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Assessing the value of household work based on wages demanded on online platforms for substitutes

Author

Listed:
  • Simona Jokubauskaitė

    (University of Natural Resources and Life Sciences)

  • Alyssa Schneebaum

    (Vienna University of Economics and Business)

Abstract

We propose an improved method to assess the economic value of unpaid housework and childcare. Existing literature has typically assigned a minimum, generalist or specialist’s wage, or the performer’s opportunity cost to the hourly value of these activities. Then it was used to calculate macro-level value based on the number of hours spent in this work. In this paper, instead of imputing an average or minimum wage for housework and childcare to determine a value to the work, we use the actual local wage rate requested for these services from providers on online platforms. Applying this method to Austrian Time Use Survey data shows that the value of unpaid childcare and housework, had it been paid, would be equivalent to about 22% of the 2018 GDP.

Suggested Citation

  • Simona Jokubauskaitė & Alyssa Schneebaum, 2022. "Assessing the value of household work based on wages demanded on online platforms for substitutes," Review of Economics of the Household, Springer, vol. 20(1), pages 153-160, March.
    • Handle: RePEc:kap:reveho:v:20:y:2022:i:1:d:10.1007_s11150-021-09545-y
    DOI: 10.1007/s11150-021-09545-y
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    References listed on IDEAS

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    1. Jayoung Yoon, 2014. "Counting Care Work in Social Policy: Valuing Unpaid Child- and Eldercare in Korea," Feminist Economics, Taylor & Francis Journals, vol. 20(2), pages 65-89, April.
    2. Sarah Gammage, 2010. "Time Pressed and Time Poor: Unpaid Household Work in Guatemala," Feminist Economics, Taylor & Francis Journals, vol. 16(3), pages 79-112.
    3. Reinhard Hössinger & Florian Aschauer & Sergio Jara-Díaz & Simona Jokubauskaite & Basil Schmid & Stefanie Peer & Kay W. Axhausen & Regine Gerike, 2020. "A joint time-assignment and expenditure-allocation model: value of leisure and value of time assigned to travel for specific population segments," Transportation, Springer, vol. 47(3), pages 1439-1475, June.
    4. Kässi, Otto & Lehdonvirta, Vili, 2018. "Online labour index: Measuring the online gig economy for policy and research," Technological Forecasting and Social Change, Elsevier, vol. 137(C), pages 241-248.
    5. Jooyeoun Suh & Nancy Folbre, 2016. "Valuing Unpaid Child Care in the U.S.: A Prototype Satellite Account Using the American Time Use Survey," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(4), pages 668-684, December.
    6. J. Steven Landefeld & Barbara M. Fraumeni & Cindy M. Vojtech, 2005. "Accounting for Nonmarket Production: A Prototype Satellite Account Using the American Time Use Survey," BEA Papers 0056, Bureau of Economic Analysis.
    7. Nadim Ahmad & Seung-Hee Koh, 2011. "Incorporating Estimates of Household Production of Non-Market Services into International Comparisons of Material Well-Being," OECD Statistics Working Papers 2011/7, OECD Publishing.
    8. Killian Mullan, 2010. "Valuing Parental Childcare in the United Kingdom," Feminist Economics, Taylor & Francis Journals, vol. 16(3), pages 113-139.
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    Cited by:

    1. Cieplinski, André & D'Alessandro, Simone & Dwarkasing, Chandni & Guarnieri, Pietro, 2023. "Narrowing women’s time and income gaps: An assessment of the synergies between working time reduction and universal income schemes," World Development, Elsevier, vol. 167(C).

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    More about this item

    Keywords

    Unpaid work; Valuation; Domestic work; Housework; Care work;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • G59 - Financial Economics - - Household Finance - - - Other

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