (per capiita) includinng own-use productionn work of seervices

OECD, Unnited Kingdom

244. These indicaators are universally ack knowledgedd. In its worrking paper “Incorporatting

Estimatted of Household Produuction of Non-Market Services”, the t OECD highlights h thhat as of 2011 thhe value of own-use o prooduction woork of servicces as a percentage of GDP G was approxiimately 50% % in Finlandd and 40% in i Canada aaccording to o the opportu unity cost approacch (OECD, 2011b). Aggain, these inndicators haave also beeen utilized in i narrower contexts: In particuular, the Unnited Kingdoom househoold laundry service GV VA (output minus m umption) in 2014 was equal e to £822.8 billion, i.e. i 4.6% off GDP. intermeediate consu Furtherm more, the OECD O statess that annuaal GDP grow wth includinng own-use productionn work of serviices (in term ms of 2008 pprices) in thhe United Sttates betweeen 1975 andd 2008 was 2.7% when coonsidering the t replacem ment cost appproach in comparison c n to a growth h of 3.1% when w consideering officiaal GDP statiistics. Similarly, the Unnited Kingddom Househhold Satellitte 101

Accounnt (2016) hig ghlights thaat including own-use prroduction work w of servvices within GDP increasees its averagge annual grrowth 0.3 percentage p p points betweeen 2005 annd 2014, froom 3.5% to 3.8% %. 6.1.1.2 Inputs 245. The inputs in nto own-usee productionn work of seervices can also derive meaningfull

indicatoors. In this regard, r the labour l invessted is pivottal. 6.1.1.2.1 Labour 246. The labour devoted d to own-use production worrk of servicces does nott receive reaal-

market compensatiion. Still, inndicators takking into account the fo oregone wagge bill are meaningful (Table 6.3). Table 66.3 Indicattors for measuring lab bour devoteed to own-u use producction work of services Indicattor

Source

Value oof labour costs in own-uuse producttion work of serviices (by opp portunity or replacemennt cost approacch) (as perceentage of GDP/total G waage bill)

Finland, Sw witzerland, OECD

Average wage ratee of persons engaged ow wn-use producttion work off services acctivities e.gg., $/hr (as Australia, Canada, Finnland, Switzzerland, a percenntage of thee wages of all a employed d United Staates workerss/workers of a specific sector) Differennce betweenn the averagge hourly wages w of all workkers and of persons enggaged in ow wn-use producttion work off services acctivities

United Staates

247. Fo or example, the Unitedd States estim mated that the t average wages of household h w workers

engagedd in own-usse productioon work of services s as a percentage of the wagges of all employyed workers has declineed graduallyy over time and was sliightly below w 30% as off 2009. This am mounts to a difference d o approxim of mately $20 per p hour in absolute a term ms. Australlia providees detailed statistics s witth respect to o this indicaator as well,, utilizing thhe replacem ment cost approacch (Figure 6.1). 6

102

Figure 66.1 Averagge weekly hours h and wage w rate by b householld function n, 2006

Source: A Australian Buureau of Statisttics (ABS) Tim me Use Surveey (TUS), 20006 and Survey of Employee Earnings and Hourrs (EEH), 200 06

6.1.1.2.2 2 Consumption 248. In n addition too the producction side of own-use production p work w of servvices, its

consum mption side may m also bee consideredd. The follow wing indicaators are avaailable: Table 66.4 Indicattors for measuring hoousehold co onsumption n of own-usse productioon work off services Indicattor

Source

Househhold consum mption of ow wn-use prodduction of OECD servicess work (as percentage p o GDP) of Househhold consum mption of ow wn-use prodduction of servicess work relattive to the consumption c n of Finland market goods and services s 103

249. A As becomes evident from m the indicaated sources, very few reports havve referred to t this

type of indicator. OECD O (2011b) presents the total consumption c n of own-usse productioon of 08 (Figure 6.2). servicess work in vaarious counntries in 200 Figure 66.2 Total h household consumptio c on of own-u use producttion of servvices work, 2008 (Purchassing power parities, p United States = 100) 1

Source: O OECD (2011b b).

250. A As indicated above, onee may also consider c thee consumption ratio of own-use o

producttion of serviices work too market serrvices. For instance, Fiinland reporrts that housseholds producee and consu ume €32 billlion of own-use producction work of o meal serv vices. This is i 57% of overaall meal prooduction, reflecting moore producedd within thee home as oppposed to having h meals outside o the house. h 6.1.1.2.3 3 Taxes 251. A Another apprroach to invvestigate thee size and nature of ow wn-use produuction workk of

servicess is to consiider the taxees involved.. Finland, foor instance, suggested this t strategyy in its 2001 reeport. More specificallyy, the follow wing indicattors could be b developedd (see Tablee 6.5). Table 66.5 Tax baased indicattors for meeasuring ow wn-use prod duction work of servicces Indicattor Foregonne labour taaxes (as perccentage of total t tax basse) Foregonne profit taxxes (as percentage of tootal tax basee) VAT onn intermediaate goods used u for ownn-use produuction work of services 252. Peersons engaaging in own n-use produuction workk of servicess are not paiid. Howeverr, for

policym makers, it is valuable too get an imppression of tthe scale of the foregon ne labour taxx base. Similar reasoning can c be appliied to comp panies and their t respecttive profit taaxes to be deducted d if hired for providiing real-marrket services. 104

253. In n addition, individuals i p VAT on intermediiate goods thhat they subbsequently used pay u for

own-use production work of services s actiivities. Thesse purchases add to thee governmennt’s s the perrsons engagging in ownn-use producction work of o services are a final budget, however, since mers they doo not reimbuurse VAT, which w can leead to a high her value in n calculatingg their consum servicess.

6.11.2 Speciific indica ators 254. A As already mentioned, m in addition to t general inndicators off own-use production work w of

servicess, there is a range of indicators thaat are speciffic to the hoousehold funnction. Thiss section intends to give an overview o off these (see Table 6.6). Table 66.6 Specificc indicatorrs of own-usse productiion work of services Own-u use producction work of

In ndicator

Comm ment

servicce activiity Housing Nutritionn

Adult Caare

Tax on o property Intereest on mortgagge and amortiization Numbber of visits too the supermaarket

The number of visits to suupermarkets coonveys an o the time speent on own-usse impression on production work w of servicees.

Timee spent in/valuue of informal adult care servicce relative to formal servicees

Used to assesss governmennt policy on addult caring.

Numbber of adults who w do not livve in formaal care arrangements

These two inndicators are in ndicative for how h many elderlyy persons still live in their home h and are hence mo ore dependentt on support frrom their family. Natio onal panel survveys could prrovide this information.

Numbber of older generation g friendly apartments Tax-eefficient expennses for inform mal adult care

Childcaree

Timee spent in/valuue of informal child care servicce relative to formal servicees

Used to assesss governmennt policies on child c care, and inittiatives aimed d at increasing participation rates of mothhers

Perceentage of pareents with paren ntal leave or fleexible work arrrangements

National pannel surveys couuld provide thhis information. For examplee, the German national panel (SOEP P) asks the folllowing questioon: “Was your career innterrupted by the birth of one or more children, e.g., maternnity leave or parental p leave?”

105

Own-u use producction work of

In ndicator

Comm ment

servicce activiity

Transporrt

Totall trip miles perr year/month//week/day (per person) p exerciising own-prooduction work k of services Amouunt of money spent on insurrance/taxes forr vehicles

6.2 Periodic P city 255. There are two main factors that sho ould determiine the freq quency of prroduction off

measurees of own-uuse productiion work off services. These T are theeir usefulneess to policym makers, and the availability of dataa. Regardingg the formerr, if measurres of own-uuse producttion work off services arre deeply roooted in pollicy decisionns in a coun ntry, then it is clearly advantageoous to produuce estimatees on a regullar – annuall or bienniaal - basis. Thhis will o policy iniitiatives, and more timeely analysiss of well-beiing. enable iimproved asssessment of 256. Itt is also possible that so ome aspectss of own-usee productionn work of services are more

useful tthan others. In this casee, it might more m suitablle for countrries to prodduce differennt aspects of own-usee productionn work of seervices at diifferent freq quencies. Fo or instance, l countriees might meeasure of thhe value of informal chiildcare annuually and thhe value of laundry servicess every 5 yeears. This appproach is less l suitablee for countriies that use a single souurce, such as a TUS - it makes m moree sense to measure m all own-use o prooduction wo ork of services at me time. How wever, for those that ad dopt the outtput approacch, such as the t United the sam Kingdoom, there is more scopee to choose when w to prooduce measuures of diffeerent activitties of own-use production work of services. s 257. The availabillity of data will largely y dictate the ability to measure m ownn-use produuction

work off services. Countries C thhat adopt ann input methhodology wiill rely on tiime-use survveys that cann be expensiive to impleement. The standard appproach seem ms to be conducting a ttimeuse survvey every 5-10 years with w estimatees of the vaalue of own--use producction work of o servicess following a similar cyycle. This iss not frequeent enough to t accuratelyy reflect soccietal changess, and counttries shouldd aim to meaasure own-uuse productiion work off services evvery 2-3 years. C Countries arre encourageed to explorre options, already a outllined in thiss chapter to overcom me the consstraints impoosed by rely ying on expensive, andd infrequent full-scale tiime-use survey. An alternattive approacch, for thosee countries reliant on TUSs T every 10 years orr so, is to exploore alternatiive sources of informattion to bencchmark agaiinst. For insstance, while the United Kingdom laargely favouurs an outpuut approachh, it measurees the value of home u usingg an input approach. a H Hours spent cleaning, c foor instance, are maintennance and upkeep collecteed annually using stylissed questionns on household surveyys. These esstimates are then modelleed using infformation frrom the mosst recent TU US conducteed in 2000. 258. Fiinally, meassures of ow wn-use produuction workk of servicess are more useful u whenn they

are internationally comparablee. The recom mmendationns of this Guide G act to improve i thee o prooduction wo ork of serviices. To aid internattional consistency of esstimates of own-use 106

comparrability it is recommendded that couuntries harm monise referrence period ds. While coountries should aim a to releaase periodiccally as desccribed above, they shou uld also aim m to publish in years ennding in 5 and a 0. This enables e a much m richer degree d of annalysis of own-use o production work off services.

6.3 H How sho ould mea asures o of own‐u use production n work o of s services be brok ken dow wn? 259. H Headline measures of ow wn-use prodduction worrk of servicees, describeed in detail in i 5.3,

are impportant to aidd policy devvelopment and a assess well-being. w However, the t degree too which headline measures are disaggrregated is eqqually as im mportant. Foor instance, measures of ownuse prodduction worrk of services are closeely linked too issues relaating to gendder inequaliity, emphassising the neeed to disagggregate by gender. Furrthermore, countries c sh hould aim too present own-use prroduction work w of servvices by age, and household compo osition. Thiss should h of inpuut, or units of output, and a the valuue of producction. This task t is apply too both the hours more eaasily undertaken using the input appproach to measuring m o own-use prooduction woork of servicess. The units of input aree usually measured m viaa a survey th hat will typiically includde a wide-raange of variaables relatinng to the ind dividual andd the househhold. It is not n so straighttforward witth the outpuut approach that is usuaally measured from thee top-down. Typicallly, output based b measuures providee more inforrmation on the consum mer than thee provideer of the servvice. For innstance, in an a output approach to measuring m ow wn-use production work off childcare services s , it is relatively y straightforrward to an nalyse by thee age of thee childrenn being careed for, but leess is know wn about whho is providiing the caree. This is onne of the drawbacks of the output o approoach, descriibed in moree detail in Chapter C 3. 260. B Beyond the indicators i m mentioned abbove, counttries are enccouraged to provide furrther

breakdoowns to enaable a richerr level of annalysis. Thiss includes measuring m ow wn-use prodduction work off services byy ethnicity, income disstribution, education levvel, region, and age of childrenn.



107

Chap pter 7

Case S Studiess

261. This section provides caase studies from f Austraalia, Canadaa, Finland, Italy, I Mexicco,

Republiic of Moldoova, Switzerrland, Uniteed Kingdom m and United d States. It contains c a descripttion of the coverage, c m methods and d results. Futture internaational compparisons reqquire a common definitionn, comparabble measurement and vaaluation meethods and the t same refference year.

7.1 M Measurin ng and v valuing unpaid d househ hold serrvice wo ork – C Canada’s s experiience 7.11.1 Measuring ow wn‐use prroduction n work o of service es using a a time‐‐use surv vey 262. In nformation on o the time spent on unnpaid houseehold servicce work in Canada C com mes from

Statisticcs Canada’ss General Soocial Surveyy (GSS), ann annual houusehold survvey with a differennt theme eacch year and repeated coontent everyy fifth year. So far, fivee time-use surveys s have beeen conducted via the GSS G program m and a surrvey is curreently in the field for 20015, with ressults expectted in autum mn 2017. in 263. The GSS cov vers all perssons aged 155 years and over living g in private households h Canadaa, excluding residents of o the Yukon n and the Teerritories annd full-time residents of o institutiions. Imputaations were made to exxtend coveraage (imputeed time use data for thee Territorries). Until 1998, the sttratified sam mple size forr each Timee-Use Surveey (TUS) was w approxiimately 10,0000 responddents, one from fr each saampled household seleccted throughh a random m digit dialling techniquue. 264. Siince 1992, the t TUS has been cond ducted thouggh the entire year to caapture seasoonal

variatioon in the usee of time. Respondents’ time use iss collected by b way of a retrospectiive 24hour diaary for one pre-designaated day of the week. The T interview w takes plaace no more than 48 hours foollowing thee designatedd day and th he sample is distributedd across dayys of the weeek to ensure aan equal rep presentationn of weekdaays and weeekends. Onlyy primary activity a was taken in accouunt becausee it was uncllear how to approach secondary acctivity. Each h respondennt is requesteed to reportt each activiity as it occu urred in chrronological order, incluuding a desccription of the aactivity, wheen it startedd and ended,, where it toook place, with w whom and a in certaain instancees for whom m. Unpaid household h seervice workk includes domestic choores (includding repairs and maintennance), helpp and care of o children and a adults of o the houseehold, shoppping, househoold manageement, transpportation annd travel rellated to houusehold worrk, and other unpaid work (volunnteer work and related travel for other o househholds and no on-profit organizzations). 265. In n the 1998 edition e of thhe TUS, inteerviewers cooded activitties as they were reportted with

the helpp of computter-generateed menus sh howing the m most comm monly occurrring activities. For the 2005 TUS, a ‘w where were you’ compoonent of thee diary was added, the sample sizee was mputer assistted telephonne interview wing. increaseed to 15,3900 and it wass administerred via com 266. A An in-depth redesign r off the GSS prrogram startted in 2010 as a result of o ‘the increease in

cell-phoone-only hoouseholds, thhe resistancce to answerr an increasing numberr of surveys, and 108

rising costs for data collectionn’. Information was, forr the first tim me, collecteed on simultaneous a to incclude all actiivities, regaardless of duuration, andd to activitiees. Responddents were asked report hhow long did each activvity last. Thhe ongoing 2015 2 GSS is using a neew telephonne samplinng frame and it has fielded its firstt multi-modde (internet and a telephone) collection.16 267. Seeveral updaates and exteensions hav ve been carrried out sincce the early study in thiis area,

when TUS T data become availaable. Estimaates on unpaaid househo old service work w are made for 1981, 1986, 1992 and a 1998 with improveed source daata and refinned definitioons and metthods s carriied out on vvaluation off unpaid houusehold servvice introducced at each stage. All studies work coovered only y primary acctivity and focused f on labour l inputts. 268. In n the early nineties, n Thoen (1993) from Statistics Canadaa developedd preliminarry

estimatees for the vaalue of ownn-use producction work of services in Canada for f 1981 and 1986, using ann input apprroach. This exploratoryy study attem mpted to buuild an extennded Input Output model (Supply-Use ( e tables) whhich includees own-use production work of serrvices. In adddition to labouur inputs, thhe services oof consumerr durables inn the own-u use productiion work off servicess process, depreciation d , indirect taaxes and inteermediate consumption c n were takenn into accountt. Statistics Canada toook data on tiime-use andd national acccounts dataa as a startinng point. A About 600 commodities c s were revieewed and alllocated to activities. a Fuurthermore,, calculattions on thee services off consumer durables weere integrated in the inp put output tables. t In the aallocation prrocess, goodds like electtricity that are a used in several s ownn-use producction work off services acctivities werre allocated d mainly witth the inform mation on th he time speent for the activvities conceerned. In moost cases, tim me seems too be the besst approxim mation for thhe allocation process. General ovverhead costts of the houusehold werre identified d separatelyy, but subsequuently allocated to activvities’.17 269. In n the mid-niineties, prevvious estimaates of the value v of unp paid househhold service work

were revised and a sensitivity analysis off the estimattes to variou us assumptions was carrried out mates were put on a com mparable foo oting to anaalyse (Jacksoon and Channdler, 1995). The estim longer-tterm trends in unpaid household h service workk. Findings shed light on o the consiiderable variatioon in the estimates of unnpaid houseehold servicce work deppending of the t valuationn methodd, on differen nces in unppaid producttive tasks unndertaken by b men and women, w highlighhting the siggnificant role of women in the own-use produ uction workk of servicess and the conttinuing evolution of theese differennces over tim me. 270. Prrior to 1992 2, Statistics Canada’s estimates onn the value of o unpaid ho ousehold service

work w were compileed based onn population n counts, tim me use averaages for speecific demoggraphic groups, and imputeed hourly coost for each activity byy persons in each groupp (22 activitiies and w activitiies were 52 grouups). The avverage time spent on prrimary unpaaid householld service work broken down by grroup and acttivity. The population were subdiivided into groups g definned by mily status, labour forcce status, nu umber of chiildren and age a of provincce of residennce, sex, fam the youungest child,, if any. Thee average tim me on unpaaid household service work w was multipliied by 365 /60 / to conveert minutes per day to hours h per year. This avverage time was then muultiplied by population count (by group g and activity) a to obtain o aggreegate annual hours. The forrmula for the value of unpaid u houssehold service work invvolved estim mating a vallue of each activity for sp pecific demoographic grroups and agggregating these t valuess.

16

The fraame contains also a various administrative a sources proviided to Statisttics Canada (see online documenntation on the GSS time usee survey). 17 Internaational Conferrence on the Measurement M and a Valuationn of Unpaid Work: W Proceediings. Statisticss Canada. http://pubblications.gc.cca/collections//collection_20 016/statcan/CS S89-532-1994 4-eng.pdf.

109

271. Estimates of the value of o unpaid ho ousehold serrvice work for f 1998, allong with a

reworkiing of previiously publiished estimaates for 19992, were preepared direcctly using individuual-level infformation from fr the TU US so that thhey can be compared c annd analysedd along far morre dimension ns. The form mula used inn previous analyses a stilll applies bu ut in this caase, the summattion is acrosss all surveyy respondennts and the number n of persons p in each e populattion group iss replaced with w the weiight of each h respondent in the surv vey. The average annuaal hours spent onn each unpaaid househoold service work w activitty by person ns in each population group g is replacedd with the annualized a ttime reporteed by type of o unpaid hoousehold serrvice work by each responddent. The im mputed hourrly cost for each e activitty by populaation group is replacedd with a cost impputed to eacch respondeent.

7.11.2 Comp paring va aluationss based on the opp portunity y cost and repla acement ccosts app proach 272. Sttatistics Can nada focuseed on the meeasurementt and the valluation of laabour inputss to

own-use production work of services s usinng two variaants of bothh opportunitty cost and ment cost fo or valuing unpaid u houssehold serviice work. Depending onn the methood of replacem valuatioon of unpaidd householdd service wo ork, this resulted in widdely differin ng estimatess. The use of different d sou urces of data would havve probablyy had an add ditional imppact on results. 7.1.2.1 Methodo ology used ffor the opp portunity ccost valuattion 273. Fo or both oppportunity and replacemeent approacches, the hou urly wages used to estiimate

the valuue of unpaidd householdd service wo ork were derrived from Statistics Canada’s cennsus of populattion using annnual emplooyment earnnings, weekks worked and a weekly hours h of persons employyed in Canadda. The annnual hours of paid workk were compputed as weeeks workedd multipliied by hourrs worked thhe week beffore the censsus. 274. In n order to caalculate oppportunity coost estimatess, custom taabulations drawn d from the

census were w requirred. The reqquired tabulaations contaained data on o employm ment incomee of the populattion 15 yearrs and over, who have employmen e nt income no ot equal to zero, z numbeer of weeks worked w greaater than zerro and who were emplooyed in the reference week. w The tabulatiions showedd counts, tottal employm ment incomee and total annual a hourrs of work, by b age group aand sex, totaal annual hoours of workk and number of personns, by selectted occupattions, by sex, in C Canada andd in the provvinces and territories. t O Opportunity y costs for valuing unpaaid househoold service work were derived from m average annual a employment inccome, weekks workedd, and weeklly hours, byy province and a sex. 275. A Average hou urly earningss were baseed on the annual employyment income of persoons who

were em mployed at the t time of the Census and had woorked the prrevious yearr. This incluudes all employyees and selff-employedd in all indusstries in all occupation working fuull-and part--time and fulll- and part-y year (Jacksoon and Chan ndler, 1995)). Since the census repo orts incomee for the previouus year, hourrly earningss were indexxed for inflaation to corrrespond witth the refereence year forr the TUS. The T index used u is the fixed-weight fi ted averagee index of ho ourly earninngs by provincce and territoory calculatted from thee Survey off Employmeent, Payrollss and Hourss. Before-tax v variant of th he opportu unity cost 276. In n this varian nt of the oppportunity coost, employeer’s contribu utions for Employmen E t

Insurannce and Canada / Quebeec Pension Plan P were added a to aveerage hourlyy earnings. 110

A After-tax varriant of thee opportunity cost 277. In n Canada, th he opportunnity costs aft fter taxes aree net of the marginal in ncome tax. The T

averagee hourly earrnings are reeduced by an a amount equivalent to o the combined federal and provinccial marginaal tax appliccable at variious levels of o taxable inncome for a single taxppayer with noo dependantss obtained ffrom the Naational Finannces (Jackson and Chaandler, 19955, p.45). 7.1.2.2 Methodo ology used ffor the ma arket repla acement co ost approach 278. Fo or the purpo ose of calcuulating replaacement cosst estimates, census tab bulations weere

requiredd with data on annual employmen e nt income off populationn 15 years an nd over witth employyment incom me greater thhan 0, who are classifieed as full-yeear full-timee (40 weekss, 40 hours a week) and employed in i the refereence week, showing s tottal employm ment incomee, total h of woork and num mber of perssons, by seleected occuppations, by sex s for Canaada, annual hours provincces and terriitories. Repllacements costs c were thhen derived d from averaage annual employyment incom me, weeks worked, w and weekly houurs, by provvince and acctivity. A single replacem ment cost iss calculatedd for womenn and men. Sp pecialist vaariant of the replacem ment cost ap pproach 279. W With the specialist variaant, the replaacement costs of unpaiid household service w work

activitiees are imputted based onn hourly earrnings of peeople emplo oyed in mattched occuppations even thoough the woorking condditions and productivity p y of the repllacement worker w vary significcantly from those of thee provider of o unpaid hoousehold serrvice work. Generalist v variant of th he replacem ment cost aapproach 280. W With the repllacement coost generalisst approach, all unpaid houseworkk service woork done

in Canaada for mem mbers of the household or for otherr householdds (except ch hildcare) annd commuunity work is valued at the wage raate of personnal servicess occupationns. Childcarre is valued at a childcaree occupationns wage ratee (at the cosst of physicaal care of chhildren). Otther unpaid household service s worrk activities (volunteer work for noon-profit org ganizations) are a the wagee rate for occcupations in n welfare annd commun nity servicess. valued at 281. Fo or both variiants of the replacemen nt cost methhod (specialist and geneeralist), houurly

earninggs in personaal services and a childcarre occupatioons were addjusted upw ward by 15% % to accountt for board and a lodgingg. 282. W While Statisttics Canada compiles estimates e baased on fourr methods of valuation,, each

based oon the notionn of replaceement cost and a opportuunity cost, th he generalisst variant off replacem ment cost iss the preferrred method.. 7.1.2.3 Compariing results Table 77.1 Value of o own-use production n work of services s usiing differen nt methods Method d

Valuee (billions of o 1992 CAN N$)

Opportuunity cost before b tax

374.1

Opportuunity cost after a tax

221.1 111

Replaceement cost – specialist

296.6

Replaceement cost – generalistt

234.5

Source: Statistics Caanada, 1995 283. Table 7.1 com mpares resuults from alll four methoodologies. It I shows thaat the value of own-

use prodduction worrk of services is highesst when appplying the oppportunity cost c before tax t methoddology. How wever, once taxes are acccounted foor, the opporrtunity cost approach has h the lowest vvaluation. The T value off own-use production p w work of serv vices is low wer when vallued using thhe replacem ment cost genneralist appproach comppared with the t specialisst approach. This reflects the fact thaat wage ratees of speciallists tend to be higher than t the genneralist wagge rates.

7.2 M Measurin ng and v valuing unpaid d househ hold serrvice wo ork – A Australia a’s expe erience 284. In n May 20144, Australia prepared a paper p on Unnpaid Workk and the Au ustralian Ecconomy,

lookingg at the overrall value annd growth of o unpaid hoousehold serrvice work conducted c b by househoolds in Austtralia, incluuding compaarisons withh other coun ntries. The paper p explorres the contribuution of ind dividual actiivities to thee total valuee of unpaid household service s worrk, and the imppact the inclu usion of eacch activity into i the production bouundary wouuld have upoon GDP.

7.22.1 Measuring ow wn‐use prroduction n work o of service es using tthe repla acement h hybrid ap pproach 285. The 2006 TU US was the principal p staatistical basse for deriviing the estim mates of thee value

of unpaaid householld service work. w Thesee were comppiled using the t individuual functionn market replacem ment cost method, m usinng male andd female waage rates. A gross wagees concept was w used based oon weekly orrdinary timee earnings, which is inclusive of cash c wages and a salariess, and related income tax. It does nott include social securityy contributiions (i.e. supperannuatioon and n availablee in Australia by occuppation on a perp worker compensatiion), as suchh data are not d weeekly ordinaary-time hour peer-employeee basis. Houurly wage raates were obbtained by dividing earninggs by ordinaary-time houurs paid for.. Only TUS activities classified c as being prim mary activitiees were inclluded in thee study. 286. To estimate the t value off unpaid houusehold servvice work, Australia A prreferred a hyybrid of

the geneeralist and specialist s reeplacement cost approaach. The genneralist repllacement coost approacch values th he time spennt on own-use productioon work of services byy household memberrs accordingg to the cost of hiring a housekeepper to underrtake the tassks. The keyy assumpption underlyying this appproach is th hat househoold memberss and houseekeepers aree equally productivee in perform ming househoold work, w which may or o may not be b true. For ore productiive at clean ning than a household h m member example, a housekeeper is likeely to be mo s time. Alternative A ly, a housekkeeper who maay also be loooking afterr small childdren at the same may cleean more quuickly but leess thorough hly than thee household member. Use U of this approacch also assu umes that theere is a well-establisheed labour maarket for peersons who undertaake all houseehold tasks,, which wass not the casse in Austraalia at the tim me. 287. The replacem ment cost hyybrid metho od is an attem mpt to refin ne the approoach, wherebby

activitiees normallyy carried outt by a houseekeeper are valued usinng a housekeeeper's wagge rate, 112

and those activitiess not withinn a housekeeeper's job deescription are a valued according to the ment approacch. This is an a attempt tto better reppresent the actual a outsidde specialiist replacem employyment a household wouuld get in to complete aactivities cattegorised ass householdd work in this sstudy. It would appear to be appropriate for thhe Australiaan situation given that Australians typicallly hire houssekeepers to o clean house interiors,, manage laaundry and w they hiire specialissts to carry out o childcarre, household occasioonally prepaare meals, while maintennance, and gardening g taasks. 288. O Only a selecttion of occuupational waage rates weere used, baased on the following ruules:

 

The occuupations choosen were th hose that woould be direectly affecteed by an inccrease in demand when w a partticular type of own use production n work of seervice activity was transferreed to the maarket. Of the occcupations selected, s only those deeemed most similar to th he type ownn use productioon work of service s activvity under consideratio c on were seleected.

289. These rules were w considdered approppriate as it can c be argueed, for exam mple, that iff people

start eatting out more, demand for cooks and a kitchen hands, whoose work aree most simiilar to the ownn-use produuction work of nutrition n services, w would increaase. If the seelection proocess resultedd in a group of occupations being matched m to an unpaid work w catego ory, a weighhted averagee of the earnnings for eacch occupatiion in the grroup was takken, based on o weights derived from thhe TUS activ vity data. Thhis was posssible becauuse the two-d day diary of the currennt timed actiivity level, to which ap ppropriate occupation o c codes use survvey providees data at a detailed could be allocated..

7.22.2 Resullts 290. B Both market replacemennt cost and opportunity o y cost figurees were prep pared. The latter l

allow foor internatioonal comparrison, and too illustrate the t impact the t choice of o valuationn methodd has upon thhe results. The T results of o the opportunity costt methods were w consisteently higher tthan the estiimates prodduced using the market replacemen nt valuation n methods. 291. The paper no otes that thee value of unnpaid houseehold servicce work dep pends on thee scope

of the aactivities inccluded, and the distincttions betweeen paid worrk, unpaid household h seervice work annd leisure arre still subjeect to worlddwide debatte and refineement. Defiining certainn activitiees as producctive can bee contentiou us, especiallly when actiivities may contain elem ments of both work and leeisure. For example, a person outsside the houusehold unitt can be empployed d - which quualifies as unpaid u to perfoorm volunteeer care for a sick, frail,, disabled adult or child househoold service work underr the third party criterioon. In comparison, activvities such as a a grandpaarent spendiing time witth their granndchild, or organising and attendinng rehearsaals for a school pplay, contaiin strong leiisure compoonents. In prractice, peo ople generallly do not hiire someonne else to unndertake succh activitiess on their beehalf, thereffore failing the t third peerson criterionn. The treattment of acttivities that may borderr on leisure substantiallly impacts the t estimatees producedd. Some would argue thhat such carring activitiees should no ot be classiffied as work orr leisure butt somethingg else - they are activities that satissfy biological and cultuural codes oof behaviourr to ensure desirable d ou utcomes for the whole of o society. Despite D thesse reservattions, the paaper includeed caring inn the scope of o unpaid hoousehold seervice work. 292. D Defining paidd work had its complex xities also - for examplle, travel to and from work w

was exccluded from m unpaid houusehold serv vice work inn the Austraalian study because it was w deemedd not possible to hire soomeone to trravel to worrk on one's behalf and it is clearlyy associatted with paiid employm ment rather than t unpaid household service worrk. 113

293. The results of o the 2014 study s show that if the production p b boundary was w extendedd to

include only own-uuse production work off services, itt would havve greater im mpact upon the n if volunteeer and comm munity workk was includ ded. value off GDP than 294. D Despite foodd and drink preparation p and clean uup having one of the loowest activitty wage

rates, it was the larrgest contribbutor to the total value of own-usee productionn work of seervices a weeekly. due to tthe fact the largest porttion of time was dedicaated to this activity Commuunication asssociated wiith volunteeer and comm munity workk contributeed the least in i terms of valuee and time to t total unpaaid househoold service work w despitte having on ne of the higghest wage raates. 295. In nternationall comparisonns in the paaper show thhat the valuee of unpaid household service

work coonducted in Australia relative r to GDP G ranks second s highest overall, using eitheer of the valuatioon methods.. In 2006, thhe value of unpaid houusehold servvice work raanged from $416 billion tto $586 billlion, which represents 41.6% 4 to 588.7% of GD DP for that year. y In term ms of unpaid household service s worrk relative too GDP, thesse results pllace Australlia at the higgher end of tthe internatiional standings. 296. M More detail of o the assum mptions and d processes used u in this study is avvailable in thhe

Explanaatory Notes section of tthe publicattion “Spotliight on Natiional Accouunts” (Austrralian Bureau of Statistics, 2014).

7.3 H How doe es on‐usse produ uction w work of sservicess affect m measure ed incom me inequ uality? –– United d States 7.33.1 Introduction 297. This section provides an n example of o further annalysis exam mining the ro ole of own--use

producttion work off services on income innequality. This T is basedd on a paperr by Harley Frazis and Jayy Stewart18 of o U.S. Bureeau of Laboour Statisticcs. The standdard approaach to measuuring income inequality is to compuute an inequuality statistiic (such as the t Gini coeefficient or m of individual earnings e or household money incoome. coefficiient of variaation) for a measure Howeveer, this apprroach ignores own-use productionn work of seervices, whicch is a subsstitute for marrket produceed goods annd services. To illustrate, suppose that t individ dual A earnss $1,000 per weeek and pays $100 per week w for servvices, whilee individuall B earns $9900 per weeek and does thee same servvices him/heerself. Indivvidual A willl be higher in the incom me distributtion, even thoough the vaalue of whatt they have produced iss the same.

7.33.2 Data 298. To estimate the t effect off including own-use prroduction work of serviices on meaasured

inequality in the United U Statess, the authorrs used timee-diary dataa from the 2003 Americcan Use Survey (ATUS). ( Thhe ATUS innterviews onne person peer household about the day Time U before tthe interview w and collects informaation on the amount of time t spent in i over 400 detailedd activities. It also colleects informaation about time spent looking afteer children under u 18

The vieews expressedd here are thosse of the authoors and do nott necessarily reflect r the view ws of the U.S. Departmeent of Labor or o the Bureau of Labor Statistics.

114

13 whille doing othher activitiess (secondaryy childcare)). Detailed information i n on earned and unearneed income iss available ffor about on ne-third of ATUS A respo ondents.19 299. The sample consists c of single-adult s t householdss where the respondentt is age 25-664 (no

spouse or unmarrieed partner present), p andd married coouples wherre both spouuses are bettween w excludded, and chiildren’s 25 and 64. Househholds with other adult (18+) familyy members were contribuutions to inccome and own-use production work of servicces were ignnored.

7.33.3 Valuiing own‐u use prod duction w work of se ervices using the repla acement g generalisst and sp pecialist a approach h 300. Two alternattive definitio ons of own--use producction work of o services were w used. The T first

definitioon includes houseworkk (includingg shopping) and care off household members done d as 2 20 a primaary activity. The secondd definition adds childccare done ass a secondarry activity. The replacem ment-cost approach a to value own--use producttion work of o services was w used, byy means of the m market wagee for the acttivity. Eitheer a generaliist wage, specifically thhe average wage w for housekeepers, or o specialistt wages thatt correspondd to the diffferent houseehold activities m wage dataa from the Current C Population were ussed. The speecialist wagges were estiimated from Survey (CPS) by using u the meean wage fo or the detaileed occupation that mosst closely vity. Both money m incom me and the value v of ow wn-use produ uction workk of resemblles the activ servicess using an equivalence e scale to acccount for vaariation in household h siize were adjjusted. 301. Empirically, the choice of wage maade little diffference, because most own-use

producttion work off services tiime was relaatively low--value. The value of ow wn-use prodduction work off services was w only aboout 10 perceent greater when w using the specialiist wage verrsus using thhe generalisst wage. How wever, it did matter whhether seconndary childccare was inccluded or excluuded—incluuding seconndary childccare increaseed the valuee of own-use productioon work of serviices by abou ut one-thirdd.

7.33.4 Estim mating tim me spentt in own‐u use prod duction w work of services using g a regression mo odel 302. B Because the ATUS A interrviews onlyy one personn per househhold and collects only one o

diary peer person, thhe collectedd informatioon of own-uuse production work off services waas incomplete. Thereffore, the autthors estimaated the aveerage time spent in ownn-use produuction o observabble characterristics. Theyy used a varriation of thhe work off services coonditional on regressiion methodss used in stuudies by Boonke (1992), and Jenkin ns and O’Leeary (1996) to predict own-use prroduction work w of serviices. They regressed r th he equivalennce-scale o own-use production p work of serrvices on a set s of demoographic andd normaliized value of income variables. For F marriedd respondennts, they alsoo included demographi d ic and incom me i too measure accurately th he relationshhip variablees for the sppouse. Becaause it was important

19

The AT TUS has data on usual weekkly earnings. However, thee data are availlable only for the respondennt, and there are no data on unnearned incom me. Therefore, it is necessaryy to match AT TUS respondeents to Currennt Populatioon Survey data, which has more m extensivve income dataa for all houseehold memberrs. In practice,, however,, only about one-third of AT TUS respondeents can be maatched (Fraziss and Stewart, 2004). 20 This iss not an activitty per se. Resppondents are asked a to reporrt times or activities during which a childd under 13 was “iin your care.””

115

betweenn own-use production p w work of serv vices and inncome, a fleexible specification for the log of familly income was w used.21 303. Seeparate regrressions by marital stattus, sex, and d day of weeek (weeken nds and weeekdays)

were raan. For each marital-staatus-by-sex cell, the preedicted valuues from thee weekday (×5) ( and weekennd (×2) equaations to gennerate the im mputed weeekly value of o own-use production p work of servicess were summ med. For married m housseholds, totaal own-use production p work w of serrvices was sim mply the sum m of the hussband’s andd wife’s preddicted valuees. 304. N Note that usiing only preedicted valu ues of own-uuse productiion work off services iggnores

the variiation that iss not relatedd to demogrraphic charaacteristics. The T error teerm in the regressiions is equaal to the sum m of a long-rrun person--specific varriation (whiich is real variation in long--run own-usse productioon work of services) s annd day-to-daay variation n (which is noise). n It is posssible to plaace an upperr bound on the long-runn person-sp pecific variaation by assuuming that there is no dayy-to-day varriation. Thuus, the regresssion residuual to the prredicted valuue of s wass added.22 own-use production work of services

7.33.5 Resullts 305. The computeed inequality y measures (Gini coeffficient, coeffficient of variation, 900-50

ratio, 500-10 ratio, and a 90-10 raatio) were under u a wide range of assumptions a s about the wage w (generaalist and speecialist), seccondary chilldcare (incluuded and exxcluded), eq quivalence sscale (OECD D and squaree root), and the imputattion proceduure. It was found f that:   

All of thee inequality measures provided p sim milar resultss — extendeed income was w more equually distribuuted than money m incom me. Adding thhe regressioon residual to t the predicted value of o own-use production work of servicees had only a small effe fect on the innequality measures. m There waas very littlee variation in own-use production p work of serrvices by inccome. Adding thhe mean vaalue of own--use production work of o services for f each of the t cells defined above a yieldeed about thee same decliine in inequ uality measu ures as doess using the prediccted values.. Using the coefficient of variationn as the ineq quality meaasure, it was foun nd that the main m result— —that extendded incomee is more eq qually distribbuted than monney income— —holds eveen if money income andd the value of own-usee productioon work of services s weere perfectlyy positively correlated.

7.33.6 Concllusion 306. Prrevious stud dies have allso found thhat extendedd income is more equallly distributeed than

money income andd speculatedd that the ressult is due to t a negativee correlationn between money m O would ex xpect this reesult from income and own-uuse productioon work of services. One mic theory, as a householdds (or indivviduals withhin househollds) with low w market wages w econom would be b expected d to devote more m time too own-use production p w work of servvices relativve to the laboour market. The authors confirm thhe greater equality of extended e inccome but iddentify a differennt reason. Th hey show thhat the weakk correlation cannot bee the explan nation and thhat 21

Gallannt's (1981) Fouurier series exppansion were specifically used. u The auuthors also exp perimented wiith alternative assumptions about the fracction of the residual that is day-tod day variaation, and the results r were thhe same. 22

116

virtuallyy all of the difference in i measured d inequality between th he two meassures is due to the additionn of a large constant—tthe averagee value of ow wn-use prodduction worrk of servicees—to money income.

7.4 Im mpleme entation n of the household sate ellite acccount off M Mexico 307. Siince 2011, the t Nationaal Institute of o Statistics and Geograaphy (INEG GI) developss the

Househhold Satellite Account of o Mexico. The objectiive is to provide inform mation on thhe econom mic value an nd importancce of own-uuse productiion work off services off women annd men. 308. The valuation n of unpaidd household service worrk is conduccted periodiically and inn timely

mannerr, based on the t 2008 SN NA and the Eurostat’s "Proposal " foor a Methoddology of 23 Househhold Satellite Accounts”. 309. The househo old satellite account proovides addittional inform mation for public p policy and

decisionn-making, in particularr on issues related r to geender equaliity, consum mption and househoold expendiiture, total workload, w caare of children and the elderly, carre of chroniic and temporaary sick, and home schhooling. 310. Fu urthermore,, the results have been used for shaping key in ndicators fo or the develoopment

of the ccountry, such as "estimaate of womeen's contribbution to GD DP by the ecconomic vaalue of unpaid household work" w inscrribed in the National Prrogram for Equal E Oppoortunity andd Nonmination agaainst Womeen 2013-20118. Discrim 311. In n valuing thhe unpaid hoousehold serrvice work, the total workload in the t econom my is

disaggregated by th he time spennt to paid, own-use o prooduction woork and voluunteer workk of w hadd the highestt workload, with 2.9 million m of houurs per weeek servicess. In 2014, women versus 22.4 million hours done by men; that is, for eacch 10 hourss done by women, w menn completted only 8.33 hours (seee Figure 7.1).

7.44.1 Distribution o of time sp pent on o own‐use p productiion work k of services by in ndividuall characte eristics, a and by ea ach activ vity 312. The responsiibility of ow wn-use prodduction workk of care annd domestic services liees

mainly on women, whose conntribution to o these activvities is 65% % of their tottal workingg time, s on maarket work. In contrast,, men's activ vities includ de mainly market m comparred to 32% spent work (773% of theirr total workk hours), whhereas only aabout 23% of their totaal working time t is spent onn own-use production p w work of carre and domeestic servicees.

23

Eurostaat, “Householld Production and Consump ption: Proposaal for a Metho odology of Household Satellite Accountss”, Eurostat, 2003. 2

117

Figure 77.1 Compoosition of th he total worrkload of th he economyy in hours by b sex, 201 14* (Millionss of hours) Unpaid work w in own‐ consumption goods

Marrket work

  3 500   3 000

5,358 2,946 6 2,442 2

  2 500   2 000

Activities of unpaid care e and  domestic work

568

2 1 922

80

  1 500   1 000

77

   500

947 7

1 794 1

   0 Wome en

M Men

*

Preliminnary results. Source: IINEGI.

313. B Breaking dow wn the inforrmation relaated to unpaaid househoold service work w by typpe of

activityy showed thaat "care andd support" for fo householld memberss amounts too 8.3% of naational GDP, foollowed by "feeding" (4.6%), ( "cleeaning and housing h maiintenance" (3.9%), ( "shoopping and houusehold mannagement" (3.2%), ( "prooviding helpp to other households h a volunteeer and work" ((2.5%) and "laundry annd footwear care" (1.7% %) (see Figu ure 7.2).

118

Figure 77.2 Care an nd domestiic work of households h s by type off services in n terms of GDP, G 2014 (Percentaage) 30% 25%

24.2%

20% 15% 8.3%

10%

4.6%

5%

3.9% %

3.2%

2.5% 1 1.7%

0% Total

Care & Suppo ort

Feedingg

Cleaningg &  housin ng  maintenaance

ping & Shopp house ehold  managgement

Pro ovinding Lau undry  & help to  other  foo otwear  house eholds  &  care vollunteer   w work

*

Preliminnary results. Source: IINEGI.

314. The statisticss provided above a wouldd allow the decision makers m to ideentify activities

where pparticipation n of womenn is substanttial, while thheir associaated wages are a lower coompared to men’’s wages. An example of o public poolicies relateed to gendeer equality innvolve carinng for childrenn (e.g., throu ugh the estaablishment of parental care for botth parents), which wouuld allow too reduce thee inequality gap betweeen men and women24.

7.44.2 Comp paring va aluationss of own‐u use prod duction w work of services using g the replacemen nt generalist and h hybrid appro oaches. 315. The economiic valuation n of unpaid household h s service workk in Mexicoo follows thhe

replacem ment cost, which w is gennerally acceepted in manny studies. It defines th he amount to t be paid to a person wh ho performss a productiive activity required to satisfy the household needs. n 316. Fo or the purpo oses of this case study,, the mechannism of an economic e valuation v of unpaid

househoold service work has beeen illustratted briefly, leaving out some techn nical detailss (see Table 77.2). For exaample, averaage wages are a used forr the econom mic valuatio on of unpaidd househoold service work hourss, whereas in n practice equivalent wages w are ussed in the market m for diffe ferent tasks (see ( Table 7.2, 7 A, B, C, C D, E, F, G, G H, I and J). J

24

See artticle 92 of Adm ministrative Code C of the State of Chihuahua, Mexico.

119

Table 77.2 Main results of un npaid household serviice work frrom Househ hold Satelliite Accountt of Mexicoo, 2003-2014 2003

2004

2005

A

National Women Men B

Total Women Men

28.2 42.6 10.4

27.9 41.9 10.6

277.4 411.1 100.9

  = D x E Total Women Men

F

H   = D x G

Total Women Men

  = D x I Total Women Men

J

27.0 38.7 13.2

Millions of hours per week of unpaid househoold services 1929 1998 20100 2021 2110 2228 1570 1614 16111 1605 1666 1751 384 3999 416 359 443 477

2284 1787 497

22358 1 1837 521

2460 1906 554

100594 84056 16538

101684 84244 17439

102960 84487 18472

Millionss of hours per year oof unpaid householld services 100326 103904 1045388 105084 109698 115833 81638 83944 837766 83458 86645 91041 18687 19959 207633 21626 23052 24791

118783 92947 25836

1222616 955546 277070

127907 99104 28803

0.6

0.6

0 0.7

1.0

1.0

1.1

Wages per hour by generalist approach (euros) 1, 4 0.8 0.8 0.99 0.9

0.9

0.9

Moneetary value of unpaaid household servicces by generalist appproach (Millions off euros)     57,162        62,943     69,7667     77,041       84,082     89,2733     91,091       97,769   107,492   116,536     126,363   135,292     47,525        51,932     57,0223     62,452       67,702     71,3177     72,095       76,891     84,109     90,693        97,965   104,188        9,638        11,011     12,7443     14,589       16,380     17,9566     18,995       20,879     23,384     25,842        28,398     31,105 1.1

1.2

Wagess per hour by equivvalent individual funnction approach (euuros) 2, 4 1 1.2 1.4 1.6 1.5 1.66 1.7

1.8

1.8

1.9

2.0

Monetary valuee of unpaid househhold services by equuivalent individual ffunction approach (Millions of euros) 1   163,7488   171,320     189,187   210,051   208,919     228,999   252,878   110,539      121,072   125,4116   138,479      152,497 1   128,0555   133,080     146,303   161,771   159,941     175,0096   190,853     89,986        97,645   100,4009   109,942      120,200     20,552        23,427     25,0007     28,536       32,297     35,6933     38,240       42,884     48,280     48,978        53,903     62,025

I

Average

26.5 38.3 12.7

1980 1625 355

G

Average

26.3 38.3 12.4

2014

1955 1620 335

E

Average

2013

1934 1616 318

D   = Cx52 We eeks

Total Women Men

2012

Population tthat realizes unpaidd household servicees (thousands)     68,499        70,176     72,1445     73,774       75,690     77,5677     79,960       81,950     84,198     86,765        88,984     91,129     37,978        38,656     39,4995     40,148       40,958     41,7477     42,813       43,961     45,248     46,707        47,979     49,211     30,520        31,520     32,6550     33,626       34,731     35,8200     37,148       37,989     38,950     40,058        41,0005     41,918

C    =  A x B

Total Women Men

2006 2 2007 2008 2009 20010 2011 Weekly hoours per person of uunpaid household seervices (UHS) 26.2 25.3 26.4 25.99 25.7 26.5 39.1 39.4 38.66 37.5 37.9 38.7 10.7 11.1 11.11 11.2 11.7 12.2

0.8

0.9

0 0.9

Wages per hoour by hybrid approoach (euros) 3, 4 1.1 1.22 1.1 1.2

1.3

1.3

1.4

1.5

1.6

Monetary value of unppaid household servvices by hybrid approach  (Millions of eeuros) 1   124,6144   128,080     138,703   154,666   169,729     184,129   206,896     79,026        86,608     93,2552   105,872      116,556     63,114        68,697     73,5999     83,228       90,990     96,5133     98,418     105,878   117,646   128,280     138,910   154,015     15,912        17,912     19,6554     22,644       25,566     28,1011     29,662       32,825     37,020     41,449        45,220     52,881

1

 For purposees of the exercise, an aaverage between the ssalary of domestic workers and the salary off specialists to calculatte the value of volunteeer work was used.

2

 For purposees of the exercise, an aaverage salary of occuppations of specialists tto evaluate each of thee activities of unpaid ddomestic and care work was used.  For purposees of the exercise, an aaverage between the ssalary of domestic workers for activities thaat household memberss usually do and the saalaries of the specialissts occupations for  other activiti es was used. 3

4

 For compari son purposes, we useed April 11th, 2016 exchange rate of Mexicann peso against euro (1 peso = 20.0996 euros).

Source: IINEGI. Availaable from httpp://www.inegi.org.mx/est/coontenidos/proyyectos/cn/tnrh h/default.aspx.

317. Paarameters "Weekly hou urs per persson" (A) andd “Populatioon that realiizes unpaid

househoold servicess” (B) are obbtained from m the National Employ yment Surveey (ENOE by b Spanishh acronym). The mass oof “hours peer week of unpaid u houssehold serviices” (C) is the result of multiplyin ng A by B, and a that, exxpanded by 52 weeks, sums s up to “hours “ per year y of s (D D). unpaid household services” 318. The variable (E) “Wages per hour by b generalisst approach”” is estimateed by usingg the

hourly m market valuue of a speciific activity y that can coover most off the daily work w of the househoold, allowinng calculatinng an averag ge wage of domestic workers. w Aveerage hourly wages are considered for all activities in the unppaid household service work for which w equivaalence market is avaailable. Thee variable (G G), “Wages per hour by y equivalen nt individuall in the m 120

functionn approach”” is derived using the hourly h wagee of an activvity in the market m that is similar to the one performed p inn the houseehold withouut payment.. The variab ble (I), “Waages per d by using u (E) to value the prroductive household h acctivities hour byy hybrid appproach” is derived that are usually perrformed by domestic em mployees inn combinatiion with varriable (G). 319. A As shown in the table, obtaining o thee economicc value of unnpaid houseehold servicce work

is a resuult from muultiplying thhe mass of “Hours “ per year y of unpaaid househoold services”” (D) by the pricce determineed for each kind of valu uation: (E), (G) or (I). 320. The technicaal treatment of the serviices generatted by the household h foor its own fiinal

consum mption and whose w beneffit can be transferred too a third parrty, allows to t show how w personaal choices, which w transfform in econnomic decissions could change thee productionn boundarry and the household h c consumption n levels. Thhe individuaal who receivves the bennefit of an unpaaid househo old service work w activitty as feedingg or laundryy, can replacce these serrvices for a sim milar servicce in the maarket as a ressult of a chaange in his/h her family situation s annd this is an impoortant inform mation for policy p makeers.

7.5 R Republicc of Moldova’s e experien nce in e estimatin ng the v value d house o of unpai ehold se ervice w work 7.55.1 Measuring ow wn‐use prroduction n work o of service es using a a time use survey. 321. U Unpaid household servicces were vaalued using TUS, Earniings Surveyy (ES) and LFS L

data. Hoours spent in i unpaid hoousehold service work were estimaated based on o the TUS S data, collecteed in 2011-22012, duringg twelve consecutive months. m Activities weree coded usinng the HETUS S coding listt: O OWN-USE PR RODUCTION N WORK OF F SERVICES S 331 FOO OD MANAGE EMENT 311 Food preparattion, baking and a preservingg 312 Dish washingg 332 HOU USEHOLD UPKEEP U 321 Cleaning dweelling 322 Cleaning gard den w 323 Heating and water 324 A Arranging hou usehold goods and materialls 329 Other or unsppecified houseehold upkeep 333 MAK KING AND CARE C FOR TEXTILES T 331 Laundry 332 Ironing t 333 Handicraft annd producing textiles 339 Other or unsppecified makinng of and care for textiles 334 GAR RDENING AN ND PET CAR RE 343 Caring for petts d 344 Walking the dog c 349 Other or unsppecified gardenning and pet care

121

335 CON NSTRUCTIO ON AND REP PAIRS 351 House constru uction and rennovation 352 Repairs to dw welling 353 Making, repaiiring and mainntaining equippment 354 V Vehicle mainttenance 359 Other or unsppecified constrruction and reppairs 336 SHO OPPING AND D SERVICES S 361 Shopping 362 Commercial and a administraative services 363 Personal services 369 Other or unsppecified shoppping and servicces 337 HOU USEHOLD MANAGEME M ENT 371 Household management 338 CHIILDCARE 381 Physical care and supervisiion 382 Teaching the child 383 Reading, play ying and talkinng with child Accompanyinng child 384 A 389 Other or unsppecified childccare 339 HEL LP TO AN AD DULT FAMIILY MEMBE ER 391 Physical care of a dependennt adult houseehold memberr a household member 392 Other care of a dependent adult 399 Help to a nonn-dependent addult householdd member SERVICES FOR F OTHER R HOUSEHO OLDS (VOLU UNTEER WO ORK OF SER RVICES25) 442 INFO ORMAL HELP TO OTH HER HOUSEH HOLDS 421 Construction and repairs ass help 423 Care of own children c livingg in another ho ousehold 424 Other childcaare as help to another a househhold 425 Help to an adu ult of another household 429 Other or unsppecified inform mal help to anoother househoold

7.55.2 Valuiing own‐u use prod duction w work of se ervices using a repla acement sspecialisst and gen neralist a approach h 322. Two valuatio on approachhes were connsidered:

a)) Using gro oss salary estimates byy economic activities a frrom the ES; bb) Using thhe gross houurly wages of o domesticc workers esstimated froom the LFS for most acttivities and salary estim mates from the t ES only y for some activities, a reequiring higher qualification q n.

25

Not neecessarily voluunteer work, according a to th he 19th ICLS resolution. r

122

323. A Additionally, a possible measuremeent of unpaiid householld service work w offeredd for

other faamilies (voluunteer workk, accordingg to 19th ICL LS) using data from a specially s deesigned survey is i presented d. 7.5.2.1 First app proach: Rep placementt specialistt approach h 324. In n the ES, ecconomic actiivities are coded c using classification of econoomic activitties in

the Euroopean Com mmunity, NA ACE rev.2 at a four digitss. Estimatess are reliablle at two diggits only. Consequentlyy, even if foor each activvity from TU US a corressponding four-digit NA ACE rev.2 coode was identified, the salary usedd to value hoours was thee one calcullated at the level of two diggits. or activitiess included inn the “Shop 325. Fo pping and services” s grroup, the ho ourly wagess estimateed for domeestic workerrs (from thee LFS) was used. As LF FS collects data on net wages, a coeffiicient was used u to estim mate the gro oss wage forr domestic workers. w Giiven the valuue of the estim mated net wage, w the inccome taxes, social andd health insuurance contrributions should make abbout 17.5% of the grosss wage. Theerefore, in order o to obttain an estim mation of the gross wage, thhe net wagee was divideed by 0.8255. 326. In n order to usse salary esttimates from m the ES, TUS T hours had h to be traansformed innto full-

time woorking programs. To doo this, the estimated voolume of hou urs spent monthly m in unnpaid househoold service work, by peersons aged d 15 years annd over, waas divided by y 169 hourss/month (obtaineed by multipplying 8 hours/day by 21.125, the average nu umber of woorking days in a month).. 327. H Hours for acttivities incluuded in the “Shoppingg and servicces” group, for which LFS L

gross hoourly wage was appliedd were not transformed t d into full-tiime workingg programs. 328. Table 7.3 sho ows the TU US and NAC CE activity aand correspo onding salaary, and the

estimateed monthly volumes off hours and their value by type of unpaid u household servvice work. Table 77.3 Estimaated monthlly value of unpaid hou usehold serrvice work TUS activities

NACE rev.2 twodigits code

Hours per month

Monthlyy full-time proggrams

Average month A hly g gross salary forr a fu ull-time employyee, MDL (2014)

Monthly M value MDL M

A

B

C

D

E

F=D*E

3111

56

68,0622,170

402,735

2,598

1,0046,103,471

3122

56

29,0266,485

171,754

2,598

4 446,131,922

3211

81

26,6877,325

157,913

2,6652

4 418,848,881

3222

81

8,3555,655

49,442

2,6652

1 131,139.286

3233

43

19,0511,645

112,732

3,852

4 434,253,501

3244

96

6,1366,470

36,310

2,6619

95,093,499

3311

96

14,9011,160

88,173

2,6619

2 230,915,076

3322

96

1,9433,230

11,498

2,6619

30,113,166

3399

96

4799,135

2,835

2,6619

7,424,891

3433

96

1,3399,705

7,927

2,6619

20,760,671

3444

96

1,0177,725

6,022

2,6619

15,771,124

3499

96

6,0111,475

35,571

2,6619

93,156,520

3511

41

6166,360

3,647

3,865

14,097,503

123

TUS activities

NACE rev.2 twodigits code

Hours per month

Monthlyy full-time proggrams

Average month A hly g gross salary forr a fu ull-time employyee, MDL (2014)

Monthly M value MDL M

A

B

C

D

E

F=D*E

3522

43

4,0233,765

23,809

3,852

91,715,652

3533

95

3544

45

1,0611,890

6,283

2,7779

17,463,378

2,9666,525

17,553

3,3317

58,231,657

3599

95

9777,580

5,784

2,7779

16,076,853

3611

97

19,2622,650

19,262,65026

12.527

2 240,595,652

3622

97

1,5355,765

1,535,76514

12 2.515

19,182,116

14

15

57,518

989

6,0014

5,949,194

3699

97

4 4,605

3711

82

1677,190

4,605

12 2.5

3811

88

165441685

97880

2,4437

2 238,552,631

3822

88

2,7866,245

16,487

2,4437

40,181,280

3833

88

7,8599,150

46,504

2,4437

1 113,339,174

3844

88

1,0122,570

5,992

2,4437

14,602,578

3899

88

2544,135

1,504

2,4437

3,664,958

3911

88

10744,750

6359

2,4437

15,499,294

3922

88

899,325

529

2,4437

1,288,183

4211

41&43

1,5622,130

9,243

3,858

35,660,008

4233

88

577,475

340

2,4437

828,864

4244

88

44300,100

26,214

2,4437

63,887,809

4255

88

6455,615

3,820

2,4437

9,310,609

4299

88

7,3299,540

43,370

2,4437

1 105,701,508

Totall

-

257,2711,230

-

4,0075,598,425

329. O On average, the monthlyy value of unpaid u household servicce work in 2014 2 was 4.1

billion M MDL.28 Forr the whole year the esttimated valuue of unpaid d householdd service woork was 48.9 billlion MDL or o about 3.55 billion US SD, which reepresented 43.6% 4 of thhe GDP in 2014. 2 7.5.2.2 Second a approach: Replacement genera alist appro oach 330. In n the secondd approach (with ( few exceptions), the gross hourly h wagee of domestiic

workerss was used to t value directly hours obtained frrom the TUS S. 331. H Hours spent in two activvities, 35 Co onstruction n and repaiirs and 4211 Constructtion

and rep pairs as hellp were valuued using saalaries estim mated from the ES as thhese activitiies require higher quallification annd most probably cannoot be underttaken by doomestic worrkers. t activitties were traansformed into i full-tim me programss. Conseqquently, houurs spent in these 332. Table 7.4 sho ows the estiimated monnthly volumees of hours and their vaalue by typee of

servicess.

26

For TU US activities 361, 3 362, 369 actual hours are a given For TU US activities 361, 3 362, 369 hourly gross wage of a dom mestic workerr is estimated from LFS 28 US$ = 14.039 MDL L 27

124

Table 77.4 Estimaated monthlly value of unpaid hou usehold serrvice work using LFS wage estim mate TUS activiities

Mon nthly hours

A

Gro oss hourly wage of o domestic work kers

B

Month hly value MDL

C

D=B*C

311

6 68,062,170

12.5

8 850,114,714

312

2 29,026,485

12.5

3 362,548,564

321

2 26,687,325

12.5

3 333,331,830

322

8,355,655

12.5

104,364,367

323

1 19,051,645

12.5

2 237,960,143

324

6,136,470

12.5

76,646,152

331

1 149,01,160

12.5

186,119,475

332

1,943,230

12.5

24,271,463

339

479,135

12.5

5,984,524

343

1,339,705

12.5

16,733,274

344

1017,725

12.5

12,711,658

349

6,011,475

12.5

75,084,931

351

3,64729

3,86530

14,097,503

352

23,80923

3,852

91,715,652

353

6,28323

2,779

17,463,378

354

23

3,317

58,231,657

359

5,78423

2,779

16,076,853

361

1 19,262,650

12.5

2 240,595,652

362

1,535,765

12.5

19,182,116

369

4,605

12.5

57,518

371

167,190

12.5

2,088,248

381

1 16,541,685

12.5

2 206,610,071

382

2,786,245

12.5

34,800,946

383

7,859,150

12.5

98,162,886

384

1,012,570

12.5

12,647,270

389

254,135

12.5

3,174,214

391

1,074,750

12.5

13,423,915

17,553

392

89,325

12.5

1,115,693

421

9,24323

3,86524

35,729,333

423

57,475

12.5

717,878

424

4,430,100

12.5

55,333,134

425

645615

12.5

8,063,904

429

7,329,540

12.5

91,547,916

Total

2557,272,230

-

3,3306,706,831

On average, under the seecond approoach, the monthly m valuue of unpaidd household service 333. O work w was 3.3 billioon MDL in 2014. For thhe whole yeear, the estimated valuee of unpaid househoold service work was 39.7 3 billion MDL or about 2.8 billiion USD, which w repressented 35.4% of o the GDP in 2014. 29

For TU US activities 35 3 Constructiion and repaiirs and 421 Coonstruction and a repairs as help full-tim me programss are given.

125

7.55.3 Concllusions     

Both app proaches givve very big values v (at leeast one thirrd of GDP) which indiccate a strong neeed to applyy (one of theese two or another a one)) methods of o estimatingg the value of unpaid u houssehold serviice work annd publish estimates. e Althoughh technicallyy, both apprroaches are easy to impplement, usiing salary estimatess from the ES E probablyy induces a bias b by usin ng salaries estimated e at twodigit leveel of the NA ACE. The valuee of unpaid household service worrk under thee second appproach is prrobably a better estimate e as it i is calculatted using a wage w actually paid by householdss for household services. o sourcees than TUS S for estimaating the num mber of houurs It is possiible to use other spent in unpaid u houssehold serviice work, att essentially y lower costss. When esttimating houurs of unpaaid householld service work w and valuing them, great attention should be paid p to seasonality.

7.6 T The rela ationship p betwe een houssehold d disposa able inco ome a and unp aid hou usehold service work‐ F Finland 334. Economic theory suggessts that poorrer people should s consume more own-use o

producttion work off services, due d to their reduced abiility to conttract these services s in thhe market. However, empirical evvidence in this t area is fragmented f d and scarce. In terms oof mic resources, householld disposablle income per head is widely w used as a measuriing econom measuree of econom mic resourcees. Alternatiively, econoomic resourrces and weellbeing can also be reflecteed by consum mption, meaasured as th he level of consumption c n and availaability of gooods and servicess. However, both of theese measurees exclude goods g and services thatt households producee for their own consum mption, such h as meals, childcare c etcc. It is well recognised that the consum mption of theese servicess has a signiificant impaact on indiviidual well-bbeing; howeever, they aree still largelly excluded from officiial figures. 335. U Unpaid household servicce work andd, especiallyy, own-use production work of doomestic

servicess is strongly y related to gender. In many m developing counttries, womeen and girls bear the respponsibility for f housewoork and childcare in a family. f Dom mestic work is seen to im mpede women’s’ efforts too obtain eduucation andd participatee in paid woork. Combin ning paid annd d because of unddeveloped innfrastructures. In this way, w own-usse domestiic work is difficult producttion work off services caan be seen to t keep people in poverrty and not the other way w round. But B what would be the alternative? If meals and a accomm modation mu ust be purchhased instead of providinng them oneeself, moneyy is needed. Therefore, it is a vicioous circle. 336. The economiic approach h to own-usee productionn work of seervices focuuses on indiividuals’

rationall choices beetween paid and unpaid d work in tim me allocatio on. The stud dies have veery much appplied Beckker’s theoryy on the alloocation of tim me. People specialize in i work in which w they aree most prod ductive. Thiss is based onn the hypotthesis of ratiional behavviour and utiility maximiization in thhe allocationn of time. The availabillity of appro opriate dataa may have restricteed the numbber of studiees in this fieeld. There iss a need forr a combinattion of dataa on time annd expenditu ure and dataa on household income.

126

337. This Finnish case study

3 31

uses data drawn from m the calcullations madee for the household satellitee account, using u time-uuse data. Inpputs into unppaid househhold servicee work weree then calculatted by incom me quintile.. Domestic work w time was w valued by the replaacement cosst of the generalist housekeeper. The gross wage was w EUR 100/hour. Incoome quintilees were calcculated ways. Households weree ranked acccording to gross g incom me of the tottal householld (QA) in two w and grooss income per p househoold memberr (QB). Thesse two types of quintilees were estimated becausee the time-u use data set did d not include informaation on hou usehold inccome by connsumer unit. Att the same tiime, we havve no knowledge of thee effect of economies e o scale on of housew work time in larger famiilies. Thereffore, it is m more explicitt to use “reaal” incomes and incomes divided by y the numbeer of househ hold membeers as a basiis for rankin ng households by gross inncome. 338. C Consumptionn expendituure by incom me quintile was w dividedd into three groups: raw w

materiaals (intermeddiate consum mption), puurchases of durables d needed for hoome producttion, and purrchases of fiinal consum mption produucts and serrvices (read dy–to–use prroducts). Fiinal consum mption produ ucts do not belong b to ow wn-use production worrk of servicces – they arre a means oof outsourciing it. 339. In n the Finnishh case, it is concluded that incomee does not explain e the amount a of oown-use

producttion work off services inn a family, in i general. All A in all, it shows thatt there need to be good alternatives available a forr outsourcin ng own-use production work of serrvices. If thhey are o services does d not chaange much according to t not avaiilable, own--use producction work of househoold income.. In order too analyse dissposable inccome of ow wn-use produuction workk of servicess in relationn to poverty it is necesssary that thee sources off data (time--use and houusehold budget survey) included inform mation abouut the grosss income of householdss. The data sets s q thaat belonged d to househoolds. were coombined acccording to thhe income quintiles

7.7 T The valu uing me ethod off Switzerrland: E Empirica al examp ple w with diff ferent assumptions on wages 340. This paragrap ph providess a summaryy of the valuuing method d used in Sw witzerland aand will

present some exam mples with different d waages. The aim m is to show w the effectts on the totaal o the diffeerent activitiies. amountt as well as on 341. The starting point p for the householdd satellite acccount is foormed by private houseeholds'

producttion activitiees that are not n carried out o on a com mmercial baasis, i.e. the time spent by private individuals on unpaid household service s worrk (input valluation).32 A monetary valuatioon, which appplies markket costs by means of avverage laboour costs, alllows the comparrison of unp paid househoold service work as “fictitious” moonetary flow ws with agggregates of Natioonal Accounnts.33

31

Househhold productioon as an econoomic resourcee for low–incoome families, Johanna Varjoonen, Nationaal Consumeer Research Centre Kaikukaatu 3, FI–005330 Helsinki Fiinland. 32 Unpaidd household service work iss valued usingg the Swiss Laabour Force Suurvey. The unnpaid work moodule provides data on domeestic, childcaree and voluntarry work in Sw witzerland. Seee also chapter 5.a.iv LFS Module M – Case Study Switzerlannd 33 See: htttps://www.bffs.admin.ch/bffs/en/home/staatistics/work-iincome/unpaid d-work/househ hold-productiionsatellite-aaccount.html and a https://ww ww.bfs.adminn.ch/bfs/en/hom me/statistics/w work-income/surveys/shhp.html

127

342. The labour cost approacch correspon nds to the market m costs method utiilised for thee

unpaid household service s worrk satellite account, a beccause for thee valuation of unpaid work w it med, that thee private hoousehold or private indiividual has the unpaid household service s is assum work doone by a wo orker obtainned through the market and is thereefore theoreetically put in the positionn of an employer. 343. Labour costss are all expenditures bo orne by empployers in connection c w the with

employyment of perrsonnel. Labbour costs are a composeed of wagess and salariees (dependinng on the econnomic secto or, between 78% and 81% of the aamount), em mployers' social insurannce contribuutions (betw ween 16% and a 18%) annd other exppenditures (vvocational training, t perrsonnel recruitm ment, etc.: between b 2% % and 4%). Principal P souurce is the Swiss S Earniings Structuure 3 Survey (SESS). Coomparabilityy exists at European E levvel for these statistics.34 344. The benchmaark year is SESS S 2006.. The corressponding vaalue for each h year of the

unpaid--work-moduule (backwaard and forw ward) is beeen estimated d by applyinng the Swisss Wage Index (S SWI) to thee benchmarkk year. 345. U Until the plannned revisioon in 2016/17, equivaleent wages by b General Classificatio C on of

Econom mic Activitiees (NOGA--02) and by activities arre being useed. As from m 2016, we will w work w with NOGA--08 and ISC CO-08 Classsification innstead of thee activities, because thee latter are not available anny more in this t survey since 2012..

34

See alsso: https://ww ww.bfs.admin.cch/bfs/en/hom me/statistics/work-income/suurveys/lse.htm ml and https://ww ww.bfs.admin n.ch/bfs/en/hoome/statistics/w work-income//surveys/ecm.hhtml.

128

Table 77.5 Equivaalent wages (General Classificati C ion of Econ nomic Activvities, NOG GA -02) Average labourr costs by worked houur 1997

2000

15)

2004

2 2007

2010

20133

Wages by N OGA and/or tasks 1 Meal prepaaration

1,2)

2 Washing-uup and putting away crrockery 3 Shopping

2)

33)

30.4

31.1

33.2

34.4

36.2

37.1

30.1

30.8

32.9

34.1

35.9

36.8

33.5

34.3

36.6

38.0

39.9

40.9

4 Cleaning, ttidying

4)

33.5

34.2

36.5

37.9

39.8

40.8

5 Laundry, irroning

5)

28.8

29.4

31.4

32.6

34.3

35.1

40.7

41.6

44.4

46.1

48.5

49.7

31.7

32.4

34.6

35.9

37.7

38.6

49.7

50.8

54.2

56.3

59.1

60.7

46.2

47.2

50.4

52.3

55.0

56.4

53.0

54.1

57.8

60.0

63.0

64.6

46.7

47.8

51.0

52.9

55.6

57.0

71.6

73.2

78.1

81.1

85.2

87.4

41.1

42.0

44.8

46.5

48.9

50.1

14)

44.6

45.6

48.7

50.5

53.1

54.4

Average wage of all employees a Food and beeverage services, actitivities of households as

48.2

49.3

52.7

54.7

57.4

58.9

30.1

30.8

32.9

34.1

35.9

36.8

6 Home mainntenance, handicraft 7 Animals, pllants, gardening 8 Administrattive tasks

6 6)

7)

8)

9 Feeding annd bathing young children

9)

10 Playing w with children, helping with w homework 11 Provisionn of care and assistancce to adults 12 Formal vooluntary work: leadingg function

10)

12)

13 Formal vooluntary work: executtive function 14 Informal vvoluntary work

10,11)

13)

Generalist w ages

employers

2))

1) Noga 52224A, activity 10; 2) Acttivity 37; 3) Noga 60224, activity 31; 4) Activvityt 35; 5) Noga 9301A; 6) Noga 453, 4544, 502, 180; 7) Noga 01; 8) Activities 221, 22, 23; 9) Noga 8511, 8514, 853; 10) Activity A 33; 11) Activityy 36; 12) Upper and m middle management; 13) No management function; f 14) Activitiess 33, 36 and 37; 15) Average A labour costs by worked hour, in CHF. C Sources: F ederal Statistical Officee: Swiss Labour Forcee Survey (SLFS): unnpaid work, Swiss Earrnings Structure Surveey (SESS), Swiss waage index (SWI)

Note: For thhe activities, see table ‘Gross monnthly wage by acttivity - Private and public sectors combined c – Switzzerland’ Available ffrom: https://www w.bfs.admin.ch/bffs/en/home/statisttics/catalogues-daatabases/tables.asssetdetail.1794777.html

346. The monetarry value of all a unpaid household h seervice workk carried outt in Switzerland in

35 2013 is estimated at a CHF 401 billion (appproximatelyy US$ 414 billion b , seee Figure 7.33). pproximatelly CHF 267 7 billion (677% of the total Domesttic workloadd alone amoounted to ap value). Care-related tasks carrried out at home h were estimated e att CHF 93 biillion (23% of the mal voluntarry work at CHF C 41 billlion (10% of o the total value). v total vaalue), formal and inform Work ddone by wom men accounnted for 60% % of the totaal value oveerall. This peercentage varies v dependiing on the field f of activvity: it amou unts to 61% % for domesstic workloaad, approxim mately 62% forr care-relateed tasks andd 52% for voluntary v woork. Compaared with thiis, the GDP P in 2013 haas been estim mated at abbout CHF 63 35 billion (pproduction approach, a ap pproximateely USD 655 billlion).

35

Based on an exchangge rate of 1.0332 (August 155, 2016).

129

Figure 77.3 Monetaary valuation of unpaaid househoold service w work, 2013 3

https://ww ww.bfs.admin.chh/bfs/en/home/statistics/work--income/unpaidd-work/househo old-production-ssatellite-accounnt.html

7.77.1 Empiirical exa ample witth differe ent wage es 347. The selection n of suitablee wages dep pends on thee concept an nd the methhodology as well as

on the aavailable daata sources. However, the t monetarry value of unpaid u houssehold serviice work caan vary considerably deepending onn the wage selected. s Thhe followingg paragraphhs will providee a few exam mples of diffferent choicces of wagee rates for vaaluing Swittzerland’s unnpaid househoold service work and assess the im mpact on thee total amou unt and the varying v effeects on the unpaid househoold service w work activities. 348. Fo or the compparative anaalysis, the fo ollowing waages have been tested:

Version 0: Fourteen V F different wagges rates (coorrespondingg to the Swiiss model as shown inn table 3); V Version 1: Two T differeent wage rattes (refer to Table 7.5):: a activities 1 to t 8 Housekkeeping (CH HF 36.80): m mean of hottel/catering trade work,, d domestic wo ork (correspponds to aveerage labourr costs for activity a 37),, a activities 9 to t 14 Healthh and Social services (C CHF 56.40)): mean of health h and soocial s services, hosspital-emplooyees (NOG GA 8511, 8514, 853); V Version 2: Two T differeent wages raates recomm mended by the t federal high h court (tto m measure dom mestic comppensation): a activities 1 to t 8 housekeeeping (CH HF 30.60), a activities 9 to t 14 care annd volunteeering (CHF 38.40); V Version 3: One O wage rate r : mean of o all emplooyees (CHF F 58.90); V Version 4: One O wage rate r recomm mended by thhe State Seccretariat forr Economic Affairs ( (SECO): minimal wagee for employyment of hoousekeeperss in private households h ( (CHF 22.00). 349. Fiigure 7.4 sh hows estimaates of the value v of houuseholds’ unnpaid servicce work of

sensitivvity to imputed labour costs c for 2013.

130

Figure 77.4 Monetaary valuation of unpaaid househoold service work w by diifferent wages, 2013

Volu untary work

Care work

H Housework

Total unpaid work

0

100

200

300

400

500

600

billions of francs s V V4

V3

V2

V1

V0

© FSO, Neeuchâtel / Source: Swiss Labour Foorce Survey (SLF FS): unpaid workk module, Swiss Earnings E Structuree Survey (ESS) and a others

350. The sensitiviity test to diifferent wag ges for valuiing unpaid household h service s workk with

Swiss ddata gives thhe followingg informatio on; all compparisons aree made withh the versionn 0 represennting the acctual Swiss valuing v metthod. As exxpected, the differencess are importtant accordinng to the seelected wagee rates (betw ween around 10% and 50%). Therre are also ddifferent effects by b activitiess and by sexx. In monetary terms, we w notice thhe most imp portant diffeerences for housework. 351. V Version 3 annd version 4 are demonstrating twoo extremely different annd not muchh

convinccing valuations. Howevver, the imppact of the selected dataa source seeems to be im mportant becausee we notice bigger diffeerences betw ween versioon 1 and verrsion 2 (with h two differrent wage raates for the same s activitties, but diffferent sourcces) as betw ween version n 0 and verssion 1 (with a different nu umber of waage rates, buut the samee source).

7.77.2 Concllusions According too the selecteed wage ratee (s), the vaalue of unpaaid householld service work w can 352. A vary strrongly. As this t empirical example shows, the differencess can be mucch bigger with w a generalist substitutte than withh several sub bstitutes by group of acctivities. Fuurthermore, the t impact of the data source can be importannt. 353. Even when countries c aree working with w differennt data sourrces, harmonnized ISCO O-08

and/or N NOGA-08 equivalent e g groups could allow inteernational comparisonss. Although in the Swiss E Earnings Strructure Survvey (SESS) there is no informationn about wagges in econoomic sector ““Agriculturee and Foresttry” or in prrivate houseeholds, it would be posssible to deffine comparrable professions or ecoonomic activvities. 354. M Moreover, it will be diffficult to findd one fittingg substitute in the markket for all unnpaid

househoold service work activiities. We suspect that activities likke home maiintenance, adminisstrative task ks and especcially the responsibilityy (e.g., orgaanization, ed ducation) foor care 131

tasks would hardlyy be taken onn by a geneeralist. That is why we propose a (few) numbeer of substituutes for at leeast three grroups of acttivities. Alsoo, we wouldd suggest too use means of wages over o all eduucation levells and profeessional possitions.

7.8 U Using an n outputt approa ach to m measurin ng own‐‐use p producti ion worrk of serrvices – United Kingdo om’s e experien nce 7.88.1 Introduction 355. The United Kingdom K is unique in th hat it is the only countrry that regu ularly measuures the

majorityy of own-usse productioon work of services s usiing an outpuut methodollogy – meassuring the outpputs produced rather thhan the inpu uts. The Uniited Kingdom started measuring m unnpaid househoold service work in 20002, when thhe Office forr National Statistics S (O ONS) was thhe first national statistics institute to publish p a hoousehold sattellite accouunt for the United U Kinggdom M recenttly, the ONS S launched the (ONS, 22002; Hollooway, Shortt and Tampllin, 2002). More Measurring Nationaal Well-beinng (MNW) programmee following the publicaation of the report r by the C Commissionn for the Meeasurement of Econom mic Performaance and Soocial Progreess (2009). With the MNW M prograamme’s foccus on widerr measures than just GDP, interestt in the A a result, ONS begann publishing g estimates of the valuee of househoold satellitee reignited. As various different unnpaid houseehold servicce work actiivities betw ween 2009 annd 2015. Thhis culminaated in Apriil 2016 withh the publicaation of a fuull set of hoousehold acccounts for thhe first time sinnce 2002, laargely follow wing the ouutput approaach devised in 2002. 356. O ONS’ decisioon to measuure own-usee productionn work of seervices usin ng an outputt

approacch is largelyy driven by the same arrguments laiid out in Chhapter 3. Fo or instance, it i is it is often faar easier to value v outpuuts rather thaan inputs, esspecially when there iss a comparaable market--equivalent service. Furrthermore, the t output approach a is more methoodologicallyy consisteent with National Accoount techniqques – meassuring and valuing v the good g or servvice produceed. Finally, United Kinngdom’s estimates do nnot rely on time-use datta, which is relativeely limited inn the Unitedd Kingdom. The latest time-use suurvey data relates r to 20000, althouggh data for 2014 2 will bee available by b the time the Guide is publishedd. The fact thhat the United Kingdom does d not neeed to rely onn infrequentt time-use data d allows the t productiion of a e more frrequent timee series of estimates. 357. This case stu udy will describe the Un nited Kingddom’s methodology forr measuringg the

volumee and value of o output foor two activiities of unpaid househoold service work: w own--use producttion of child dcare servicces and ownn-use producction of nutrrition servicces.

7.88.2 Measuring the e gross v value add ded of infformal ch hildcare 7.8.2.1 Methodo ology for m measuring g gross value added off informal childcare 358. O ONS’ methodology for valuing v infoormal childccare (all carre not involvving a monnetary

transacttion and theerefore incluudes the chiildcare of paarents and other o family y members) requiress first measuuring the unnits of outpu ut – in this case, c the tottal number of o hours thaat childrenn are lookedd after inforrmally. In thhe absence of o a single data d source recording innformal 132

hours of care for ch hildren, the ONS adoptt a four-stagge approachh (each sectiion will be explained in more detail furtheer on): r carre (populatioon of childrren*24 hourrs*365 a)) Estimate total annuaal hours of required days). bb) Using avvailable adm ministrativee data, calcuulate the num mber of form mal childcaare hours. cc) Estimatee the numbeer of hours children c speend alone. dd) Total infformal childdcare hourss = 1 - 2 - 3. 359. Fo ollowing thhe estimationn of total innformal chilldcare hourss, there are four f more stages s to

obtain the t GVA: ee) Output of o informal childcare = total hourss*per hour cost c of a chiild-minder. ff) Estimatee intermediaate consump ption of infformal childdcare. gg) Estimatee the inputs from otherr own-use prroduction work w of servvices activitiies (such ass housing annd nutrition services). GVA G of info ormal childcare = 5 - 6 - 7. 7.8.2.2 Measurin ng formal childcare h hours Innformation on both puppil numberss and availaable places in i different types of forrmal care is collected c foor each Unitted Kingdom m region. Largely, this informationn is based on o adminisstrative dataa36 collectedd by variouss governmennt departmeents. For insstance, statiistics on childrenn attending schools andd early-yearrs childcare places for England E is provided p byy the Departm ment for Ed ducation. Ass the requireement for annd use of fo ormal childccare varies for f childrenn of differennt ages, placces are alloccated in the following categories: c 360.

   

Age Grou up 1: under 5 years old d Age Grou up 2: 5 to 7 years old Age Grou up 2: 8 to 100 years old Age Grou up 4: 11 to 15 years old d

361. Fu urthermore,, as demandd for formall childcare varies v by tim me of the yeear, the

methoddology defin nes four typees of day:    

Weekendd = 104 days (52*2) Weekdayy school dayy = 180 day ys (36 weekss x 5 days) Weekdayy working hholiday (school holidayy but workinng week)= 28 2 days (4 weeks w x 5 days pllus 8 bank hholidays) Weekdayy school holliday (schoool holiday and workingg holiday) = 53 days (122 weeks holiday minus m bank holidays)

362. A set of assu umptions proovides the basis b for esttimating forrmal childcaare hours foor each

age group, by timee and type of day. For example, e thee methodoloogy assumees that pupills attend ng child-minnders spendd 5 school ffor 6.5 hourrs on schooll days. Simiilarly, childdren attendin hours on weekday school dayss, and week kday workinng holidays.. Estimates by b age grouup and gregated to oobtain a fig gure for the total t numbeer of hours spent s by alll type of day are agg childrenn in the Uniited Kingdoom in formaal care in anyy one year.

36 26

, The full list of assumptions can be found heree: http://webarchive.natioonalarchives.ggov.uk/20160105160709/htttp://www.onss.gov.uk/ons/ppublications/reereferencee-tables.html?edition=tcm% %3A77-295940).

133

7.8.2.3 Accountiing for time spent alo one 363. Evidence on the amountt of time thaat children are a left unsuupervised (aand thereforre are

not careed for formaally or inforrmally) is limited and very v sensitivve to reporting errors due d to social norms n and beliefs b aboutt the amoun nt of time chhildren shouuld spend allone. A survvey carried out by Kidss Club Netw work in 1997, sponsoreed by Nestléé, estimatedd that 6% off me to an em mpty house. A similar suurvey (Makke Space Yoouth Review w) childrenn return hom conductted in 2007 suggests thhat an estimated 34% of all teenagers return home h to an empty e house. The T sensitivvity of the isssues suggeests that therre is under-reporting byy parents. Due D to the lackk of consisteent evidencee regarding time left unnsupervised d, ONS use the t followinng set of assum mptions. a) No child ag ged 11 or unnder is left unsupervise u ed b) 10% of 12 year y olds, 20% 2 of 13 year y olds, 300% of 14 yeear olds andd 50% of 15 year olds spend time withouut adult suppervision. c) No allowannce for timee spent unsuupervised duuring four weeks w of holliday or bannk holidays. 364. These assum mptions can be b interpretted as a mixx of two extrremes. ONS S could say that

10% off children agged 12 are leeft unsupervvised all thee time. ONS S could alsoo say that ouut of 337 dayys (365 dayss minus fouur weeks paiid holiday oof parent/carrer minus eight days baank holidayy) an individdual 12-yearr-old wouldd spend a tottal of 10% of o their timee unsuperviised. 365. A As Figure 7.5 5 shows, for a 12 year old, this unsupervised time could typically innclude

an hourr in the mornning beforee school, plu us an hour and a a half affter school (e.g., ( walkinng themsellves to and from school), plus bein ng left unsuupervised by y an adult beetween 8.000 a.m. and 4.00 p.m. in thhe school hoolidays whille a parent is i at work. This T scenariio assumes no n time o at the weeekends. Forr a 15-year old, the asssumption inccludes unsuperrvised in thee evenings or the sam me times of day d as a 12 year old, pllus additionnal hours aftter school on n school daays, in the evennings in thee school holidays and at a the weekeend. Figure 77.5 ONS asssumption regarding unsupervissed time

7.8.2.4 Estimatin ng the outp put of info ormal child dcare hourrs 366. A As described d earlier, callculating infformal childdcare hours requires suubtracting foormal

and unssupervised hours h from the t total houurs that chilldren requirre care. To value v this output, ONS usse the cost of o the nearest market-eq quivalent –cchild-mindeer, which coosts approxiimately 134

£4 per hhour per chiild in 2014. The way inn which we value own--use production work of o servicess using the output o apprroach differss from the input approaach. In the former, f we measure m the actuual output of the servicee produced,, and therefo fore it makess conceptuaal sense to value v using thhe cost of thhe market-allternative ouutput. The input i approach, on the other hand,, tends to meassure the unitts of labour to produce a service, and a is thereffore valued at the equivvalent wage raate, whetherr that be on a replacement or oppoortunity-costt basis. As the t input appproach estimatees just the value v of the labour, it iss more diffiicult, as com mpared to thhe output appproach, to derivve a measuree of output that is compparable to output o meassured in Nattional Accouunts. For insttance, one needs n to acccount for inttermediate consumption c n, and GOS S. 367. O ONS’ approaach to measuring the qu uality of infformal childdcare assum mes that the quality

of care given is equ uivalent to a child-minnder. This is unlikely too be the casee in all o an overesttimate in som me cases, and a in otherss an circumsstances, andd will inevittably lead to underesstimate of thhe true valuue of inform mal childcaree. For instannce, ONS juustifiably include sleepingg hours as in nformal chiildcare. How wever, it could be argu ued that valu uing this tim me at the cost of a child-minnder is too high, h and miight be betteer valued att the cost off a babysitteer. On me of the tim me spent in informal chhildcare willl be with paarents, and the otheer hand, som arguablly, better forr a child’s developmen d nt than time with a child d-minder, who w may be looking after 5 or o 6 children at a time. 7.8.2.5 Adjusting g for interm rmediate co onsumptio on and the input of otther own‐u use productiion work off services a activities tto derive GVA 368. The final stag ge of the meethodology is to derivee GVA by making m two adjustmentts. The

first acccounts for inntermediatee consumptiion of houseeholds. Interrmediation consumptioon is measureed using infformation frrom Househhold Final Consumptio C on Expenditu ure, collatedd with United Kingdom National N Acccounts, whiich includess personal effects and clothing c item ms normallly associated with the ccare of childdren. 369. The second adjustment a r recognises t the outpput of otherr own-use production work that w of

servicess activities feeds f into other o areas. In I the case of childcaree, ONS assuumes that caaring for a chhild in the hoome requirees the use off a room. Thherefore, a proportion of the outpuut of househoold housingg services is reassigned as an inputt to informaal childcare. 7.8.2.6 Results 370. Table 7.6 hig ghlights thatt there has been b a 1.0% % decline in formal chilldcare hourss per

child beetween 2005 5 and 2014.. However, over the sam me period, there t has beeen an 8.9% % increasee in the houurs per childd aged underr five, couppled with a 1.6% 1 declinne in hours per p child agged betweenn 11 and 15. The steady y growth in formal chilldcare hours for childreen aged under fi five is consisstent with government g policies aim med at imprroving accesssibility andd affordabbility of chiildcare. Furtthermore, th he participaation rate forr women agged 16 to staate pensionn age with dependent d chhildren incrreased from m 70.6% to 74.1% 7 betweeen 2005 annd 2014. Table 77.6 Estimaated United d Kingdom formal childcare hou urs per child d, 2005-201 14 Under 5

5 to 7

2005

636

1266

1228

1310 1

10088

2010

664

1333

1225

1297 1

10083

135

8 to 10 11 to 15

Tootal

2014 % changee 2005 to 2014

693

1283

1213

1289 1

10076

8.9%

1.3%

-1.2%

-1 1.6%

-1.0%

Source: O Office for Nattional Statisticcs. (2016). Av vailable from https://ww ww.ons.gov.u uk/releases/householdsatelliiteaccounts2011to2014

371. O One of the main m benefitss of this meethodology is i the ability y to comparre market seervices

with ow wn-use prod duction of seervices work k together, and analysee substitutioons betweenn the two. Figgure 7.6 preesents the raatio of inforrmal to form mal childcarre hours. Ovverall, the raatio of informaal to formal childcare hhours grew slightly s (1.99%) betweenn 2005 and 2014; however, this masks significant variatioon between different d agge groups. The T rate of growth g in thhe ratio mal childcarre hours betw ween 2005 and 2014 fo or those ageed 5 to 7, 8 to 10 of inforrmal to form and 11 tto 15 was reelatively low w (-1.5%, 1.4% 1 and 1.77% respectiively). This is unsurpriising given thhat these agge groups are most likelly to attend school, andd have little option otheer than attendinng formal ch hildcare setttings. Howeever, inform mal to formaal childcare hours decliined by 8.8% ovver the sam me period higghlighting th he increasinng extent to which infoormal childccare is substituuted for form mal childcarre settings. Figure 77.6 Ratio oof informal to formal childcare c (Hours)

Source: O Office for Nattional Statisticcs (2016).

372. Fiinally, Figu ure 7.7 preseents both the GVA of innformal chiildcare, and d GVA relattive to

total Unnited Kingd dom GDP. GVA G of infoormal childccare grew by 74.5% beetween 20055 and 2014, att an averagee growth off 6.4% per year. y Most of o the increaase in the vaalue of inforrmal childcarre occurred between 20008 and 201 14 - annual growth wass 7.5% per year. y Growtth betweenn 2005 and 2008 was slightly s less at 4.2% perr year. Giveen that total informal hours only greew by 4.9% % over the 100-year periood, a large m majority of the growth in the valuee of informaal childcare is accounteed for by thee 61.1% inccrease in thee cost of a child c minderr. 373. C Comparing thhe GVA off informal chhildcare witth GDP, Fig gure 7.7 sho ows that the

proportion of inforrmal childcaare GVA to GDP increased by 3.8 percentagee points from m t 17.6% beetween 20055 and 2014. Further, innformal childcare is thee largest of all a 13.8% to home production activities a thrroughout thee 10 year peeriod covereed.

136

Figure 77.7 Ratio oof informal childcare to t GDP

Source: O Office for Nattional Statisticcs (2016).

7.88.3 Measuring the e gross v value add ded of hou usehold n nutrition n services 374. The United Kingdom K deefines the ou utput of houusehold nutrrition servicces as the meals, m

snacks and a drinks prepared p byy the membeers of houseeholds for consumption c n, for whichh no monetarry transaction takes plaace. For exaample, if a household h w to preppare free foood for a were birthdayy party this would be inncluded, wh hereas if theey sell the prepared p foood it would not. Further, if an item of food reqquires no preeparation att all, such ass a chocolatte bar, it shoould not theoretiically be couunted. 7.8.3.1 Estimatin ng the outp put of nutrrition servvices 375. In n the United d Kingdom, there is currrently a lacck of detaileed informatiion on mealls

produceed within thhe householdd. In the absence of thiis data, ONS S estimate the t value off nutritionn services within w a houusehold usin ng data from m the Family Food Surv vey, publishhed by the Deppartment forr Environmeent Food annd Rural Afffairs (DEFR RA). This suurvey proviides informaation on caloories consumed at hom me, which ONS O uses as a proxy forr volume prrepared. This asssumes that consumptio c on is equal to productioon, and doess not make any a adjustm ment for food prooduced but not eaten. F Further, no adjustment is made forr the type orr quality of the caloriess consumed, and it is quuite likely thhat the estim mates will include snaccks that requuire no preparaation. However, the data does allow w the separaation of alco oholic beveerages, whicch are removeed from the analysis. 376. To value the output ONS uses inforrmation on consumptio on and expenditure of ccalories

eaten ‘oout’ (not souurced from household supplies) s from the Fam mily Food Su urvey. The output of nutrition servicees equals exxpenditure per p calorie eaten e out muultiplied by the total nuumber n. of calorries eaten in

137

7.8.3.2 Adjusting g for interm rmediate co onsumptio on and the input of trransport seervices to derivee gross valu ue added 377. Fiinally, to esstimate GVA A, ONS adjust for interrmediate co onsumption and for the input

of otherr own-use production p o services activities. of a A with childdcare, interm As mediate consum mption relatees to items w within Houssehold Finaal Consumpttion Expendditure to whhich are related to private trransport (e.gg., fuel, tyrees etc.). Furrther, ONS assume a thatt private houusehold transporrt is consideered an inpuut to the outtput of nutriition servicees. This acccounts for thhe fact that an element of the market price of meeals eaten ouut will incluude transporrtation costss of T is accouunted for byy applying a proportion n of the outp put of privatte purchassing food. This househoold transporrt as input too nutrition services. s Thhis is based on the propportion of tootal private miles travelled on shoppping trips. GVA is esttimated as output o minuus intermediiate mption and thhe input of transport seervices. consum 7.8.3.3 Results 378. Fiigure 7.8 sh hows that grrowth in thee total numbber of caloriies eaten in was largelyy flat

betweenn 2005 and 2014, with average ann nual growthh of negativve 0.2%. The 1.8% incrrease betweenn 2008 and 2009 was laargely offseet by a 2.2% % decline beetween 2013 3 and 2014. This result iss surprising given that the t United Kingdom K poopulation has grown byy 6.9% betw ween 2005 annd 2014. Th his results inn a reductionn in the num mber of calo ories eaten in i per persoon of 8.1% beetween 2005 and 2014. 379. Fu urthermore,, expenditurre per 1,000 0 kilocaloriees (kCals) (eexcluding alcohol) a incrreased

by 45.1% from £4..36 to £6.333 between 2005 and 2014. Most off the increasse occurs beetween 2005 annd 2012, whhere the exppenditure peer calorie grrew by an avverage of 5..3% per yeaar. Most notablyy, expenditure per 1,0000 kCals incrreased by 122.7% betweeen 2010 annd 2011. Thiis was driven bby an 8.6% decline in reported r callories consuumed out co oupled with an increasee in expendiiture of 3.0% %. More reccently, betw ween 2012 and a 2014, av verage grow wth in the coost of caloriess consumed out of the house h only grew g by an average of 0.4%. The recent slow wdown in the cost of calorries correspoonds with ONS’ O Consuumer Price Inflation I ind dex for restaaurants fes. While thhe rate of innflation for restaurant r a café servvices was 4.8% in 2011, it and and cafe declinedd in 2012 (3 3.3%), 20133 (2.8%) and d 2014 (2.5%). Figure 77.8 Volumee of caloriees eaten in and a expend diture eaten n out, 20055-2014

Source: O Office for Nattional Statisticcs (2016).

138

380. Fiigure 7.9 sh hows the GV VA of nutrittion servicees of househholds increaased by 46.44%

betweenn 2005 and 2014. This was largelyy driven by average ann nual growth h of 6.7% beetween 2005 annd 2012. Hoowever, growth in the value v of nuttrition services declinedd by 6.8% between b 2012 annd 2014, driiven by a deecline in thee number off calories coonsumed at home, and a flatteninng of the co ost per calorrie eaten outt over this period. p 381. In n 2014, the value v of nutrition serviices was £144.3 billionn, equivalen nt to 7.9% off GDP.

This is a largely sim milar position to 2005. However, within w the period p consiidered nutriition ortion of GD DP has flucttuated betweeen 6.8% in n 2007 and 9.3% 9 in 20112. servicess as a propo Figure 77.9 GVA of nutrition services off household ds

  Source: O Office for Nattional Statisticcs (2016). 

7.88.4 Concllusions 7.8.4.1 Strength hs 

 



Once the volume of output is esstimated, it is relatively y straightforrward to vallue this m output, inn a way thatt is consisteent with Nattional Accouunts, by usiing just the marketequivalen nt cost of thhe particularr service. Thhis is in conntrast to the input approoach which, ussing inform mation on hours of inputt and wagess yields an estimate e thaat is much moore in line with w compen nsation of em mployees. Further F adjuustments, suuch as intermediiate consum mption, and GOS are reequired to esstimate outp put in the innput approachh. The fact that t the metthods adoptted here are consistent with Nationnal Accountts, allows diirect comparrisons betw ween United Kingdom GDP G and the GVA of unpaid u household service work. w a nutritionn The data required foor measuringg the GVA of informall childcare and i available on an annuual basis. Thhis allows a much moree frequent tiime services is series forr analysis thhan, for exam mple, input approachess based on time-use t informatiion. A large proportion p oof data requiired for Uniited Kingdoom’s output approach iss already freely fr availaable, as adm ministrative data. d This means m that th he cost of

139

compiling g many asppects of the household h s satellite account is relattively low, and does not require besppoke data collection exxercises. 7.8.4.2 Weaknessses 





United Kingdom K esttimates of in nformal chilldcare do noot include some paid caare which takkes place, bbut for which h ONS is unnable to find d any data. This includdes care by babysitters and auu-pairs, as well w as out-oof-school cllubs and hooliday play schemes s y old. for childrren over 8 years Measuress of informaal childcare depend larggely on estiimates of thhe amount of time that childdren spend unsupervise u ed. In the abbsence of haard evidencee, these estim mates are reliannt on workinng assumptiions. In the future, ONS S hope to im mprove this situation by analysinng 2014 tim me-use data which w will be b availablee in 2016. p to provide p breaakdowns byy gender, agge and otherr sociodemoographic It is not possible variables in ONS’ ouutput approach. This iss important informationn for assessiing inequalitiies in own-uuse producttion of serviices activitiees, and to ennhance the usefulnesss of measurres for policcymakers.

7.9 M Measurin ng conssumption of fixe ed capittal for ow wn‐use p producti ion worrk of serrvices prroductio on in Ita aly, 2002 a and 2008 8 382. Fiigure 7.10 highlights h thhe value of products thhat are reallo ocated awayy from houssehold

final coonsumption expendituree to intermeediate consuumption andd capital forrmation in 2002 2 and 20008. It showss that aroundd 60% of hoousehold finnal consump ption expennditure is alllocated to interm mediate connsumption, and aroundd 4% to capiital formatio on. Italy hass traditionallly used the PIM M model for estimating the consum mption of fixxed capital in i their hou usehold satellite accountt. Figure 7.110 highlightts that the capital consuumption of durable gooods for ownn-use producttion of serviices activities is estimaated at €33.99m in 2002,, decreasing g to €30.8m m in 2008. L Looking at thhe 2008 figgure more cllosely, 96% % of the capiital consumpption of durrable goods is due to deppreciation, w with the rem maining 4% accounted for by capittal formatioon. Figure 77.10 also hiighlights thee breakdownn of househhold final coonsumption in the Italiaan national accounts between b inteermediate consumption c n (37% yearr 2008) and d investmentts % year 2008)). Depreciattion amountted to €27.99m in 2002 at a current prices (durablee goods 3% comparred to €32.0m in 2008. Since depreeciation is less than thee amount off the investm ments made byy householdd (€33.9m inn 2002 and €30.8m in 2008), theree is a variattion of the assets a and equuity position n of €6.0m in i 2002 andd €1.2m in 2008. 2 In othher words, thhe value of in purchassed goods was w greater than t the vallue of goodss written off ff in Italian households h 2008.

140

Figure 77.10 Breakd down of final consump ption in thee national accounts a in n intermediiate consum mption and durable good ds, Italy, 20002 and 200 08 2002 Final in ndividual consum ption 2002

Final consum mption h household prod duction

771.277

461.716

100

60

In ntermediate Durable go oods Consu umption of consumption househo old fixed d capital household productio on production million of euro e 2 33.870 27.878 275.692 percentage 36 6 4 82

Net fixed capitall N formation

5.99 92 1 18

2008 Final in ndividual consu umption 20 008

Final consumption F ho ousehold prod duction

979.699

617.504

100

63

Inte ermediate Durable goo ods Consum mption of con nsumption household d fixed capital c ho ousehold production n prroduction million of euro e 330.230 31.964 30.760 percenta age 34 3 96

Ne et fixed capitall formation

7.10 Examp ples of co ontinuo ous time e‐use su urveys – United S States 383. This section describes th he two sources of US tiime-use datta - the Multinational Time T

Use Surrvey (MTUS) and the American A Time T Use Suurvey (ATU US) – and so ome of the issues i with inttegrating theem into a time series. 384. Prrior to 2003 3, there were a number of small-sccale time-usse surveys, carried c out by b the

Universsity of Mich higan in 19665–66, 19755–76, and 1985 and thee Universityy of Marylannd in 1992–93 and 1998––99. The reesponse sizees of these surveys s rangge from 1,20 00 to 10,000 diary c ry harmonizzed set days. Thhese surveyys were laterr incorporatted into the MTUS, a cross-countr of time--use surveys. 385. The annual ATUS A surveeys which began b in 20003, and are conducted c by b the U.S. Bureau

of Laboour Statistics. They are large scale with responnse sizes off 15,000 to 20,000 2 diaryy days. To estim mate a time series of ow wn-use prodduction worrk of servicees, the ATU US and MTU US data sets are combined into a singlee data set. This T involvees overcomiing a numbeer of issues.. The o surveys use different classificatio c ons. The MT TUS surveyy split houseehold first is tthat the two time usee into 41 different cateegories, seveen categoriees of which are includeed in own-usse producttion work off services: housework, h cooking, oddd jobs, garrdening, sho opping, chilldcare and dom mestic traveel. The ATU US survey co ontains a much m more detailed d accoounting of househoold activitiees. To retainn comparabiility betweeen the two data d sets, AT TUS categories are reclassiified into onne of the sevven MTUS categories. 386. The second issue i is that MTUS data is drawn from f period dic surveys. To place thhem on

an annuual basis, wee interpolatee hours betw ween surveyy years for each e categoory. The Maaryland 141

1.20 04 4

surveyss were not used u becausee the 1998––99 survey hhas a small sample and d the 1992–993 survey is i biased heeavily towarrds the weekkend. To obbtain annuall estimates, hours betw ween survey years y for eaach categoryy are interpo olated usingg adult popu ulation by gender g and work w status. 387. The main adv vantage of the t ATUS data d is that it i is the annuual - the on nly annual tiime-use

survey - and that alllows for more m frequennt estimates of own-usee production n of services. u to exam mine time alllocation at a higher freequency. Ussing 11 Therefoore, these daata can be used years off ATUS datta, the U.S. Bureau of Economic E A Analysis hass released periodic estim mates of own--use producction work of o services, which trackk activities over o a recesssion (Bridggman et al., 2012; Bridgmaan, 2016b). These T estim mates providde a unique resource fo or policymakkers and researchhers to betteer understannd the businness cycle.

7.11 Examp ple of ussing time e‐use su urveys ‐ a light diary / full d diary – F Finland 7.111.1Introduction 388. Sttatistics Fin nland has coonducted fouur nationally representaative time-uuse surveys,,

conductted at interv vals of approoximately ten t years. Thhe most reccent survey dates back to t 2009–22010 (Pääkkkönen and Hanifi H 2012)). However,, faster provvision of datta on changges in n for example, e foor use in thee household satellite account. For this t the use of time is needed, d a light diarry that was tested at itss Survey purposee, Statistics Finland hass developed Laborattory by meaans of the foocus group interview i prrocedure. The T aim is too study wheether results ccomparablee with those of the full-scale diary can be prod duced with the t light diaary.

7.111.2Data 389. The light diaary was testeed with a saample of 1,0 000 persons, by mail, inn connection with

the Finnnish time-usse survey inn 2010. Resp pondents coompleted thhe diary withh 35 pre-codded activitiees, coveringg a one-day period. Thee target age of respondeents was lim mited to betw ween 25 and 64. There were w two diaary-keeping g periods in March, eacch lasting onne week. A wards to all sampled s perrsons. remindeer card was sent afterw 390. C Control data was establiished using informationn received in diaries fro om the full--scale

time-usse survey. The T date of survey s comppletion, the age of the respondent, r and the 35m were consiistent betweeen the lightt-diary and the control data. categoryy classificattion system 391. C Characteristiics of the Fuull-scale TU US and the Light L Diary Survey are presented in i Table

7.7.

142

Table 77.7 Characcteristics off the Full-sccale Time Use U Surveyy and the Light L Diary Survey Type of su urvey Data colle ection mode Fieldwork k period Sample Coverage Who com mpletes diary Number of o diary days Descriptio ons/pre-coded Activity de etail Self-comp pletion/interview wer Diary/reca all Time perio ods Main and secondary actiivity Location Who with Coding Achieved sample Response e rate Editing Imputing Weighting g Other dat a collected

Full-scal e Time Use Su urvey Separate survey C CAPI or CATI April 2009 9 – May 2010 Househollds / persons Householld population 10 0 years or more e Householld members 10 years or more 2 days, one o weekday + one weekend day Responde ent writes in descriptions of activity Coded to 146 activity codes pletion with inte erviewers' Self-comp instructio ons

Precoded d "light" diary Separate survey s Postal inqu uiry March 2010, two survey weeks w Persons 25–64 yea ars old Finnish speaking s popula ation One perso on per household d 1 day

Responde ent fills in the diary during the day d 10 minute e time periods Main and secondary act ivity Location coded based on n other diary informatio on Who with h recorded Activities are centrally co oded 7,480 dia ary days Householld interview: 59% %, Person interview: 48%, Diary ove erall: 39% Fully editted Missing evening e sleep was w imputed for 114 diaries Yes, with h calibration Householld and individual interviews, we eek diaries for the employed

Responden nt fills in the dia ary during the da ay 10 minute time periods Main activi vity, no seconda ary activity reque ested

nt selects pre-c coded activity ca ategories Responden 35 activity codes viewer Self-complletion, no intervi

No location n coded Who with recorded r Activities pre-coded p 174 diary days d Diary 17% dited Slightly ed No imputin ng Yes, with calibration c Demographic background d questions

7.111.3Non‐rresponse e 392. The non-resp ponse rate was w 82.6 % with w only 174 individuuals from thhe sample reeturning

the diarry. Large noon-response is harmful in two wayys: it reduces the sample size, increeasing the stanndard error of o estimatess. Further, itt can cause bias due resspondents differing d froom nonresponddents. 393. The high non n-response rate r in this survey s is unnderstandabble. Non-response rates are

often hiigh in mail enquiries, e c coupled withh the fact thhat respondeents were reequired to fiill in the diary ovver 24 hours, entailing a large respponse burdeen. 394. The characteeristics of no on-respondeents were sttudied usingg variables from f the sam mpling

frame. Distribution D ns by gender, age and education e off non-respon ndents diffeered from thhe populattion (Pääkköönen and Väisänen, 2012). The noon-response rate of malles was seveen % higher tthan femalees. Males agged 25-34 haad the higheest non-respponse rate (991.4%), whhile femaless aged 55-64 4 had the loowest (77.9% %). Finally,, the study highlighted h that response rates were poositively corrrelated to education. e 395. In n spite of the high non--response raates, valuablle informatiion was retrrieved usingg the

availablle auxiliary informationn. Post-strattification annd generalissed regression estimatoors helped to t reduce thhe non-respoonse bias. Post-stratific P cation accorrding age grroup and geender combinned with caliibration estiimators werre used for the t light diaary data. For a more deetailed descripttion of the weighting, w s Pääkkönnen and Väiisänen (2012). see

143

7.111.4Classification of activities 396. The light-diaary classified main activ vities into 335-categoriees. The classification was w

orderedd hierarchicaally so that categories related r to peersonal caree were listedd first, folloowed by gainful work and studying, traavel, domestic work annd eventually y by free-tim me categoriies (Ås, 1978). Furthermore F e, the designn of the classification allows a direcct comparabbility to the 146categories used in the t full-scalle survey. The T control data was classified by a corresponnding 35-category classiffication for the comparrison. Due too the low nuumber of obbservations in the light diaary data, thee final analyysis condennsed the classsification to 15-categoories (see Taable 7.8). 397. R Respondents were askedd to record only o one activity for eaach time sloot. Respondeents

who weere doing caarrying out two t tasks siimultaneoussly were insstructed to select s only the t activityy they regardded as the main m activity y. Unfortunnately, not evverybody fo ollowed theese instructtions - at leaast two activvities per eppisode weree recorded inn 79% of thhe diaries, while w 30% off respondentts recorded three activities per epissode. A totaal of 37% reecorded emppty episodees of time. 398. O Overall thouggh, the vastt majority (8 82%) of epiisodes had only o one acttivity. 11% and 4%

of episoodes had tw wo and three activities reespectively. Finally, 3% % of episod des were left ft empty. It was im mpossible to t ascertain which of thhe simultaneeous activities the respondents hadd viewed as the mainn one. To reesolve this issue, the claassification category with w the shorrtest main activity y. code, orr the highesst-level activvity, was deeemed the m 399. Fiinally, the following f coorrections were w made at a the editing g stage to harmonise h thhe

definitioon of main activity witth the full-sccale time-usse survey: a)) If gainfull work was recorded ass the seconddary or thirdd activity, itt was changeed into the main activity. bb) If sociallising was reecorded as the t main acctivity and thhe second recorded r acttivity was som mething elsee, the second d activity was w made thee main activvity. cc) If resting g was recorrded as the main m activitty and the seecond recorrded activityy was somethinng else, thee second activity was made m the maain activity. 400. O Once these changes c werre processedd, durations were calcuulated for the main activvity

categories. The tim me spent in gainful g worrk increasedd by 26 minu utes as a ressult of realloocating o tertiary activity a to a main activiity. By conttrast, the tim me used for meals it from secondary or m and snaacks decreassed by 18 minutes.

7.111.5Resullts 401. These resultss present tim me spent in the followinng main cattegories: perrsonal care,, gainful

work annd studying, domestic w work, free time t and traavel. The tw wo surveys produce p sim milar amountts of time fo or these maiin categories with the exception e off domestic work w on whhich the time speent is 33 miinutes shortter in the ligght diary thaan in the conntrol data. The T size of the t differennce is almosst the same for men andd women.

144

Table 77.8 Time u used for maain activitiees by type of o diary and d gender (Minutess per day) Total

Activity Personal care, total Sleep and d resting Meals and d snacks Washing, dressing Gainful em mployment, stud dy Domestic c work, total Childcare mestic work Other dom Free time e, total Socialising g Participatiion and culture Physical exercise e Computing g Reading TV, video,, radio Other free time Travel ed Unspecifie Total Diary days s

Fullscale TUS 630 502 80 48 240 173 25 147 317 43 18 42 31 35 130 18 69 12 1,440 366

Men

Light diary 624 483 90 51 243 140 17 122 309 67 16 30 30 44 106 16 72 52 1,440 174

Difference (TUSLight diary) 6 19 -10 -3 -3 33 8 25 8 -24 2 12 1 -9 24 2 -3 -40 0

Wom men

Fullscale TUS 627 503 80 43 260 132 13 120 337 48 18 47 29 32 141 22 71 12 1,440 173

Lightt diary y 62 21 49 93 8 88 4 40 25 50 9 98 7 9 91 33 39 6 64 1 14 2 26 3 36 4 44 13 35 2 20 8 84 4 49 1,44 40 7 70

Difference (TUSLight diary) 6 10 -8 3 10 34 6 29 -2 -16 4 21 -7 -12 6 2 -13 -37 0

ullFu sca ale TU US 633 500 79 53 220 213 38 175 296 37 17 37 33 38 119 15 67 12 1,440 193

Light diary 628 474 92 62 236 182 28 154 279 69 18 35 24 44 76 12 60 56 1,440 104

DifferD ence (TUSLight diary) 5 26 -13 -9 -16 31 10 21 17 -32 -1 2 9 -6 43 3 7 -44 0

Source: Stattistics Finland

402. A Among the main m categories, the ressults of the two t surveyss deviate moost in the tim me used

for dom mestic work.. The light ddiary producces 33 minuutes less tim me for domeestic work per p day than thee full-scale diary. Theree are differeences particcularly in the home maiintenance annd childcarre classes. Possible P reaasons for thee observed differences d in the homee maintenannce class arre high non--response raates of the liight diary orr possibly due d to differrences in tennure type acrross the twoo surveys. Unfortunatel U ly, the latterr cannot be explored ass the light diary d does noot record infformation onn housing. Despite D the overall diffferences in home h mainttenance, the amoount of timee spent on reenovations and a repairs is exactly the same in both dataseets (eight m minutes). 403. Time spent caring c for chhildren is appproximatelly one-third d less in the light diary

comparred to the fuull-scale diarry. Howeveer, when thee analysis iss restricted to t only those who have chhildren agedd less than 18 years oldd and living at home, thhe differencee between thhe two datasetss is greatly reduced r (ligght diary daata 45 minuttes vs. contrrol data 46 minutes). m The time used forr travel (trav vel to workk, school, shhop, gym, orr the like, allso on foot) is almost thhe same in both diaries (4% % difference). 404. Slleep and ressting are examined together as it seems that th he respondeents had diff fficulty

in makiing a distincction betweeen the two (see ( also Laader et al., 2006). 2 In tim me-use classificcations, sleeeping usuallly comes un nder personal care and resting undder free timee (e.g., Eurostaat, 2009). Thhe light diarry results reecord less slleep and mo ore resting thhan the fulll-scale diary. F Further, totaal time spentt sleeping and a resting recorded r in the light-diary is less than the full diarry. On the other o hand, tthe light diaary observes slightly more m time foor meals thann the full-scaale diary. 405. The two surv veys report almost a equaal total amoounts of timee spent on gainful g

employyment and sttudy. For gaainful emplooyment, thee difference is only fou ur %, in conttrast to 145

studying time wherre the light diary reportts estimatess which are almost fourr times as much m time as the full-scaale diary. Thhis perhaps is not a surpprise given that the agee range of thhe r s is 25 to 644, and thereffore the sam mple size off full-time sttudents amoong survey respondents them is low. 406. The total amount of freee time only deviates by y 2.5% in thee datasets. The T most nootable

differennce betweenn the data caan be seen in socialisinng: the light diary produuces 56% more m time forr it than the full-scale diary. d This is i likely duee to responddents undersstanding socialissing in a way y that differrs from the coding pracctice in the full time-usse survey. 407. Fiinally, the diaries d contaained 13 miinutes of unnspecified time-use and d 39 minutess of

empty eepisodes, totalling 3.6% % of the 1,440 minutes of the day. Missing daata on sleep in the eveningg was imputted in the fuull-scale surrvey, which reduced tim me in the unnknown cateegory (Väisännen, 2012). In I the contrrol data, the time that reemained in the unknow wn category was 12 minutess, or 0.8 % of o the day.

7.111.6Concllusions 408. Experiences gained from m the testingg of the lighht diary as a postal inqu uiry indicatee that

assistannce from intterviewers is needed to reach a satisfactory reesponse ratee and to enhance quality.. In this com mparison, thhe effect of non-respons n se was correected with weighting. w 409. D Despite low response r raates (17%), the t diaries produced p esstimates thaat were closee to

each othher in most of the mainn time-use categories. c H However, thhere were nootable diffeerences in classes relating to t own-use production of services such as hom me maintennance and hird less tim me for childccare than thhe full-scalee diary, childcarre. The lighht diary prodduces one-th but wheen the exam mination is reestricted to only those who have children c ageed under 18 living at homee, time spennd on childccare is almost the same in both datasets. Moree positively,, the light-diary allowedd separate distinctions in i the category renovattions and repairs categoory – an importaant aspect off the househhold satellitte account. 410. M Most respond dents foundd it impossib ble to recordd time use by b choosing g just one main m

activityy. Apart from m main activvities, the diary d shouldd also allow the recordiing of one parallel p activityy. The respondents them mselves should be allow wed to decidde which is the main annd which tthe secondarry activity (see ( also MccGinnity et al., 2005). The editingg of the dataa to correspond with th he full-scale survey dataa would theen be easier in the categgories of o a web qu uestionnaire could socialissing, physicaal exercise aand televisiion watching. The use of be testeed as an alteernative to a light paperr diary. Thiss could also o improve thhe quality of the diaries.

7.12 An exa ample off using a a Labou ur Force Survey module e to m measure e labourr input tto unpaiid house ehold se ervice w work – – Switzer rland 7.112.1Introduction 411. In n the late 19980s and thee 1990s, thee National Council C in Switzerland, S , noticing thhe

absencee of statisticcal informattion on dom mestic and faamily worklload as welll as on voluuntary 146

work, reequested more informaation about unpaid u household serv vice work. As A a result, in i 1995 the Exeecutive Fedeeral Councill of Switzerrland instruccted the Sw wiss Federal Statistical Office O (FSO) tto collect staatistical datta on unpaid d householdd service woork. 412. The results were w intendeed to providde a basis foor statistics on o hours sppent on paidd and

unpaid household service s worrk throughouut society and a their distribution beetween menn and he ratio of value v betweeen paid worrk and unpaaid householld service work w women. Further, th p p provide an addition a to the t Nationaal Accounts.. As a resultt, the FSO would potentially developped the project of unpaiid householld service work w statisticcs, which beecame an official current statistic sinnce 2007.

7.112.2Imple ementatiion of unpaid hou usehold sservice w work mod dule into L Labour Force Survey 413. To measure unpaid u houssehold serviice work, a specific moodule was ap ppended to the

Swiss L Labour Forcce Survey (S SLFS) in 19997 and every three or four f years thereafter. t T The latest reesults date from f 2013. 414. The “unpaid work modu ule” providees data on activities a succh as domesstic duties,

childcarre and volunnteering in Switzerlandd. The questtions identify the differrent unpaid househoold service work activiities, recordding the timee spent on th hem. The reelatively wiide spectrum m of the SL LFS enabless the data to be disaggreegated in many m differennt ways. Fuurther, it allows tthe interestiing possibility of comb bining inform mation abouut time spen nt on paid work w and tim me spent on unpaid u houssehold serviice work for the same individuals. i . 415. A As individuaals were queestioned oveer the phonee for the SL LFS, it was important i too

explain concepts inn the simpleest way posssible. The main m aims of o the questions concernning s worrk were to define d the diifferent kindds of unpaidd householdd service unpaid household service ure the time spent on thhese tasks. Two T large arreas of unpaaid househoold work annd to measu service work were identified: domestic annd family workload, w an nd voluntary y work (Figgure Domestic woork, childcaare and assisstance to addults includees tasks succh as cleaninng, 7.11). D cookingg, shopping and adminiistrative tasks as well as a childcare and lookinng after peopple in need off care in onee's own hom me (for the liist of covered activitiess (Table 7.99). Voluntarry work forms thhe second category, c coonsisting of formal voluuntary work k for organissations, institutiions, clubs and a unions and informaal voluntaryy work. Infoormal volun ntary work includes, for examp ple, neighboourly help, looking afteer someone else's childdren, domesstic on services (see Table 7.11) work foor friends orr relatives, ttransportatio

147

Figure 77.11 Unpaid d household d service work in Swittzerland

416. The chosen groups g of acctivities are as much ass possible coomparable with w the outtput-

3 tables on o unpaid hoousehold seervice work published by b Eurostat37 or OECD D38 on time-uuse surveyss. In order too avoid genneral estimatted values ffor an average week, thhe questionss take accountt of one partticular day (reference day), d the preeceding dayy of the inteerview or thee day before tthat (no inteerviews are held on Sunndays). This enables thhe possibilitty to estimatte the time speent on one particular p taask as well as a the total of unpaid household h seervice workk perform med on one particular p d In addittion, the surrvey asks th day. he quantity of o time spennt on formal as a well as in nformal vollunteering during d the foour weeks preceding p thhe interview w.

417. The list of vaariables and d the questioonnaire from m 2013 are available a att:

https://w www.bfs.addmin.ch/bfs//en/home/sttatistics/worrk-income/ssurveys/slfss.html

7.112.3Surve eys 7.12.3.11 Swiss La abour Forcce Survey 418. The SLFS is sent out to individualss every yearr. The main purpose of the SLFS iss to

providee informatioon on the strructure of th he labour foorce and emp ployment behaviour paatterns. Strict addherence to o internationnal definitions allows Swiss S data to o be comparred with OE ECD and EU U data. Sincee 2010, the SLFS is con nducted on a continuou us basis. Th he surveys are a completted by telepphone basedd in the sam mpling of inddividuals. 419. A Addresses arre selected at a random frrom the FSO O’s sample register. Thhis is mainlyy based

on officcial records of the inhabbitants of thhe municipaalities and cantons. Since 2003, ann additionnal sampling of foreignners (15,0000 until 20099 and 21,0000 from 20100) was seleccted from thhe central information system s on migration m (Z ZEMIS). Froom the 2nd quarter of 2014, 2 a selectedd from the FSO’s F sampple register. The statistiical basis annd this subbsample is also survey units u are thee permanennt resident population aged a 15 and older. The SLFS is connducted as persoon survey, i.e. only onee person perr householdd is selected for the inteerview. 37 38

Availaable from http:://ec.europa.euu/eurostat/en/w web/products--statistics-in-ffocus/-/KS-NK K-06-004 Availaable from http:://www.oecd.oorg/gender/daata/balancingppaidworkunpaiidworkandleissure.htm

148

420. In n total, 126,000 intervieews are connducted, witth participatting individ duals surveyyed 4 3 times ovver a periodd of one andd a half yearr. In 2013, the t non-respponse rate was w 20.4%.39

household d service wo ork modulle 7.12.3.22 Unpaid h 421. A Approximateely two thirdds of the sam mple was questioned q in n the unpaidd householdd

service work modu ule - amounnting to arouund 25,000 individuals. i . As in the SLFS, S the suurvey p per unit is tthe permaneent resident population aged 15 annd older andd only one person househoold is intervviewed. Thee module is only surveyyed at the fiirst contact-interview - there is no longgitudinal-infformation onn unpaid ho ousehold serrvice work. The modulle is consistting of a short bllock of quesstions, durinng on averag ge 4.8 minuutes.40 422. The question ns asked include:

       

Main respponsibility for domestiic tasks and for childcaare Hours spent on houssework on thhe referencee day (by eaach of the 8 predefinedd tasks) c of adullts on the reeference dayy (4 Hours spent on lookking after chhildren and care tasks) t and chhildcare on the t referencce day (conttrol Total houurs spent onn domestic tasks question)) Participattion in form mal voluntarry work in thhe 4 weeks prior to interview (8 categoriees of associaations) Hours spent on form mal voluntarry work in thhe 4 weeks prior to inteerview (by category of associatiion) Participattion in inforrmal volunttary work inn the 4 weekks prior to in nterview (77 categoriees of activitiies) Hours spent on inforrmal volunttary work inn the 4 weekks prior to in nterview (by category of activity)

423. R Regarding metadata: m

   

The standdard error of o the mean for all dom mestic and faamily worklload is abouut 0.2, for the innvolvement in formal voluntary v woork it is 0.3% % and for thhe involvem ment in informal voluntary w work it is also 0.3%. 10, the referrence day has h been inteegrated in th he weightinng model off the Since 201 module because b the interviews are not spreead equally over the weeek. The non--response is the same as in the SLF FS survey: 20.35% 2 in 2013. 2 The surveey-costs at about a CHF 200,000 (appproximately $205,000041).

39

Availaable from https://ww ww.bfs.admin n.ch/bfs/en/hoome/statistics/w work-income//surveys/slfs.aassetdetail.689 97.html 40 Availaable from https://ww ww.bfs.admin n.ch/bfs/en/hoome/statistics/w work-income//surveys/sake--ua.html 41 Based on exchange rate r on 20/04//2016.

149

7.112.4Key rresults from the L Labour Fo orce Surv vey ‐ mod dule 2013 3 Table 77.9 Domesttic and fam mily worklooad by grou up of activitties, 2013 Domest tic and family w g of activ vities, in 2013 (Hours on n average perworkload week) by group Hours on average per wee ek Women +//- h

hrs

Men hrs

+/- h

Tottal hrs

+/- h

Total of households: Total of hours h spent on domestic d and fam mily work load

27.5

0.4

17.3 3

0.3

22.5

0 .3

Meal prep paration

6.8

0.1

3.4 4

0.1

5.2

0 0.1

Washing--up and putting away a crockery, laying the table

2.5

0.0

1.7 7

0.0

2.1

0 0.0

Shopping g

2.5

0.1

1.8 8

0.1

2.1

0 0.0

Cleaning, tidying

4.4

0.1

1.8 8

0.1

3.1

0 0.1

Laundry, ironing

2.3

0.1

0.6 6

0.0

1.5

0 0.1

Home ma aintenance, hand dicraft

0.8

0.1

1.7 7

0.1

1.2

0 0.1

Animals, plants, gardenin ng

2.2

0.1

1.8 8

0.1

2.0

0 0.1

Administrrative tasks

1.1

0.1

1.5 5

0.1

1.3

0 0.0

Total care e and assistance e

5.1

0.2

3.3 3

0.2

4.2

0 .1

Feeding a and bathing youn ng children

1.3

0.1

0.6 6

0.1

1.0

0 0.0

Playing w with children, helping with homew work

3.2

0.2

2.3 3

0.1

2.8

0 0.1

Accompa anying children, taking t them out

0.4

0.0

0.3 3

0.1

0.4

0 0.0

Provision of care and ass istance to adults s Only hous seholds with child(ren) or adults in need of care: and bathing youn ng children Feeding a

0.2

0.1

0.1

0.0

0.1

0 0.0

9.5

0.5

4.6 6

0.4

7.1

0 0.3

10.7

0.5

7.2 2

0.4

9.0

0 0.3

1.3

0.1

1.0 0

0.2

1.2

0 0.1

Provision of care and ass istance to adults s

11.4

4.3

4.5 5

1.5

8.3

2 2.5

npaid work, perm manent resident Total of hours spent on un o (voluntary work w included) population aged 15 and older

28.9

0.4

18.4 4

0.3

23.8

0 0.3

Playing w with children, helping with homew work Accompa anying children, taking t them out

+/- h: confideence interv al 95% in hoours per w eek © FSO, Neucchâtel / Source: BFS - Sw iss Labour Force Surv S ey (SLFS): unpaidd w ork module

424. Table 7.9 hig ghlights thatt women sppend just over 10 hours more of tim me than menn on

domestiic and familly workloadd (27.5 hourrs per weekk compared with w 17.3 hours). h Furtherm more, as Figure 7.12 below showss, women with w partnerss and childrren where thhe youngest child is aged a 0-6, speend on averrage 55.5 hoours per week, on domestic and faamily o working hours of a person p in fuull-time workloaad. This excceeds the noormal weekly number of employyment, altho ough it shouuld be noted that this woork is carrieed out 7 day ys a week. In this househoold categoryy, men also participate in these tassks with an average of 30.5 hours per p week. 425. Fiigure 7.13 highlights h thhat althoughh working and a family roles r are uneequally diviided in

Switzerrland, the tootal amount of hours woorked (totall of employm ment, domeestic and fam mily workloaad) by men and womenn is generallly the same in comparaable family situations. Partners P in couple househollds with the youngest child c under 7, 7 on averag ge, work a total t of 70 hours h p week. Lone L parents work simiilarly long hours. h (men) aand 68 hours (women) per

150

Figure 77.12 Time sp pent on dom mestic and d family workload, by household type, 20133 (Hours onn average per week)

Figure 77.13 Time sp pent on proofessional activity a on housework k and carin ng for the fa amily, 20133

426. Twenty per cent c of the resident r poppulation, aroound 1.4 miillion peoplee, in Switzeerland

carry ouut at least onne honoraryy or voluntaary activity for an instittution or orgganisation. Figure F 7.14 reppresents thee involvemeent in formaal voluntary work in 2013. Men tennd to particiipate more thhan women (22.2% com mpared with h 17.9%). Fiinally, indivviduals spen nd on average almost one o and-a-h half workingg days per month m on thhese activitiees (women 12.0 hours,, men 14.5 hoours per monnth).

151

Figure 77.14 Involveement in foormal volun ntary work k, 2013

427. In n Switzerlan nd, 18.6% of o the resideent populatioon– or arouund 1.3 milliion people – are

involveed in inform mal unpaid household h seervice workk. Women arre more actiive than meen in this infoormal conteext: 23.2% of o women compared with 13.8% of o men (Figuure 7.15). Individuuals spend on o average almost two working daays per monnth on thesee activities (women ( 17.2 hoours, men 111.9 hours peer month, seee Table 7.110). Figure 77.15 Involveement in in nformal voluntary worrk, 2013

152

Table 77.10 Time sp pent on volluntary work, 2013 Time s pent on volu (Hours on n average peruntary week) work,, in 2013 On average hours per week Total

Total voluuntary work hrs

Foormal voluntary work w +/- h

hrs

Informal voluntarry work +/- h

hrs

+/- h

Volunteers 1) Total

4.1

0.2

3.3

0.2

3.88

0 0.2

Men

3.8

0.2

3.6

0.3

3.00

0 0.3

Women Total pop pulation 2) Total

4.4

0.2

3.0

0.2

4.33

0 0.3

1.3

0.1

0.6

0.0

0.77

0 0.0

Men

1.2

0.1

0.8

0.1

0.44

0 0.0

Women

1.5

0.1

0.5

0.0

1.00

0 0.1

1) People agged 15 y ears and ollder, w ho w ere activv ely inv olv ed in form mal and/or informal v oluntary w ork ov err the past 4 w eeks. 2) Permaneent resident population aged 15 and olderr, w hether they are inv olv ed in v oluntaryy w ork or not. h per w eek +/- h: 95% cconfidence limit, in hours © FSO, Neuuchâtel / Source: BF FS - Sw iss Labour Force F Surv ey (SLFS S): unpaid w ork moddule

428. In n 2013, the resident r poppulation of Switzerlandd aged 15 an nd above sppent 8.7 billlion

hours on domestic workload, care-related c d tasks and voluntary v w work (Figuree 7.16). In w 7.6 billlion hours of actual paaid work duuring the sam me period. comparrison, there were 429. A As shown in Table 7.11, domestic workload w reepresents a total t of 6.6 billion hourrs -

three-quuarters of th he total timee spent on unpaid u household servicce work. Loooking afterr childrenn or adults in i need of care added up u to a total of 1.5 billio on hours peer year (17% % of the total voolume). 665 million houurs were speent on volunntary work (7.6% of tootal volume)). Work done byy women acccounted forr 62% of thee total volum me overall. This percen ntage variess dependiing on the field f of activvity: it amou unts to 62% % for domesstic workloaad, approxim mately 62% forr care-relateed tasks andd 55% for voluntary v woork.

153

Figure 77.16 Volumee of unpaid d household d service work w of perm manent ressident popu ulation aged d 15 and oveer, 2013 (Millionss of hours)

Note: Avvailable from https://www.b h bfs.admin.ch/bbfs/en/home/statistics/workk-income/emplloyment-workkinghours/woorking-time/hoours-work/actuual-hours-worrked.html

Table 77.11 Distribution of un npaid houseehold serviice work off permanen nt populatioon aged 15 and over, 20013 (Millionss of hours) Women

Total

Mio. hrrs

+/- in %

+/+ Mio. hrs

Total

8 8720

1.2

101.6

Total domes tic and family w orkloadd

6 6565

1.2

78.5

Meal preparaation

1 1829

2.5

45.3

Washing-up, lay ing the table

750

1.5

11.5

Shopping

756

2.3

Cleaning, tidy ing

1 1115

Laundry , ironning

517

Home mainteenance, handicraft

Men

Mio. hrs

+/- in %

+ Mio. hrs +/-

Mio. hrs h

+/- in %

+/- Mio. hrs

1.5

79.6

3341

1.9

63.4

4 4094

1.5

61.8

2472

2.0

48.4

1233

1.9

22.9

597

2.4

14.0

456

1.9

8.8

294

2.5

7.4

17.2

445

2.9

13.0

311

3.7

11.4

2.2

24.6

799

2.7

21.2

316

4.0

12.6

3.6

18.5

415

4.1

17.0

102

7.1

7.2

437

5.7

24.8

148

8.3

12.4

289

7.5

21.5

Animals, plants, gardening

701

3.7

26.0

391

4.5

17.4

309

6.2

19.3

Administrativv e tasks

460

3.7

17.2

206

5.2

10.7

253

5.0

12.7 29.9

5 5379

1 1490

3.3

48.8

923

4.2

38.7

567

5.3

Feeding and bathing y oung childrenn

340

5.1

17.2

233

6.2

14.5

108

8.6

9.3

Play ing w ith children, helping w ith homew ork

980

3.6

35.8

588

4.8

28.1

392

5.7

22.3

Accompany ing i children, taking them m out

127

9.4

11.9

70

10.2

7.1

57

16.7

9.5

Prov ision of care and assistance too adults

42

31.7

13.4

32

40.2

12.8

10

38.6

4.0

Total v oluntaary w ork

665

4.4

29.2

363

5.9

21.5

302

6.6

19.9

Formal v olunntary w ork

317

6.2

19.6

119

9.4

11.2

198

8.2

16.3

Informal v oluuntary w ork

348

6.1

21.3

243

7.5

18.3

105

10.5

11.0

Total childcaare and asistance to adults

+/- : confidennce interv al 95% in % or o in million hours per y ear. © FSO, Neuuchâtel / Source: BFS - Sw iss Labour Force Surv S ey (SLFS): unpaidd w ork module Information: Labour L Force Section, 058 463 64 00, @ info.arbeit bfs.admin.ch

154

7.112.5Concllusions 430. There are maany advantaages to using g a module on the Laboour Force Survey S to meeasure

unpaid household service s worrk. They incclude:    

Since 199 97, the unpaaid househo old service work w modulle supplies Switzerlandd with good quaality informaation on dom mestic and family work kload as weell as on forrmal and informal voluntary w work. me spent in paid p work an nd unpaid household h seervice It providees a comparrison of tim work for the same inndividuals. 0,000 Relatively low budgget: estimateed survey-coosts at arounnd CHF 200 (approxim mately $2055,000) The moduule can be easily e repeaated each 3 or o 5 years.

431. H However, thee limitations are:



  



Only onee person is surveyed s peer householdd. This mean ns that whille the resultts provide some s insighht into the way w househoolds are mannaged (mainn responsibiility for houseworrk and childdcare), it dooes not tell us u how mucch unpaid hoousehold seervice work is done d by all the t memberrs of a houseehold togethher. Because in the CATI-interview we are worrking with predefined p tasks, t we arre limited inn differentiaations. For instance, i theere is no po ossibility to separate thee task “Care of animals or plants, garddening”. i n (e.g., who was the acttivity There is a lack of suubjective or contextual information carried ouut with, or for f whom). There is an a issue of recall r – indiividuals maay not remem mber their unpaid u houssehold service work w activitiies on the reeference dayy. Furtherm more, the results rely onn people correctly distinguishhing the cateegory of unppaid househhold servicee work. For p withh children as a either chilldcare or leiisure. instance, some mighht describe playing s us activities. Lack of information regarding simultaneou

155

7.13 Connecting a h househo old sate ellite acccount to o a healtth s satellite accoun nt ‐ Mexiico 42 432. A According too the 2008 SNA, S theree are two tyypes of satelllite accounnts, and at leeast four

areas (toourism, envvironment, health h and unpaid u houssehold serviice work acttivities) thatt can be extendeed dependinng on the needs of each h country or sector throuugh others specific s issuues such as agriccultural com mmodity outtput (e.g., co offee), NPI,, pension manager, m watter, forest, etc. e The common feature off the satellitte accounts is that they consider th he SNA as a starting pooint. s whicch presents aan extensionn of the system (extendd of the This stuudy examinees the key sector, producttion boundaary), allowinng elementss that are invvisible in th he central syystem. 433. This satellitee scheme is useful for economic e annalysis, allowing determ mination off

specificc activities that t play a key k role in the t economiic transactio ons besides their use foor econom mic analysis and particuularly as suppport for thee design of economic e and a social poolicy. The facct that they are a satellite accounts do oes not meaan that theirr treatment should s be equal or uniform m. In principple, the onlyy common feature f they have is its dependencee on SNA. The T consisteency43 amonng the different satellite accounts is i not ensurred by the ceentral system, even they aree consistent with SNA. 434. The experien nce has taugght us that itt is not posssible to use widely w the same procedures

for eachh satellite acccount, nor use the sam me structuree or classifieers. The exteent of produuction boundarry for severral key sectoors is also applied a diffeerently. Som me limits aree similar to the central system's on nes, but otheers go beyonnd the bounndary, and are a more related to issuues such urement of economic e acctivity44. as sociaal wellbeingg rather thann the measu 435. The experien nce in buildiing satellitee accounts allows a to deffine key claassification patterns

that help to incorpoorate the eleements, whiich are the measuremen m nt object insside the bouundary, t classifyy the remainning elemennts outside the t boundarry. The while att the same time measureement objecct of tourism m satellite account a is foor example the consum mption, whicch occurs ooutside the usual enviroonment. Thhe measurem ment object of a culturee satellite acccount is the ecconomic acttivities derived from cu ultural practtices. For exxample, sin nging with reelatives or friennds is not co onsidered; whereas w sing ging in a theeatre, wheree economic flows occurr is measureed in this saatellite accoount. 436. The ranking of the inforrmation disttinguish betw ween conneected activitties, main and a

supportt activities, specialized s or not speccialized prodducers, etc. These key classificatio c on patternss match som me criteria such as the third t party. This allowss showing iff an activityy is producttive, depend ding on its capability c to o transfer itss service to a different person thann the one whoo have prodduced it. Forr example, ironing i clotthes, which is unpaid household h seervice work, cconstitutes a productivee activity, thhat increasess the wellbeeing of anotther person. On the other haand, brushin ng or makinng sport exeercises increeases the weellbeing only of the perrson who perrformed succh activitiess. 437. The developm ment of keyy classificatiion patternss or criteria should folloow the principles

of consiistency, com mpleteness, comparabillity and cohherence, whhich are usefful in processes or

42

See SN NA 2008, paraagraph 29.86 to t 29.87. “Manyy satellite accoounts are possible but, thouggh each is connsistent with th he central system, they mayy not always be consistent with w each other. (SNA 2008, 29.4)” 44 See SN NA 2008, paraagraph 1.84. 43

156

activitiees that appeear in severaal satellite accounts. a Beecause of inncompleteneess, for exam mple, an activityy can appearr in two or more m satellitte accounts. 438. D Developing schemas s andd roadmapss describingg each proceess ensures homogeneit h ty of the

quantitaative processses associaated with thee construction of satelliite accountss. It helps too identifyy similar waays from varrious accouunts in usingg resources, methodological and sttatistical tools, quuality contrrol models (e.g., ( Generric Statisticaal Business Process Moodel), risk matrix, m etc. 439. B Based on thee analysis off these simillar ways am mong unpaidd householdd service woork of

househoolds satellite account, health h satelllite account and NPI’ satellite s acco ount, the folllowing points w were derivedd:       

Repeating g work wass avoided, particularly when w it refeers to the saame issue adddressed by two saatellite accoounts with apparently a d different pro ofiles. Cross-cuttting issues from satelllite accountss, such as GDP, G employment, voluunteer labour, orr replacemeent cost valuuation or eqquivalent funnction can be b addressed at the same tim me. Boundariies betweenn each satelllite account were set annd recognizeed. Confiden nce in the geenerated ressults and connsistency off informatioon between the accounts was ensureed. It showeed same resuult from the same variaable, althouggh it m a differennt sector. came from The not-aadditive rulee of satellitee accounts was w used. Synergies between different d woork teams heelped to gain further knnowledge annd exchanging of ideas.. p to annother. Good praactices weree transferredd from one project

440. Fiigure 7.17 shows the linkage l betw ween the unnpaid househhold servicee work of

househoold satellitee account annd health and NPI’s satellite accouunts. Links to t other sateellite accountts will gradu ually be ideentified in developing oother accoun nts. One might expect, for example, a linkagee to the cultuure satellite account, inn particular about volun nteer labourr on s as civicc, patriotic and a religiouus festivals, or film, dan nce and theeatre culturall activities such festivals managem ment. Environmental acccounting, meanwhile, m a have too measure unnpaid also c thee streets and d trash colleection, househoold service work on refforestation, recycling, cleaning care of beaches, etcc. Its linkagge with houssing satellite account liies on activiities such ass wn production. housingg extension and improvvement, ownn constructiion, supervising and ow Almost all of thesee activities have h househhold particippation, eitheer through work w providded by y other houuseholds (clo ose relatives or volunteeer labour). Regarding the the houusehold or by tourism m satellite acccount, linkaages are ideentified from m participattion in volun nteer labourr in activitiees such as toour guide, care c of beacches, care off protected natural n areaas, protectioon of archaeoological sitees and so onn. 441. This allows analysing a thhe measurem ment processses in the central c SNA A, e.g., contrributing

to the valuation v of unpaid houusehold worrk in housinng. This kindd of activitiees is valuedd for their im mputed costss by the cenntral system where laboour cost is addded to the cost of usedd materiaals.

157

Figure 77.17 Examp ple of the lin nkage betw ween unpaid d household d service work w and otther satellitte accoun nts

442. Fiigure 7.17 shows s interssecting elem ments such as a help to other househholds in heaalth care,

volunteeer labour inn health caree through an n organizatiion, and vollunteer work k in differennt areas (environnment, deveelopment, w welfare, etceetera), whicch appears inn recurring and organizzed mannerr. 443. The practice of linking processes p beetween diffferent satelliite accountss allows

extrapoolating not only o experieence but alsoo the measuurement schhemas for paarticular varriables, as identtified in the previous paaragraph. For example, for the varrious satellite accounts work is needed to identify the unpaid household h service s worrk hours on health care from TUS, or to d volunteer work, and the t work peerformed dirrectly by hoousehold, ussing the align thhe organized employyment and NPI’s N surveyys. 444. The figure hiighlights in particular the t issue of economic valuation v off volunteer labour. l

In the thhree satellitte accounts, labour is caalculated byy the methood of replaceement cost (hybrid ( methodd), using thee average coompensationn of employyees from th he central syystem (althoough alternattively they could c be callculated by using colleccted wages from emplo oyment survveys). For otheer satellite accounts, a w which are noot mentionedd in the figuure, such as tourism andd culture,, volunteer labour l appeears as a crooss-cutting issue. 445. The experien nce in buildiing satellitee accounts contributes c t the identiification of to

common practices and could sserve to estaablish the fiirst steps tow wards the developmentt of a specificc satellite acccounts’ hanndbook. Succh practicess should be always pressented as ann extensioon of the ceentral SNA. 158

Chap pter 8

Curre ent and d Future e Resea arch Arreas

8.1 Simultan S neous acctivitiess 8.11.1 Whatt are simu ultaneou us activitiies? 446. A An activity may m be the only o one thaat is carriedd out over a particular in nterval of tiime,

that is to say a singgle activity. Or, as is soometimes thhe case, an activity a mayy be carried out in me, the wholle set being referred parallell with one or more otheer activities over an inteerval of tim to as sim multaneous activities. Simultaneou S us activitiess complicatee the valuattion of own--use producttion work off services, because, b deppending on the specificc activities and a the valuuation approacch used, it may m be neceessary to dettermine how w much tim me was devoted to each activity (UN, 20005). 447. H How we defiine and recoord multitasking influennces concluusions aboutt its prevaleence and

importaance. Differrent perceptiions of whaat is multitassking may lead l to diffeerences in itts recordinng, particulaarly if guidaance on how w and what to record iss not providded. This maay call into queestion the exxtent to whiich we can compare intter-participaant time-usee diaries. 448. Siimultaneous activities are differen nt from conssecutive acttivities, which may occcur in

the sam me block of time, t but whhich clearlyy occur at diistinct timess. Ideally, all sequentiaal activitiees should bee recorded aas primary, taking the time t to repoort the starting and stoppping times annd only truee simultaneoous activitiees would bee reported ass secondaryy (or ignoredd if secondaary activitiees are not coollected). 449. H However, resspondents may m find it convenient c t report certain short-duration acttivities to

as seconndary, evenn though theey were reallly the primaary activity. For exampple, if a resppondent interruppts their ironning to answ wer the phonne, these acctivities should be recorrded as ironning, talking on the phon ne, and ironning. Yet, thhe respondennt might repport the singgle activity of t phone as a secondaary activity. ironing and report talking on the 450. Thus, second dary-activityy reports no ot only incluude true sim multaneous activities a buut

almost certainly c alsso short-durration sequeential activiities that resspondents did d not reporrt separateely. If the acctivities aree sequential,, we will haave overestim mated the tootal time sppent on any prinncipal functtion, as we have h allocatted a full 100 or 15 minuutes to both h the primarry and secondaary activitiees.

8.11.2 Why is multitasking im mportantt? 451. M Multitaskingg is considerred importannt due to the fact that:





Multitaskking is highly prevalentt. People paarticipate inn more than one activityy concurrenntly for appproximately one third of o the day (F Floro and Miles, M 2003),, meaning that multitaasking can “add” “ up to seven hourrs to the aveerage wakinng day (Kenyon,, 2010). Multitaskking is partiicularly prev valent in specific typess of activitiees. For instaance, childcaree activities aare often perrformed in pparallel witth other activities like houseworrk but respoondents willl often repoort the care-ggiving activvity as a seccondary

159





activity. Thus, T muchh of the timee spent in chhildcare maay not appeaar in survey estimatess if only prim mary activitties are covvered. Accountiing for multtitasking has implicatioons for the understandin u ng of well-bbeing and inequuality in socciety. Evideence suggestts that multitasking is differentiall d ly distributeed across annd is linked to demograaphic factors including age, culturee, education nal attainmeent, employ yment statuss, gender, prresence of children c andd income (F Floro and Miles, M 2003)). Women, ffor instancee, tend to doo multitask more m than menn. Multitaskking has serrious conseqquences on people’s p weell-being an nd quality off life. Tendencyy to multitask can implly potential benefits in terms of inccreased productivvity, but it can c also reprresent the inntensificatioon of work and the lackk of discretionnary or ‘purre’ leisure tiime (as in thhe case of overlap o betw ween work and a leisure acctivities).

8.11.3 How are simu ultaneouss activitie es treated in time e‐use surrveys? 452. W While most time t diaries (as the onees used to crreate the HE ETUS databbase) ask

responddents to repo ort both their primary activity a as well w as anythhing else thhey were doing simultanneously witth the primaary activity,, some time-use diary surveys s recoord only thee main activitiees that peopple perform and disregaard the secondary (or teertiary) activvities that happen h in the m meanwhile. Other O surveeys only colllect inform mation on cerrtain second dary activitiies, such as childdcare, and evven then, soometimes th hrough speccial supplem ments to reguular time-usse surveyss. 453. W When simulttaneous actiivities are reecorded, it iis necessary y to prioritisse these as main, m

secondaary, etc. Desspite effortss to harmonnise differennt surveys, important diifferences inn the specificcation of priimary and secondary acctivities rem main. Table 8.1 presentts six differeent ways off recording multitaskinng within fivve time-use diaries, sugggesting thaat these survveys mean diifferent thin ngs by “mulltitasking“.

160

Table 88.1 Differeent ways of recording multitaskin ng

Source: K Kenyon (20100)

8.11.4 Measuring tim me spent in simulltaneous activities 454. A first approach for meaasuring timee spent in siimultaneouss activities is i to count only o the

time speent in the prrimary activvity, while the t sum of secondary s activities a maay be counted and tabulateed separatelly. This is thhe most com mmonly useed approach in time-usee surveys, usually u becausee it simplifiees estimatioon and tabullation. As discussed d ab bove, howevver, counting only primaryy activities in i producingg statistics of o daily totaals of time-u use means omitting o maany meaningful activitiies that are ooften reportted as seconndary activities. 455. A second meethod is to allocate a the same amouunt of time to the activitties perform med

simultanneously. Foor example, simultaneoously cookinng and watcching the tellevision for an hour would be b measuredd as an hourr of cooking g and an houur of watching the telev vision. Thiss methodd, although easily e impleementable, does d not sattisfy the connstraint thatt a day has 24 2 hours. T The methodd also presum mes that thee “output” of o an activityy performedd jointly is the t same ass when the activity a is performed soolely. This feature f is paarticularly troublesome t e when the dataa are used inn valuation of housewoork. 456. A third appro oach allocattes time speent on simulltaneous acttivities on thhe basis of the t

proportion of the tiime that a group g spendds on primarry activities. This methhod computees the mount of tim me a populattion group spend s on a given g activiity, on averaage, and asssigns an total am hour off time spent by an indivvidual simulltaneously performing p the activity on the basiis for ours a weekk talking the propportion of thhe group tottals. For exaample, if teenage girls spend 10 ho on the pphone (as a primary acttivity) and 20 2 hours a week w watchhing televisio on (also as a primaryy activity), giving g a ratiio of 1:2, thhen 9 hours jointly j spen nt talking on n the telephone 161

while w watching teleevision wouuld be allocated as 3 hoours on the phone p and 6 hours wattching televisioon. The advvantage of thhis approacch is that thee constraint that a day has h 24 hourrs is satisfiedd; however also this appproach assuumes the “ooutput” of ann activity peerformed joointly is the sam me as when the t activity is performeed solely (U UN, 2005); moreover m it gives the impresssion that lesss time is beeing spent on an activityy than in acctuality. 457. The examplee below, bassed on the 2008-09 2 Itallian time-use data, exem mplifies thee

relevance of simulttaneous actiivities and the t related measuremen m nt challengees. Table 8.22 dary (by colu umns) activvities reports the averagee time spentt on primaryy (by rows) and second O the main diagonal (hhighlighted in i relevantt for own-uuse productioon work of services. On yellow)) are the minnutes of thee main activvities exclusively. Table 88.2 Examp ple matrix time-use t acctivity for primary p and d secondarry own-use production n of service work activvities, Italyy, 2008 and 2009 (Minutees per day) 147 T U S ca te gorie s

0

0 CARE OF HIS PE ERSON 01 STAY, TO BED SICK S 02 EAT, DRINK 03 OTHER CARE OF O HIS PERSON 1 WORK EXPERIENCE 11 HOME WORK 12 SECOND JOB ED TO WORK 13 OTHER TIME TIE 2 EDUCATION, STU UDY 21 SCHOOL, UNIVE ERSITY COURSES SPECIF FIED 3 CARE OF YOUR HOUSE AND SHING AND 31 COOKING, WAS STORING THE DIS SHES 32 CLEANING AND D REORGANIZATION N OF THE 33 WASH, IRON AN ND WORKING OF ITEMS OF CLO OTHING 34 GARDENING AN ND CARE OF 35 CONSTRUCTIO ON AND 36 PURCHASE OF F GOODS AND 37 MANAGEMENT OF THE DREN / BOYS 38 CARE OF CHILD FAMILY OLUNTEER, 4 ACTIVITIES OF VO AID FREE TO OTHER FAMILIES, ATION AND SOCIAL PARTICIPA 41 ACTIVITIES OF VOLUNTEER V 42 AID DATA FOR FREE F TO FAMILIES OF OTHE ER PEOPLE 43 PARTICIPATION N IN SOCIAL 5 SOCIAL LIFE, LEIISURE AND CULTURAL ACTIVIT TIES 51 SOCIAL LIFE C 52 LEISURE AND CULTURAL 6 SPORT AND OUT TDOOR 61 EXERCISE NG, 62 HUNTING, FISHIN COLLECTION OF MUSHROOMS, M 63 OTHER ACTIVIT TIES RELATED TO SPORTS AND OUTDOOR O 7 ARTS, RECREAT TION AND 71 ARTS 72 RECREATION 73 GAMES MMUNICATION 8 MEDIA AND COM 81 READINGS 82 TELEVISION AND VIDEO 83 RADIO, MUSIC ON 84 COMMUNICATIO 90 JOURNEYS ACC CORDING TO 900 Movements for self-care 901 Navigating on business 902 Movements for education, study 903 Movements for the care of their me, the goods family and their hom and services, house ehold 904 Movements rela ated to voluntary activities, aid to othe er families, social 905 Movements rela ated to social life, entertainment and cultural c activities 906 Movements rela ated to sports and other outdoor acctivities 907 Movements rela ated to their 908 shifts associate ed with changing the location, for leisu ure 909 children shifts with w someone, without specifying th he reasons for 99 TIME Unspecified d T ota le

01

02 03 1

11

12 13 2 21 22 3 31 32 33

34

35 36 37 38 8

39

4 41 42 43 5

51

0 0 1 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 24 4 0 0 0 0 0 0 0

0

0

0 0

0

0

0 0

0

1

0 0

0

0

0 0

0

0

1

0 0

0

0

0

0

0

0 0

0

0

0

0

0

0

0 0

0

3

0

0

0

0 0

0

0 24

0

0

0 0

0

0

1

0

0 0

0

0

0

0 13 3

0

0

0

0

0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0

0

0

0

0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 1 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0

0

0

0

0

0 0

0

0

0

0

0

0 0

0

0

0

0 0 0 0

0 0

0 0 0 0

0 0

0 0

0

0 0

0

0 0

0

0

0 0 1

0 0 0 0 0 0 5 0 13

0 0 0 0 0 0 0 522 0 0 0 0 0 0 57 0 0 0 0 0 0 82 0 0 0 0 0 0 0 0 0 0 0 0 0 106 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 1 0 0 0 0

0 0 3 0 0 0 0 2 0 0 0

0

0

0

0 0

0

0

0 0

0

0

0

0 0

0

0

0 0

0

0

0

0 0

0

0

0

0

0

0 0

0

0

0

0

0

0 0

0

0

0

0

0 0

0

0

0

0

0 0

0

0

0

0 0

0

0

0

0

0

0

0 0

0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12 0 0

0 0 0 0 0 0 0 0 0 0 1

52 6 61 62 63 7 71 72 73 8 81 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 2 0 0 0 0 0 0 0

0

0 0

0

0

0 0

0

0

0 0

4

0 0

0

0

0 0

0

0

0 0

0 0

2

0 0

0

0

0 0

0

0

0 0

1

0 0

0

0

0 0

0

0

0

0 0

1

0 0

0

0

0 0

0

0

0 0

0

0 0

0

0

0 0

0

0

0

0 0

4

0 0

0

0

0 0

0

0

0 0

0

0 0

0

0

0 0

0 0

0

0

0 0

1

0 0

0

0

2 0

0

0

0 0

0

0 0

0

0

0 0

0 0 0 0

0 1

0 0

0 0 0 0

0 0

0 0 0 0

0 0

0 0

0 0

0 0 0 0

0 0

7 0 0 0 10 0

2 0

0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 52 1 0 8

0

0

0

0 0

0

0

0 0

0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 1 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 3 0 1 10 0 0 0 1 1 0

0

0

0

0

0 0

0

0

0 0

0

0

0

0

0 0

0

0

0 0

0

0

0

0

0

0 0

0

0

0 0

0 0

0 0

0 0

0 0

0 0

0 0 0 0

0 0

0

0

0

0

0

0

0 0

0 0 0 0 1 19 9

0 0 0 0 2 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0

0 1

0

0

0

0

0

0

0

0 0 38

0

0

0

0

0

0 0

0

0 0

0 34

0

0

0

0 0

0

0 0

0

0 11

0

0

0

0 0

0

0 0

0

0

0

17

0

0 0

0

0 0

0

0

0

0

0

0

0 0

0

0 0

0

0

0

0

0

0

0 0

0

0 0

0

0

0

0

0 0

0

0

0 0

0

0 0

0

0

0

0 0

0

0

0 0

0

0 0

0

0

0

0 0

0 0 0 0

0 0

0 0

0 0 0 0

0 0

0 0 0 0

0 0

0 0

0 0

0 0

0 0 0 0

0 0

0 0

0 0 0 0

0 0

0 0 0 0

0 0

0 0 0 0 0

0 1 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0

0

0

0 0

0

0

0 0

0

0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 1 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0

0

0

0 0

0

0

0 0

0

0

0

0

0 0

0

0

0 0

0

0

0

0

0 0

0

0

0 0

0 0

0 0

0 0

0 0 0 0

0 0

0 0

0

0

0

0 0

0

0 0 0 0 0 0 0 0 0 0 0 0 0 523 59 84 0 106

0 0 0 0 0 0 0 0 0 0 1 1 39 35 12

0 0 0 0 0 0 17 3 24 153,7

0 0 5 0 0

82

83 84 90 900 901 9 02 903 904 905 906 907 90 8 909 99 T ota le

0 0 33 9 0 0 0 0 0 0 0

0 0 2 4 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 523 121 102 0 106 1 2 0 13 1

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

0

15

4

0

0

0

0

0

0

0

0

0

0

0

0

0

64

0 0

0

5

7

0

0

0

0

0

0

0

0

0

0

0

0

0

50

0 0

0

4

2

0

0

0

0

0

0

0

0

0

0

0

0

0

17 203,6

0

0 0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

19

0

0 0

0

0

1

0

0

0

0

0

0

0

0

0

0

0

0

0

4

0

0

0 0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

29

0

0

0 0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

0 0

0

0

0 0

0

1

0

0

0

0

0

0

0

0

0

0

0

0

0

0

16

0 0

0

0

0 0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

3

0 0

0 0 0 0

0 0

0 0

0 0 0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 2

0 0

0 0

0 0 0 0

0 0

0 0

0 0 0 0

0 0

1 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

10 11

0 0 0 0 0 0 0 0 0 27

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 1 0 0 0

0 0 0 0 0

0 0 0 0 0

0 3 0 0 0

0 1 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 60 6 0 36

0 0

0 0

0

2

0 0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

2

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 1 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 0 11 0 0 0 0 0 0 0 0 0 17 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 1 0 1 97 0 0 0 0 0 0

0 0 0 0 0 0 1 0 3 0 0 1 2 0

0 0 0 0 0 0 0 0 0 1 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 6 0 0

0 0 0 0 0 0 0 0 0 0 0 0 11 0

0 0 0 0 0 0 0 0 0 0 0 0 0 1

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 1 3 15 0 20 112 3 2 0 8 14 2

2

0 0

0

0

0 0

0

0

0 0

0

0

1

0

0

0

0

0

16

0

0

0

0

0

0

0

20

1

0 0

0

0

0 0

0

0

0 0

0

0

0

0

0

0

0

0

0

6

0

0

0

0

0

0

7

0 0

3

0 0

0

0

0 0

0

0

0 0

0

0

2

0

0

0

0

0

0

0

14

0

0

0

0

0

19

0 0

0 0 0 0

1 0

0 0 0 0

0 0

0 0

0 0 0 0

0 0

0 0

0 0 0 0

0 0

0 0

1 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

4 0

0 1

0 0

0 0

0 0

5 2

0

0

0 0

1

0 0

0

0

0 0

0

0

0 0

0

0

1

0

0

0

0

0

0

0

0

0

0

4

0

0

6

0 0 1

0 0 0 0 0 0 0 0 8 10 0 130

0 0 0 0 0 0 5 0 28

0 0 2

0 0 0 0 0 0

0 0 1

0 0 0 0 0 0 0 0 0 0 0 0 2 13 0 21 171 36

0 0 1

0 0 0

0 0 6

0 0 11

0 0 1

0 0 16

0 0 6

0 0 14

0 0 4

0 0 1

0 0 4

0 0 0

0 2 2

0 2 1440 1229,3

458. Table 8.2 hig ghlights thatt the time sp pent on secoondary activ vities adds up u to 4 hourrs a

day. Thhis is importtant to undeerstand whatt may be thee impact off multitaskinng. In particcular:  

For codess 31 - 39 thee total of thhe diagonal oof the yello ow cube equuals 143.4 minutes m (see the numbers n in red). r The numbber of minuutes in the whole w yellow w cube equaals 147 minnutes. For exxample, for those who are dooing “cookin ng, washingg and storing g the dishess” as a prim mary 162





activity, they t are speending 0.9 minutes m takiing “care off children / boys b of his family code 38)””. If we look at the row w totals of thhe activitiess 3.1-3.8 wee have that out o of a totaal of 203.6 min nutes aboutt 56 minutess are spent in i secondary y activities defined as “social “ life” (14.1 minutes see s the numb mbers in greeen) and “teleevision andd video” (25.4 s the num mbers in greeen). In practtice, out of a total of 2003.6 minutees spent minutes see in househhold producctive activitiies there aree 56 minutes of second dary activitiees spent in free tim me and sociial life. The question iss then whethher to considder these minutes m as producctive for esttimating thee value of ow wn-use prod duction worrk of servicees. The samee is true if we w look at thhe column totals t of activities 3.1-3 3.8. Out of 153.7 minutes 6 are spent in i free timee and personnal care as secondary s acctivities (seee the numbers in green). i.e., 2 minuttes spent waatching TV, almost 1 minute m in soccial life nd drinking, almost 1 minute m for peersonal caree, etc. activities, 1.6 minutees eating an he question is, should th his be included as own n-use producction work of o Again, th services time? t

8.11.5 Valuiing time sspent in ssimultan neous acttivities 459. A Assuming that an agreem ment was foound on the way overlaapping activvities are repported

and meaasured, a nuumber of isssues relatedd to their valluation remain, which makes m it diffficult to incorrporate simuultaneous acctivities in valuing v ownn-use produ uction work of services. 460. To illustrate, assume a respondent r s spent one hoour cookingg (primary activity) a andd

lookingg after childrren (seconddary activityy) at the sam me time. If thhe generalisst-wage appproach is used then valuation is straigghtforward, with the enntire hour beeing valued at the geneeralist u then one o must determine how w to value that t wage. If the speciaalist-wage appproach is used, hour off time: valuee the entire hhour at the professionaal cook wagge, value thee entire hourr at the w or valuue part of th he hour at thhe housekeeeper wage and a part at the t childcarre worker wage, childcarre worker wage. w If the latter valuaation is usedd, one must determine how h to appoortion time to the two acttivities (see previous seection). Thee treatment of o simultaneeous activities is g w wage is used d, although both b valuatiion approacches requiree much siimpler if a generalist disentanngling the activities a whhen one of the t simultanneous activiities is not household h w work. 461. Table 8.3 preesents estim mates of the time spent in i nonmarkket productio on, broken down d

by activvity, plus fo our estimates of the totaal value of this t producttion in the U.S. U in 20033 based on ATU US data. Fraazis and Stewart (2004)) apply the generalist g wage w and thee specialist wage to two alteernative deffinitions of household h work. w The first f definitioon includess household activitiees and care of householld memberss done as a primary p acttivity. The second s definnition is 45 broaderr, as it also includes i chiildcare as a secondary activity. The T authors exclude seccondary childcarre that was done at tim mes when thee respondennt was engagged in nonm market workk as a primaryy activity. The T specialisst wages weere generateed using thee Outgoing Rotation R Grroup files forr 2003 from m the CPS. The T hours-w weighted aveerage wage for each 3--digit occuppation was com mputed andd the time sppent in each nonmarkett activity waas valued att the wage for f the occupattion that mo ost closely resembles r th he activity. For the genneralist wagee, the hourssweighteed average wage w for hoouse cleanerrs and houseekeepers waas used. Usiing the speccialist 45

The Am merican Timee Use Survey (ATUS) ( does not collect infformation on secondary acttivities. It doess, however,, include a sett of questions asking respon ndents to identtify times wheen a child und der 13 was “in your care.” Thhe goal of thesse questions iss to measure thhe amount of time that resp pondents spend d looking afteer children w while doing something elsee.

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wage raather than thhe generalisst wage addss between 6 and 9 perccent to the value v of nonnmarket work, aalthough theere is some variation v accross activities. Differences in the valuations of o individuual componnents are as expected. Table 88.3 Alternaative valuattions of ow wn-use prod duction worrk of servicces, ATUS, 2003

Source: F Frazis and Steewart (2004).

8.11.6 Concllusion 462. In nclusion of simultaneouus activitiess in the valuuation of ow wn-use produuction workk of

servicess requires im mportant deecisions on how h to meaasure time sppent in thesse activities.. Currentt knowledgee on this issue is not suufficient for the formulaation of cleaar-cut recomm mendations and a further work is req quired.

8.2 Voluntee V er work k th

463. The forms off work fram mework from m the 19 IC CLS was disscussed in Chapters C 2 and a 3 of

this report. It was noted n that tw wo of the fo orms of worrk within thee frameworrk could be paid househoold service work’, nam mely own use provision of servicess and consideered as ‘unp volunteeer work. In common with w own-use production work of services s (thee main referrence point foor the materrial in this guide), g statisstics on partticipation annd valuationn of volunteeer work are relaatively scarcce. 164

464. Those seekin ng explicit guidance g onn the measurrement and valuation of o volunteer work

can refeer to existinng guidance material. In n 2011 the ILO I publishhed a Manuaal on the 46 Measurrement of Volunteer V W Work, which includes ddefinitions, and recomm mended measureement approoaches for volunteer v work. w Also within w the manual m theree is a brief discussiion on valuaation approaches. The consideratioons in chooosing a meassurement annd valuatioon approachh are very siimilar to thoose discusseed in this guuide. Howevver, if a replacem ment cost appproach is adopted a to value v volunnteer work itt is worthwh hile to conssider which ooccupationaal groups wiill be used to calculate the ‘shadow w’ wage andd this may differ d from thhe group useed in the casse of own use provisionn of services. 465. A point of no ote in using the 2011 IL LO Manual is that, as it was writteen before thhe

standardds from the 19th ICLS were w adopteed, it applieed a differennt definitionn of volunteer work. T The key diffference relattes to the sccope of activvities considdered to be volunteer work. w Specificcally the 20 011 ILO Maanual defineed volunteerr work as “U Unpaid non--compulsory work; that is, time t individduals give without w pay to activities performed d either thro ough an organizzation or dirrectly for othhers outsidee their own household””. Within the forms of work w framew work adoptedd at the 19thh ICLS the scope s was narrowed n so o that voluntteer work iss now definedd as unpaid, non-compuulsory workk done for thhe people ou utside the hoousehold orr family. The imppact of this relates to work w done fo or the beneffit of family y members living l in othher househoolds, previoously this was considereed volunteeer work but under the laatest standaards it is consideered part of own-use prroduction work of serviices along with w unpaid activities done d for househoold memberrs. 466. In n addition too the ILO Manual M the forthcoming f g update of the UN Hanndbook on NonN

Profit Innstitutions in i the Systeem of Nation nal Accountts47 will also discuss appproaches too valuatioon of voluntteer work.

467. A Any country wishing to include vollunteer workk within theeir measurement and vaaluation

approacch should reefer to the avvailable guiidance. In addition a it iss critical thaat the forms of work inncluded in any a estimatees of value should s be exxplicit and that t if volun nteer work is i included it should be b distinguiished in thee measuremeent and valuuation proceess from ow wn use i line with the standarrds from provisioon of servicces. This willl ensure thaat the measuurement is in the 19thh ICLS and aid a in the trransparency y, comparability and coherence of the t estimatees produceed. 468. W While, as alrready stated, the guidan nce in this manual m will have some relevance to t

measureement and valuation v off volunteer work w it wouuld be worthhwhile to deevelop expllicit guidancce adapted specifically s to those acttivities to iddentify and promote goood practicees and relevantt concepts. The Task Force F recom mmends this as an area of o work worthy of consideeration for follow fo up acctivities.

46

Manuaal on the meassurement of voolunteer work, ILO, 2011: http://www.ilo h o.ch/wcmsp5/groups/publicc/--dgreportss/---dcomm/----publ/documeents/publicatioon/wcms_1677639.pdf 47 At the time of writinng the updatedd handbook was proceedingg through a consultation pro ocess. The draaft which was made available forr consultationn can be foundd at: http://unsstats.un.org/un nsd/publicatioon/seriesf/serieesf_91e.pdf

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Glossary Compensation of employees: The total remuneration, in cash or in kind, payable by an enterprise to an employee in return for work done by the latter during the accounting period. (SNA 2008, 7.5) Consumption of fixed capital: The decline, during the course of the accounting period, in the current value of the stock of fixed assets owned and used by a producer as a result of physical deterioration, normal obsolescence or normal accidental damage. (SNA 2008, 10.25) Household final consumption expenditure: The expenditure, including expenditure whose value must be estimated indirectly, incurred by resident households on individual consumption goods and services, including those sold at prices that are not economically significant and including consumption goods and services acquired abroad. (SNA 2008, 9.113) Household: A group of persons who share the same living accommodation, who pool some, or all, of their income and wealth and who consume certain types of goods and services collectively, mainly housing and food. (SNA 2008, 4.4) Imputed compensation for labour input to own-use production work of services: The value of labour input to own-use production work of services. There are many approaches to valuing the labour input to own-use production work of services, including the opportunity cost, and replacement cost methods. Intermediate consumption: The value of the goods and services consumed as inputs by a process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital. (SNA 2008, 6.213) Labour input to own-use production work of services: Time spent by household members on the production of own-use production work of services. Market output: Consists of output intended for sale at economically significant prices. (SNA 2008, 6.99) Market prices: Amounts of money that willing buyers pay to acquire something from willing sellers; the exchanges are made between independent parties and on the basis of commercial considerations only, sometimes called “at arm’s length.” Thus, according to this strict definition, a market Price refers only to the price for one specific exchange under the stated conditions. (SNA 2008, 3.119) Non-market output: Consists of goods and individual or collective services produced by non-profit institutions serving households (NPISHs) or government that are supplied free, or at prices that are not economically significant, to other institutional units or the community as a whole. (SNA 2008, 6.128) Opportunity cost: For purposes of the satellite account, it refers to the cost of the activity that is being forgone when households engage in own-use production work of services. In this case, it is the monetary value that people refuse to earn for a paid work in order to spend the same amount of time on the own-use production work of domestic and care services. Output for own final use: Products retained by the producer for his own use as final consumption or capital formation. (SNA 2008, 6.114) Own-use production work of services: The production of services by households for their own-use without a monetary transaction. Examples of own-use production work of services include the caring of adults and children within the same household, preparation of meals, and cleaning clothes. Households produce these services via a combination of labour inputs, 166

with durable and non-durable consumption goods. It covers activities where the services produced are consumed by household members, or by family members living in other households. Production boundary: The production boundary of the SNA includes the following activities (a) The production of all goods or services that are supplied to units other than their producers, or intended to be so supplied, including the production of goods or services used up in the process of producing such goods or services. (b) The own-account production of all goods that are retained by their producers for their own final consumption or gross capital formation. (c) The own-account production of knowledge-capturing products that are retained by their producers for their own final consumption or gross capital formation but excluding (by convention) such products produced by households for their own use. (d) The ownaccount production of housing services by owner occupiers. (e) The production of domestic and personal services by employing paid domestic staff. (SNA 2008, 6.27) Production measure of GDP: The production measure of gross domestic product (GDP) is derived as the value of output less intermediate consumption plus any taxes less subsidies on products not already included in the value of output. (SNA 2008, 16.47) Productive activity: Based on the criterion of the third person (presented by Margaret Reid), it is considered that an activity is productive if it can be delegated to someone else, and if it can provide a good or service that can be exchanged. Replacement cost: Monetary amount needed to acquire a similar service in the market that people have at home. In this context, it is the monetary value that is required to hire the workforce needed for doing the domestic and caregiving services at home. Services: Are the result of a production activity that changes the conditions of the consuming units, or facilitates the exchange of products or financial assets. Change-effecting services are not separate entities over which ownership rights can be established. They cannot be traded separately from their production. By the time their production is completed, they must have been provided to the consumers. (SNA 2008, 6.17) Unpaid household service work: The production of services produced by household members, and consumed either by households themselves or by other households without a market transaction. There are two main elements of unpaid household service work - own-use production work of services, and volunteer work. Value added: Gross value added is the difference between output and intermediate consumption. GDP is the sum of gross value added of all resident producer units plus that part (possibly the total) of taxes on products, less subsidies on products, that is not included in the valuation of output. (SNA 2008, 2.138) Volunteer work: Unpaid non-compulsory work; that is, time individuals give without pay to activities performed either through an organization or directly for others outside their own household.48 (ILO, 3.5). Wages and salaries: Include the values of any social contributions, income taxes, etc., payable by the employee even if they are actually withheld by the employer for administrative convenience or other reasons and paid directly to social insurance schemes, tax authorities, etc., on behalf of the employee. Wages and salaries may be paid in various ways, including goods or services provided to employees as remuneration in kind instead of, or in addition to, remuneration in cash. (SNA 2008, 7.43)

48

 International Labour Office. Manual on the Measurement of Volunteer Work. 3.5. 

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