Raquel del Val Carlos Angulo INE (Spain)

1. Value of non-market labour production of Spanish households in 2010 and its comparison with 2003 Raquel del Val Carlos Angulo INE (Spain)

2. Background Value of non-market labour production of households: basic methodology Time spent on labour production Which wage? Comparison of the values of non-market labour production of households between 2003 and 2010 Concluding remarks Presentation

3. Spanish TUS 2002-2003 and 2009-2010 Eurostat Manual on a Satellite Account of household production The Spanish satellite account (by Casero & Angulo) María Luisa Moltó, Ezequiel Uriel María Ángeles Durán Background (1)

4. Spanish TUS: highlights Carried out by INE Follows the guidelines of Eurostat Population scope: people aged 10 years and older residing in family dwellings Background (2)

5. In the “household questionnaire” a module was introduced about household domestic service in order to find out the number of employees, their working hours and the wages paid to them. This information was not available in 2003. Background (3)

6. In 2003 we used the wages reported in the “individual questionnaire” by the people who themselves work in domestic service.This information is also available in the 2010 survey.  Problem: People tend to report lower income than actually received. Therefore it is possible that the 2003 satellite accounts are undervalued.For the new satellite account we have to decide the source of information that we use and we hope this work will help us to make the right decision. Background (4)

7. Input-based method (time used in household production estimated by time use surveys) An appropiate wage to value the time spent on these activities. Value of the labour production (1) TIME X WAGE = Net Added Value of non- market labour production of households

8. Principal functions of the non-market productive activities of households Value of the labour production (2) • Housing • Nutrition • Clothing • Care services • Transport • Volunteer work

9. Time spent on non-market productive activities. 2010 Hours per year in millions Value of the labour production (3)

10. Time spent on non-market productive activities. 2010Percentage distribution Value of the labour production (4)

11. Value of the labour production (5) • Time spent on non-market productive activities. 2010Percentage distribution by function

12. Value of the labour production (6) • Time spent on non-market productive activities. 2010Percentage distribution by sex

13. Wages We chose the “replacement cost” using the general wage for domestic workers paid by households, obtained from the results of the time use survey. The net wage per hour worked amounts to €8.22. Value of the labour production (7)

14. Value of non-market productive activities of households in 2010. Million euros Value of the labour production (8)

15. Time spent on non-market productive activities. Hours per year in millions Comparison between 2010 and 2003 (1)

16. Time spent on non-market productive activities. Increase in percentage Comparison between 2010 and 2003 (2)

17. Two-thirds of non-market activities are carried out by women. In the last 7 years, the time spent on activities of non-market production of women has grown less than the time spent on these activities by men. First remarks (1)

18. Time spent on non-market productive activities. Total Hours per year in billions Comparison between 2010 and 2003 (3) Increase of production per household:5.5%  14.7% Population growth: 8.7%

19. Comparison between 2010 and 2003 (4) • Value of non-market productive activities of households as a percentage of GDP 41.6% 30.5% 25.6% (wage declared by the domestic workers) (wage paid by households)

20. Comparison between 2010 and 2003 (5) • Value of non-market productive activities of households. Billion euros at 2003 constant prices Real wages increase 41.4% 3.5%  in hours spent: 14.7% (wage declared by the domestic workers) (wage paid by households)

21. The wages of domestic workers have only risen in real terms by 3.5%. This is probably due to an oversupply of foreign workers, both before and after the economic crisis. It is more realistic than an increase of 41%. However the optimum way to perform this assessment is to use a net wage calculated from the wages reported by the employers, because if we use the net wage declared by the recipients (who tend to declare a lower wage), we obtain an underestimated value of non-market production in 2010, as it occurred in 2003. Therefore we have to re-estimate the production of households of 2003. Concluding remarks (1)

22. It is considered good practice to include in surveys of time use a specific module focused on domestic workers, in order to obtain the necessary information to estimate the satellite accounts of household production: wages paid, extra pay, hours work, etc.. The time use surveys could become an important tool for the estimation of these accounts, because they not only provide the time spent on these activities, but also wages that might be applied. Concluding remarks (2)

23. For more information: www.ine.es carlos.angulo.martin@ine.es Thank you very much for your attention