Home production: value and contents Case: Finland

Johanna Varjonen

Time Use & National Transfers Accounts Workshop

Nov 8-9, 2012 Stockholm

Object

• To give an idea of what so called household satellite accounts tell about the value of home production. Satellite accounts are compatible with the national accounts -> terminology from the SNA.

• To present results of Finnish household accounts for 2006

Definition of home (household) production

• Goods and services produced by the households for their own use or for other households.

• SNA non-market household production: agricultural

products, foodstuffs, house construction for own final consumption, housing services by owner-occupiers

and• Non-SNA production (domestic and personal services

for own consumption)

Household Satellite Account projects 2001 and 2006

In cooperation with:• Statistics Finland and National Consumer Research

Centre, Finland (NCRC)

• Statistics Finland: Provided data and expertise on national accounting, household budget survey data and time use survey data

• NCRC: Compiled the satellite accounts and prepared the reports

Method for valuation: input-based

Value of labour (working time x generalist’s housekeeper wage, gross)

+ Capital consumption (depreciation of durables and part of semi-durables used in production)

+ Taxes minus subsidies on production (home care subsidy; parental leave allowance)

____________________________________= Gross value added+ Intermediate consumption (purchased materials used in

production____________________________________________= Value of output (goods and services produced)

Production account:

Contents of outputs

• Housing • Meals and snacks• Clothing and laundry• Care of children and adults in need• Pet care• Volunteer work: informal help for other households

and unpaid volunteer work for organizations

Time use and consumption categories related to outputs

  Housing Meals & snacks Clothing Care Volunteer work

  Accommodation services, furnishing

Cleaning, maintenance, gardening

Renovation, repairs

Preparation of meals and snacks

Baking, preserving

Growing vegetables and fruits, picking berries, mushrooms

Producing garments

Washing laundry, ironing

Mending, care of shoes

Child care

Adult care

Pet care

Informal help to other households

Unpaid organizational work

Shopping Shopping for dwelling: furnishing, maintenance, cleaning, etc.

Shopping for groceries, facilities for cooking, etc.

Shopping for shoes and clothing, material and facilities, etc.

Shopping for goods for children and adult care

 

Transport / travel

Transport and travel related to renovation, maintaining, etc.

Transport and travel related to nutrition

Transport and travel related to clothing

Transport and travel related to child care and adult care

Transport and travel related to volunteer work

Planning and management

Related to all outputs

Information needed/ Data used

Value of labour

• Total unpaid work time of households per day or week

• Number of households in the country

Data: National time use survey in 1999-2000 (age of family members >10 years). (Statistics Finland)

• Wage statistics: average hourly wage of housekeepers in 2006

Consumption

• Consumption expenditure on intermediate / final consumption, durables & semi-durables

Data: Household budget survey in 2006 national accounts (Statistics Finland)

• Taxes, subsidies, durables, etc. from the National accounts data 2006

Results: value and distribution of home production in 2006

• Gross value added made 39% of the GDP

• Structure of productionValue of labour 72%

Capital consumption 4%

Intermediate consumption 24%

National aggregate level:Household production by type of service, million € €€/2006

Unpaid work by gender, % of the total

Time use survey data 1999-2000

Men WomenHousing, included in the GDP 80 20Housing, excluded from the GDP 39 61Meals & snacks 27 73Clothing 9 91Care 32 68Pets 35 65Informal help and volunteer work 48 52Shopping 45 55Travel related to unpaid work 69 31

Total 38 62

Household types

Single households• below 45 years of age, • 45-64 years• 65+ years

Couples• below 45 years of age• 45-64 years• 65+ years

Families with children• single parent families• two parents,

youngest child 0-6 years• two parents,

youngest child 7-17 years

Other families (multiple adult families)

Household level:Home production by type of household and type of service, €/hh

Value of production per adult person (producer), €/person

National aggregate level: Household production by type of household, million €

Discussion 1/2

• Household satellite accounts provide total value of services: value of labour & value of market products needed in production. -> Value of services can be compared with costs of services provided by public & market sector

• Costs of transport (e.g. cars, bikes), shopping time and household management are included in each service.

• Home care subsidies are subtracted (but not the housing allowances!).

• Once the calculations are done, the data can be played with

Discussion 2/2

• What is a ”good enough” way to value the domestic work?

• Time use data from 1999-2000, data too old?

• Ten family types but no age groups for families with children. More age groups – reliability?

• Consumption of services Need to be divided between family members in some way

Thank you!