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Home production: value and contents Case: Finland

Home production: value and contents Case: Finland. Johanna Varjonen Time Use & National Transfers Accounts Workshop Nov 8-9, 2012 Stockholm. Object.

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Home production: value and contents Case: Finland

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  1. Home production: value and contents Case: Finland Johanna Varjonen Time Use & National Transfers Accounts Workshop Nov 8-9, 2012 Stockholm

  2. 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

  3. 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 constructionfor own final consumption, housing services by owner-occupiers and • Non-SNA production (domestic and personal services for own consumption)

  4. 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

  5. Method for valuation: input-based Production account: Value of labour (working time x generalist’s housekeeper wage, gross) + Capital consumption (depreciation of durables and part of semi-durables used inproduction) + Taxes minus subsidieson production (home care subsidy; parental leave allowance) ____________________________________ = Gross value added + Intermediate consumption (purchased materials used in production ____________________________________________ = Value of output (goods and services produced)

  6. 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

  7. Time use and consumption categories related to outputs

  8. 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 1999-2000 (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 Information needed/ Data used

  9. 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 consumption 4% Intermediate consumption 24%

  10. National aggregate level: Household production by type of service, million € €€/2006

  11. Unpaid work by gender, % of the total Time usesurvey data 1999-2000

  12. Single households below 45 years of age, 45-64 years 65+ years Couples below 45 years of age 45-64 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 types

  13. Household level: Home production by type of household and type of service, €/hh

  14. Value of production per adult person (producer), €/person

  15. National aggregate level: Household production by type of household, million €

  16. Discussion 1/2 • Householdsatelliteaccountsprovidetotalvalue of services: value of labour & value of market products needed in production. -> Value of servicescanbecompared with costs of servicesprovidedbypublic & marketsector • Costs of transport (e.g. cars, bikes), shoppingtime and household management areincluded in eachservice. • Home caresubsidiesaresubtracted (butnot the housingallowances!). • Once the calculationsaredone, the data canbeplayed with

  17. Discussion 2/2 • What is a ”goodenough” way to value the domesticwork? • Time use data from 1999-2000, data tooold? • Tenfamilytypesbut no agegroups for families with children. Moreagegroups – reliability? • Consumptionof services Need to bedividedbetweenfamilymembers in someway

  18. Thank you!

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