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1 Monetary valuation of unpaid work in Japan Susumu Kuwahara Research Fellow, ESRI, Japan December 2 nd,2010.

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Presentation on theme: "1 Monetary valuation of unpaid work in Japan Susumu Kuwahara Research Fellow, ESRI, Japan December 2 nd,2010."— Presentation transcript:

1 1 Monetary valuation of unpaid work in Japan Susumu Kuwahara Research Fellow, ESRI, Japan December 2 nd,2010

2 2 Background In Japan, strong gender bias in housework, child care and elderly care/nursing has been regarded as a serious problem. The need to measure the economic value of these activities and their burden on women in a form that allows comparison with other economic indicators is particularly strong.

3 3 Beijing Declaration and Platform for Action, The Fourth World Conference on Women Chapter 4 Strategic objectives and actions Paragraph 68 (b) Devise suitable statistical means to recognize and make visible the full extent of the work of women and all their contributions to the national economy, including their contribution in the unremunerated and domestic sectors, and examine the relationship of women s unremunerated work to the incidence of and their vulnerability to poverty.

4 4 History 1995 The Fourth World Conference on Women. 1997 The first report of the monetary valuation of unpaid work in Japan, estimates on 1981, 1986, 1991. 1998 The second report, estimates on 1996. 2009 The third report, estimates on 2001, 2006.

5 5 From the point of Measuring progress Measurement of Economic Welfare (MEW) by Tobin, Nordhaus(1973) includes unpaid work. Net National Welfare (NNW,1978), Japanese version of MEW, includes unpaid work, too. The Index of Sustainable Economic Welfare (ISEW), the Genuine Progress Indicator (GPI) also maintain unpaid work as their components.

6 6 1. Time Use Survey

7 7 Input Method As the valuation method, we use only the input method. The formula for assessment is; As a result, our assessment heavily relies on the time use survey. Value of unpaid work = per capita hours of unpaid work * hourly wage *population

8 8 STULA The "Survey on Time Use and Leisure Activities (STULA)" is conducted by the Statistics Bureau of the Ministry of Internal Affairs and Communications. The STULA aims to obtain comprehensive data on daily patterns of time allocation and leisure activities. The STULA was first administered in 1976, and has been carried out every five years since then.

9 9 The STULA covers those items Time use on a single day Participation in leisure activities during the past year Frequency of participation in leisure activities during the past year The survey also contains a questionnaire on attributes of individuals and households.

10 10 Two types of questionnaires since 2001 Questionnaire A adopts a pre-coding system (i.e. multiple choice style). Used for around 76,000 households. Questionnaire B uses diary method or after-coding system, which is more comparable to Harmonized European Time Use Surveys, HETUS, used for around 4,000 households.

11 11 2. Scope and method of monetary valuation of unpaid work

12 12 Scope of unpaid work "Unpaid work" defined here covers only unpaid work in which the service provider and the service beneficiary are separable (i.e., the service can be provided by a third party) and the service can be provided in the market. Namely, the "third party criteria" is applied.

13 13 Type of unpaid work Housework (cooking, cleaning, laundry, sewing and knitting, miscellaneous family affairs) Elderly/nursing care Child care Shopping Volunteer and social activities

14 14 The method of monetary valuation As for time use, we have only STULA. However, as for wages to be applied to each unpaid work, there are various options. Opportunity-cost-method (OC) Replacement-cost-method Specialist approach (RC-S) Generalist approach (RC-G)

15 15 Opportunity costs

16 16 Replacement-costs, Specialists Corresponding occupations20012006 HOUSEWORKHOUSEWORK Cooking average of chef and apprentice chef 1,2471,167 CleaningBuilding cleaning998976 LaundryLaundry man1,1331,026 Sewing and knitting Sewing machine operator879887 Miscellaneous family affairs Janitor1,3411,198 Elderly/nursing care Average of nurse assistance and home helper 1,139 Child careChild care workers1,2781,235 ShoppingJanitor1,3411,198 Volunteer work Weighted average of medical, social security, social welfare and education 1,8721,823 Hourly wages, unit: yen

17 17 Replacement-costs, Generalists YearHourly wage 1996880 2001965 2006973 Unit: yen

18 18 3. Valuation results using pre- coding system s data

19 19 Assessment using Pre-coding system data set

20 20 Men s share is extremely low Unit: billion yen WomenMenWomenMenWomenMen 198148,1825,08248,9063,50534,9452,395 198663,6788,15062,3045,44645,1923,844 199184,33014,52880,85810,12559,6847,044 199698,10418,01192,34913,38467,3968,673 2001106,11122,70494,96415,81275,34311,603 2006106,12025,74989,99717,48676,80513,824 (component ratio) 198190.59.593.36.793.66.4 198688.711.392. 199185.314.788.911.189.410.6 199684.515.587.312.788.611.4 200182.417.685.714.386.713.3 200680.519.583.716.384.715.3

21 21 Married women s unpaid work is close to paid work (OC method)

22 22 For men, as long as they earn, unpaid works continue to be minor (OC method)

23 23 4. Valuation results using after- coding system s (diary methods) data

24 24 After-coding system shows larger share of unpaid work Pre- coding Percent of GDP After- coding Percent of GDP OC method 131.926.0176.134.7 RC-S method 107.521.2140.527.7 RC-G method 90.617.9118.123.3 2006 figure, unit: billion yen

25 25 International Comparison CountryYearpercent of GDP Japan200617.9-34.7 Korea200413.7-22.5* USA200418-58 New Zealand 199939.0 Germany200143.4 Finland200136.1 * women only

26 26 5. Comments and conclusion

27 27 What happened? Gender researchers criticized our methodology. They insist that the wages used for women s unpaid work might be too small compared with wages used for men, because the wage gap itself is the result of gender discriminations and using these data rather confirms problems than improves situations.

28 28 However, we think … Despite several shortcomings in the valuation methods, the three reports of the monetary valuation of unpaid work were successful in galvanizing discussions among people on how to evaluate women s role in the society and economy through unpaid work in Japan.

29 29 We will go ahead. The Council for Gender Equality recommended that the research should be conducted on the measurement of the unpaid work, such as housework, child care, elderly care, nursing, and volunteer activities, as well as economic and social assessments of the child care and elderly care/nursing.

30 30 End Thank you for listening patiently

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