Implementation of the Unpaid Work of Households Satellite Account of Mexico: The scheme of time and economic valuation

Transcription

1 Implementation of the Unpaid Work of Households Satellite Account of Mexico: The scheme of time and economic valuation The National Institute of Statistics and Geography (INEGI) develops since 2011, the Unpaid Work of Households Satellite Account of Mexico (CSTNRHM), in order to attempt to provide information on the economic valuation of unpaid work that women and men household members made on the generation of required services which satisfies the household s needs, it showing the importance of this unpaid work in consumption and population wellbeing. This scheme work is done recurrently and timely, based on the 2008 SNA and the EUROSTAT s "Proposal for a Methodology of Household Satellite Accounts 1, which defines the unpaid work of household as the spent time on unpaid care and domestic work by household members to produce services for consumption thereof, without obtaining a payment or compensation, and so are outside of the national accounts production boundary. The results of this satellite account allow to highlight analysis elements for shaping public policy and decision-making on gender equity, consumption and household expenditure, the total workload, care of children, the eldercare, care of chronic and temporary sick, the homeschooling, among other issues. Furthermore, these results have been used for shaping key indicators for the development of the country, such as "estimate of the women contribution to GDP by the economic value of unpaid work done at households" inscribed in the National Program for equal Opportunity and non-discrimination against women , which aims to achieve substantive equality between women and men through public policies focused on reducing existing inequality gaps. In that way, among the main results from the CSTNRHM it can be highlighted the total workload in the economy, integrated by the spent time that people devotes to paid, unpaid and volunteer work, etcetera. In fact, in 2014, it was observed that women had the highest workload, with million of hours per week versus million hours done by men; that is, for each 10 hours done by women, men made 8.3 hours. In this regard, it is noted that in 2014 the responsibility of unpaid care and domestic work lies mainly on women, who contributes to these activities with 65.2% of her total working time and contributing around 32 every 100 hours of market work. In contrast, men's activities are mainly aim to job market (which usually lets obtain some kind of income) and the production of goods for own final consumption with 1 Eurostat, Household Production and Consumption: Proposal for a Methodology of Household Satellite Accounts, Eurostat, 2003.

2 76.7% of its total work, dedicating only about 23 out of 100 their of unpaid care and domestic work. FIGURE 1 COMPOSITION OF THE TOTAL WORKLOAD OF THE ECONOMY IN HOURS BY SEX, 2014 P (Millions of hours) Market work Unpaid work in ownconsumption goods Activities of unpaid care and domestic work ,946 5, , Women Men P Preliminary results Source: INEGI. Breaking down the information relating to household unpaid work by type of function, providing "care and support" for household members amounts to 8.3% of national GDP, followed by "feeding" with 4.6%, "cleaning and housing maintenance" 3.9%, "shopping and household management" 3.2%, "providing help to other households and volunteer work" 2.5% and finally "laundry and footwear care" with 1.7% remaining.

3 Total Care and Support Feeding Cleaning and housing maintenance Shopping and household management Provinding help to other households and volunteer work Laundry and footwear care FIGURE 2 CARE AND DOMESTIC WORK OF HOUSEHOLDS BY TYPE OF SERVICES IN TERMS OF 2014 P GDP (Percentage) 30% 25% 24.2% 20% 15% 10% 5% 0% 8.3% 4.6% 3.9% 3.2% 2.5% 1.7% P Preliminary results Source: INEGI. The detail in which the results are presented allows to persuade the decision maker to identify possible uses of this valuation scheme, is posible to note that activities where participation of women is majority, their associated wages are lower than those concerning activities where the participation of men is more intense. In practice public policies related to gender equality, attending this situation, suggest a greater participation of men in activities where female is predominance, such as caring children in home, for example through the establishment of parental care, that in same mothering circumstances allows reduce the inequality gap between men and women, which helps to eliminate stereotyped gender roles 2. For issues related to the economic valuation of unpaid work in Mexico, are followed the generally accepted recommendations in many studies, such as the replacement cost, which is about the extent of disbursement amount they would have to pay to someone who makes the productive activity required in order to satisfy the household members needs. In the same line, for example, this coincides with the scheme valuation of volunteer work (approach replacement cost) recommended by the International Labour Organization (ILO) 3, whose recognizes additional forms of economic valuation, such as average gross salaries paid in equivalent sectors (community, welfare and social services); or weighted average via of average wages for all related activities (volunteer work); or average wages of related industries; or even the use of quality coefficients in the execution of the households work, compared with the efficiency of the activities offered by market. 2 See article 92 of Administrative Code of the State of Chihuahua, Mexico. 3 International Labour Organization, Manual on the measurement of volunteer work, ILO, 2012.

4 In this sense and according to other experiences as Non-profit Institutions (NPI) satellite account and Housing satellite account, where both volunteer work such as helping household (members or not) are considered, the economic valuation is carried out aligned to wages that are perceived at market for the work done through a nonprofit institution (as a bricklayer, doctor, gardener, accountant, etcetera), or which is directly done for household (members or not) care temporary and chronic patients (nurses, general assistants, etcetera). For practical purposes of this case study, the unpaid work economic valuation process has been illustrated briefly, without some technical details in order to give a clearer roadmap. For example, in the economic valuation of unpaid work hours, wages average are used (although in practice equivalent wages are used in the market for different tasks), achieving the exercise and overall results. As support, formulas have been expressed in order to obtain different table breakdowns (expressed as A, B, C, D, E, F, G, H, I and J).

5 TABLE. MAIN RESULTS OF UNPAID WORK OF HOUSEHOLDS SATELLITE ACCOUNT OF MEXICO, SERIES A Weekly hours per person of unpaid household services (UHS) National Women Men B Population that realizes unpaid household services (thousands) Total 68,499 70,176 72,145 73,774 75,690 77,567 79,960 81,950 84,198 86,765 88,984 91,129 Women 37,978 38,656 39,495 40,148 40,958 41,747 42,813 43,961 45,248 46,707 47,979 49,211 Men 30,520 31,520 32,650 33,626 34,731 35,820 37,148 37,989 38,950 40,058 41,005 41,918 C = A x B Millions of hours per week of unpaid household services Total Women Men D = Cx52 Weeks Millions of hours per year of unpaid household services Total Women Men E Wages per hour by generalist approach (euros) 1, 4 Average F = D x E Monetary value of unpaid household services by generalist approach (Millions of euros) Total 57,162 62,943 69,767 77,041 84,082 89,273 91,091 97, , , , ,292 Women 47,525 51,932 57,023 62,452 67,702 71,317 72,095 76,891 84,109 90,693 97, ,188 Men 9,638 11,011 12,743 14,589 16,380 17,956 18,995 20,879 23,384 25,842 28,398 31,105 G Wages per hour by equivalent individual function approach (euros) 2, 4 Average H = D x G Monetary value of unpaid household services by equivalent individual function approach (Millions of euros) Total 110, , , , , , , , , , , ,878 Women 89,986 97, , , , , , , , , , ,853 Men 20,552 23,427 25,007 28,536 32,297 35,693 38,240 42,884 48,280 48,978 53,903 62,025 I Wages per hour by hybrid approach (euros) 3, 4 Average J = D x I Monetary value of unpaid household services by hybrid approach (Millions of euros) Total 79,026 86,608 93, , , , , , , , , ,896 Women 63,114 68,697 73,599 83,228 90,990 96,513 98, , , , , ,015 Men 15,912 17,912 19,654 22,644 25,566 28,101 29,662 32,825 37,020 41,449 45,220 52,881 1 For purposes of the exercise, an average between the salary of domestic workers and the salary of specialists to calculate the value of volunteer work was used. 2 For purposes of the exercise, an average salary of occupations of specialists to evaluate each of the activities of unpaid domestic and care work was used. 3 For purposes of the exercise, an average between the salary of domestic workers for activities that household members usually do and the salaries of the specialists occupations for other activities was used. 4 For comparison purposes, we used April 11th, 2016 exchange rate of Mexican peso against euro (1 peso = euros). Source: INEGI, Sistema de Cuentas Nacionales de México, Cuenta satélite del trabajo no remunerado de los hogares de México.

6 Thus, "Weekly hours per person" (A) are obtained from the National Employment Survey (ENOE by Spanish acronym), as well as those corresponding to Population that realizes unpaid household services (B); then the mass of hours per week of unpaid household services (C) is the result of multiply A by B, and expanding that by 52 weeks, hours per year of unpaid household services (D) is obtained. Meanwhile, the variable (E) Wages per hour by generalist approach is estimated by the price per hour of an activity in the market that can cover most of the daily requirements of the household, such as average wage of domestic workers. Although is generally considered average hourly wages of all activities for which equivalence in the market could help replace the household production activity. The variable (G), Wages per hour by equivalent individual function approach is determined by the price per hour of an activity in the market that is similar to that can cover each of the household productive activities performed without payment. The variable (I), Wages per hour by hybrid approach is determined using (E) to value the productive household activities that usually are perform by domestic employees in combination with variable (G) for complete the activities. As shown in the table, obtaining the economic value of unpaid work of households is performed by multiplying the mass of Hours per year of unpaid household services (D) by the determined price for each kind of valuation, (E), (G) or (I). It is noteworthy that economic valuation takes place regarding the activities of the person who performs the activity and not who receives the service. Otherwise it should be counting the value of the main provided service, plus the simultaneously provided service value. The valuation of this secondary activity is an exception, so is further to discussion. Attempting with this case study to generate information which supports public policies of equality and equity between men and women, have been highlighted some recommendations that should be usefull for researchers who develops the households unpaid work valuation process, in order to share information and knowledge generation into the framework of this important satellite account. Recomendations To design the conceptual and methodological aspects for the development of this satellite account it is suitable supported by a technical group engaged to the promotion and protection sector of gender equity, women s institutes, academy, and coordination with the responsible national accounting entity.

7 It would be usefull to work in a coordinated way onto the time use survey design, as well as employment and household income and expenditure surveys, to identify the necessary information to implementation of the satellite account, trying to variables in the different surveys have the same sense and meaning and allow consistent monitoring of the statistical series. To establish working relationships with technical staff of other satellite accounts such as health and NPI. Particularly for the analysis of information on the households volunteer work carried out by an institution and on the dedicated hours to patient care (including valuation of both variables). To calculate impartially and under rules and framework of the System of National Accounts, as well as specific recommendations for the development of this satellite account. Besides having experience in national accounts, it is important to consider adding staff with specific skills in statistics, for the variables treatment and review the data quality and statistical series forecast. To request to implementation use time surveys department the statistical accuracy of the selected variables, in order to verify the statistically significant of breakdown. This sholud be a common practice to ensure the statistics quality. To disseminate the outputs of the satellite account it should be considering the variety of users profiles, in order that the information will be usefull and generate knowledge. The information can contained databases, tables, infographics, dynamic graphs and other applications that support the disseminate of results. Towards the construction of the vision of the account of unpaid household work The technical treatment of the services generated by the household for its own final consumption and whose benefit can be transfered to a third party, allows to generate a perspective of how they could measure this activity in the central framework of the SNA, as the imputed rental, changes in personal choices (which become an economic decisions) make an exchange between the production boundary and the household consumption levels, because the individual that receives the benefit of an unpaid household activity as feeding or laundry, can find an option for a similar service in the market as a result of a change in their situation in relation to his own household. The imputation of unpaid work would reflect those changes in overall consumption, considering decisions of many consumers, avoid distortions that could be generated on macroeconomic variables such as consumption, saving or production. Same case for which the housing imputed rental occupied by their owners in the SNA is

8 considered, and this could happen with the measurement and valuation of volunteer work in total employment.