Presentation on theme: "Labour Statistics: Issues In Integrating Labour's Dual Roles of Input to Production and Social Resource Berkeley Hill, Federico Perali, Cristina Salvioni."— Presentation transcript:
Labour Statistics: Issues In Integrating Labour's Dual Roles of Input to Production and Social Resource Berkeley Hill, Federico Perali, Cristina Salvioni
Structure of paper Introduction Peculiarities of farm households’ labour supply Internal equilibrium of the household Time use and valuation of “unpaid” domestic labour Lessons from Italy and Wales Conclusions
Introduction Labour statistics have roles in Describing the changing size and demographics of this industry – cross sections and exit and entry Calculation of income indicators derived from economic accounts for agriculture Productivity measurement Decisions relating to the household and to input to agriculture are inseparable Great diversity in types of household
Peculiarities of farm households’ labour supply - 1 Domination by self-employed labour Difficulty of measuring labour time as an input Uncertain number of hours, especially with managerial input Simultaneous multiple tasking Leisure and work often non-separable Differing quality of individuals (age, education etc.)
Peculiarities of farm households’ labour supply - 2 Problems in statistics Often assume only one farmer per farm Some family workers are hired/waged Casual labour difficult to measure Business structure often hide nature of labour Workers on large institutional units in EU10 – how are they to be treated?
Peculiarities of farm households’ labour supply - 3 Importance of recognising that households supply labour (not a disembodied input) Decisions on using labour for agriculture only part of the household’s allocative decisions Uses for other economic activities need to be taken into account Other self-employment and employment Domestic activities (food production for own consumption, household reproduction etc.)
Internal equilibrium of the household -1 When production and consumption decision variables are non-separable, then market goods and leisure are not priced at the market value. Recent empirical work show that production decisions do depend on farmers’ preferences and endowments. Hence, shadow wages, rather than market wages, determine labor/leisure choices.
Internal equilibrium of the household - 2 In the calculation of farm income, the estimation of the implicit wage for household labor is a fundamental issue. Traditionally, “unpaid” family labor does not appear as an explicit cost of production. The shadow evaluation of family labor can be estimated using three different approaches: Accounting Objective market wage under competitive conditions Shadow wage
Internal equilibrium of the household - 3 Domestic work (h i ) is also defined as unpaid work. The availability of individual time-use data permits separating the time devoted to domestic work from the time allocated to pure leisure.
Internal equilibrium of the household - 4 Each member (i) of a farm household of size N can allocate its time endowment among the following activities, f i time devoted to farm labour activities; o i time devoted to off-farm labour (either in agriculture or in other sectors) and commuting time; h i time devoted to unpaid home production activities; l i time devoted to pure leisure (e.g. recreational activities); I i time devoted to rest and personal care.
Global, extended and full income Information about off-farm paid employment permits the derivation of global farm household income (Hill; Eurostat; OECD; Smeeding; Smeeding and Weinberg). The estimation of shadow wages for domestic activities permits the derivation extended household income (Lazear and Michael; Jenkins and O’Leary;INSTRAW). The sum of extended income and the value of leisure time forms the Beckerian notion of full income (Becker).
Italy - Composition of Full Income by Farm Household Typology—Euros
Italy - Inequality of Farm Incomes by Household Types and Gender—Gini Coefficients
Wales Existing data do not allow the broader allocation decisions to be monitored adequately (e.g. labour used for non-farm activities) Panel approach would be helpful People who leave farming are lost from the statistics Labour statistics on other activities in the countryside are particularly weak
Conclusions Labour statistics should recognise the household origins of this resource Surveys should be designed with this in mind Quantification of self-employed labour is difficult and statistics should not make simplistic assumptions Sufficient information should be provided to economists/analysts to allow shadow earnings to be considered