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 HousingMeals & snacksClothingCareVolunteer 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 (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 production Value of labour 72% Capital consumption4% 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

Household types Single households below 45 years of age, years 65+ years Couples below 45 years of age 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 , 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!