Experience on calculating the Unpaid Work of Households

Experience on calculating the Unpaid Work of Households Satellite Account of Mexico Progress and challenges November, 2015 Presented by: Raúl Figueroa Díaz raul. figueroa@inegi. org. mx

Mexico’s path on the valuation of Unpaid Work of Households Base year 2003 Annual publication series Care and domestic work * By Sex * By age groups * By Educational level * By Kinship * By Marital status * By residence * By number of household members * By Households with children under six years old. 2003 -2009 series Two population characteristics *Household income quintiles Unpaid work in the production of goods for own consumption * Indigenous language 2006 -2010 series 2007 -2011 series

Mexico’s path on the valuation of Unpaid Work of Households Base year 2008 data update Domestic work and care for children between 5 and 11 years old (from 2012) Care and domestic work simulator 2003 -2011 series 2003 - 2012 series Timely data Results are published 12 months after the reference year 2003 -2013 series

Information sources National Time Use Survey (ENUT, Spanish acronym) Number of hours of unpaid work (Population aged 12 years old and over) * Care and domestic work *Own consumption goods Mexican System of National Accounts (SCNM, Spanish acronym) The Goods and Services Account Average compensation of employees by economic activity according to the NAICS and equiparable to Unpaid Work of Households occupations. (Gross figures) National Survey of Occupation and Employment (ENOE) Wage per hour by Unpaid Work of Households occupations Hours effectively worked by occupation (CMO) or by economic activity according to the NAICS Hours of domestic work and care for children between the age of 5 and 11 years

Hours of care and domestic work Questions related to the unpaid productive activities were selected from the ENUT ü Number of hours ü Population Matches between the ENUT 2002 and 2009 are established according to the group of questions selected Techniques of interpolation and extrapolation are applied using a determinant variable, which is given by the ENOE. (Domestic work, shopping and household management, care provision)

Interpolation of Time Use information The National Survey of Occupation and Employment (ENOE) contains a module of Time spent on Non-Market Activities ü Learning activities ü Domestic work ü Shopping and household management ü ü Taking any household member to school, to a medical appointment or to other places ü Care provision ü Maintenance and minor repairs ü Construction activities ü Provision of free services to the community

Cost per hour: valuation methods Replacement cost: Hybrid Gross figures (SCNM) 16 wages of Represent the total labor cost the market requires in order to produce goods and services. It includes social security contributions. specialized workers (individual function method) and household workers wage rate (generalist method) Net figures (ENOE) Represent the total income (minus exceptions and deductions) a person would receive for performing a similar activity within the market sector.

Main results Net and Gross figures, 2013 Gross figures Net figures The economic value of unpaid care and domestic work accounts to 20. 5% of the total economy GDP. The economic value generated by women amounts to 42 500 pesos per capita, while in the case of men amounts to 13 900 pesos per capita.

Usefulness of the information Specialized Technical Committee of Information with a gender perspective § To promote statistical data generation with a gender perspective that contributes to the launch of a programme on gender equality. § 3 key indicators for the evaluation of unpaid work were included in the National Catalogue of Indicators: 1. 2. 3. The value of unpaid work of households relative to national GDP The value of unpaid work of households generated by women, relative to national GDP The value of unpaid work of households generated by men, relative to national GDP

Usefulness of the information National Program for Equal Opportunities and Non. Discrimination against Women (PROIGUALDAD) 2013 -2018 “Estimation of women’s contribution to the GDP, through the economic value of unpaid work of households”

Link to the Health Satellite Account of Mexico (CSSSM, spanish acronym) General care Take any household member to Activities aimed to a medical appointment or to get improve health vaccinated Health care Type of patients: Helping eating, bathing; Taking any • household member to the doctor; Temporal • performing therapies; giving Chronic medications • With any physical or (Passive care is not included) mental limitation Care provision Provision of help to other households and volunteer work Example Provision of help to other households Volunteer work General and health care Volunteering in non-profit organizations that provide health services Unpaid Work of Households Satellite Account

Share of Health Gross Domestic Product by type of production sector, 2008 -2013 5. 5 5. 7 5. 3 5. 4 1. 0 1. 1 1. 2 2. 2 1. 9 2. 1 2. 2 2. 3 2008 2009 2010 2011 2012 P 2013 4. 9 0. 9 2. 1 5. 3 Public Sector Private Sector Health unpaid work

Future perspective: Where are we going?

Simultaneous activities According to the methodological proposal by Eurostat, time spent on simultaneous activities is excluded from the economic valuation Double counting of working time (24 -hour limit per day) Weighted replacement cost for valuing simultaneous activities

Simultaneous activities However, in terms of the welfare of people who receive the service, can be identified that the performance of simultaneous activities –beside the main activity (which has already fulfill a need)- may cover a different need.

Behavioural studies when a second task is performed Functional Magnetic Resonance Imaging (FMRI) reveals the comprehension of auditory-language impact on brain activity during the performance of a driving task as the second activity.

Behavioural studies when a second task is performed It has been demonstrated that processing auditory-language while driving affects the driving task. The percentage change in signal intensity (parental lobe becomes active) decreased by 37% when driving task is performed without processing auditory language.

Leisure Childcare Cooking Housecleaning Shopping Transportation Main activities 8 hours Being on the lookout of a patient condition (gi) Monitoring children to do their homework t 1 Watching over food preparation t 0 Watching over barrels while filling with water Household mangement Simultaneous activities A brief outlook of simultaneous activities evaluation relative to the efficience of effective time 16 hours 24 hours t 8 t 24

A brief outlook of simultaneous activities evaluation relative to the efficience of effective time Value of simultaneous activities (VAS) is given by the following equation: If equation is reduced to its minimum expression: Where: VTNRH: Unpaid work of households (UWH) value tn: Hours (upper limit) gi: Efficiency ratio of time spent performing UWH main activities (threshold) ap: UWH main activity wp: Wage for UWH main activity as: UWH simultaneous activity ws: Wage for UWH simultaneous activity

A brief outlook of simultaneous activities evaluation relative to the efficience of effective time Then, we have unpaid work of households value: Simplifying: Where: VTNRH: Unpaid work of households (UWH) value tn: Hours (upper limit) gi: Efficiency ratio of time spent performing UWH main activities (threshold) ap: UWH main activity wp: Wage for UWH main activity as: UWH simultaneous activity ws: Wage for UWH simultaneous activity

Investigations in process Measuring welfare ØThe importance of unpaid care and domestic labor goes further its economic value if compared to the GDP. ØRepresents the real demand for the set of goods and services exchanged on the market, and its final destination according to their usefulness to households. ØGenerally, groceries acquired on establishments require additional treatment before being offered to the household members. ØUnpaid domestic labor allows to conceive welfare as the condition that enables people to enjoy good things in life and improve mood.

Investigations in process Health Care • Health assistance for everyone 3 out of every 10 people living in Mexico, are not willing to live in the same household with people with HIV/AIDS. ENSD 2010 In this regard, Mexico submitted the document “Care and support at home” at the 57 th session of the U. N Commission on the Status of Women, 2013.

Data publication Types of users “Tourist”. This type of user is characterised by the need of basic information without conducting a detailed research. “Farmer”. User who has a better knowledge about the information. This user accesses to a wider range of topics. “Miner”. Specialized user who wants full access to the detailed information in order to perform analysis.

Data publication Unpaid work of households Simulator The aim of this tool is to introduce and explain, in an easy and friendly way, the economic valuation method of unpaid work of households. http: //www. inegi. org. mx/est/contenidos/proyectos/cn/tnrh/simulador. aspx

Data publication Unpaid work of households Simulator The aim of this tool is to introduce and explain, in an easy and friendly way, the economic valuation method of unpaid work of households. http: //www. inegi. org. mx/est/contenidos/proyectos/cn/tnrh/simulador. aspx

Technical cooperation in Latin America and the Caribbean During the construction process of the Unpaid Work of Households Satellite Account, Mexico promoted technical cooperation among different national statistical offices in Latin America and the Caribbean: • National Administrative Department of Statistics (DANE). Colombia • National Statistical Institute (INEC), National Institute for Women (INAMU). Costa Rica • National Institute for Statisics and Censuses (INEC). Ecuador • National Statistical Institute for Statistics and Informatics (INEI), Manuela Ramos Movement. Peru

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