This paper analyzes how accounting for household production might affect labor market statistics. It proposes new indices based on time spent working in the home or market to better capture differences between countries. Applying these indices to EU and US time use data, the paper finds that accounting for household work increases total work rates close to 100% and reduces cross-country differences. However, differences remain in intensity of work, with women spending twice as many hours on household work as men in most countries except Italy.

1. ACCOUNTING FOR TOTAL WORK
Andrea Brandolini
and
Eliana Viviano
Discussant: Conchita D’Ambrosio

2. Aim
The aim of this paper is to analyse how
accounting for household production might
affect labour market statistics.

3. Main results:
•the traditional headcount ratios focussing
on the number of people carrying out some
home and market production may not be
very informative about cross-country
differences in market and work at home.

4. Main results:
•propose a general class of three-parameter
indices based on the time spent
working in either type of work.
Application to large EU countries and the
USA.

5. Paper very well written.
Very good review of the literature, excellent
motivation.
It is a pleasure to read it.
Before submission reduce the number of
tables and figures (too many compared to
the text).

6. It is a relevant topic.
The problem:
The standard definition of the employment rates
considers only activities that are carried out in
the market, i.e. contribute to gross domestic
product.
Childcare counts for the employment rate when performed by a paid
nanny, but not when performed by a grandparent, although the
services provided and the effects on child well-being need not be
different.

7. The proposed solution:
Add some home production (following the 2013
Resolution of the International Conference of
Labour Statisticians on own-use production
work-OUP)
but
Reconsider standard labour market statistics.

8. Because:
Headcount ratios may not be very revealing:
during the week, an overwhelming majority of
people engages in household activities, when
broadly defined.
We may need to focus on the intensity of this
engagement: what matters is, then, how much
time is spent in working at home vis-à-vis the
time spent in paid work, on one side, and
leisure and remaining activities, on the other.

9. Let us see why.
Data: harmonized time use microdata made
available by the University of Oxford in the
context of the Multinational Time Use Study
(MTUS).
Countries: France, Germany, Italy, the
Netherlands, the United Kingdom (UK) and the
United States (US).
Years: 1995 to 2005.
Sample: individuals aged 15-64

10. The proposed index:
generalization of BV (2014)
Standard headcount employment rate
=
Number of employed persons /
Number of persons in the reference population
Problem: it fails to discriminate among people
spending very different time at work (Somebody
working one hour in the reference week counts
as much as somebody working 40 hours).

11. The previous index
BV define work intensity as the ratio of the total
numbers of hours worked by individual i during a
reference period divided by a benchmark.

12. The current index

13. The current index

14. Country and sex Employment
and OUP
work
Employment
only
OUP work
only
No work Total
Men and Women
France 35.1 24.7 27.5 12.6 100.0
Germany 40.1 23.5 26.2 10.1 100.0
Italy 26.7 26.6 34.1 12.6 100.0
Netherlands 45.3 27.9 19.0 7.8 100.0
UK 39.5 29.3 23.2 8.0 100.0
US 44.4 30.6 17.6 7.4 100.0
Men
France 27.7 40.0 16.8 15.5 100.0
Germany 37.4 36.4 14.3 11.9 100.0
Italy 21.3 45.0 16.9 16.9 100.0
Netherlands 36.4 42.8 11.8 9.1 100.0
UK 33.2 41.7 14.7 10.4 100.0
US 40.7 40.9 9.9 8.5 100.0
Women
France 42.5 9.7 38.0 9.8 100.0
Germany 42.4 12.4 36.5 8.7 100.0
Italy 31.9 8.8 50.9 8.4 100.0
Netherlands 52.2 16.5 24.5 6.8 100.0
UK 45.7 17.2 31.6 5.6 100.0
US 47.9 20.7 25.0 6.4 100.0
P op. Share in employment and OUP, aged 15-64 (per cent of working-age persons)

15. The results: headcounts

16. Country and sex Employment Employment
Headcount Rates
TWR(0,0)
OUP work Total work
TWR(0,1)
LFS MTUS MTUS MTUS
Men and women
France 60.7 59.9 62.6 87.4
Germany 65.7 63.6 66.4 89.9
Italy 55.1 53.3 60.8 87.4
Netherlands 70.3 73.3 64.3 92.2
UK 70.7 68.8 62.8 92.0
US 71.3 75.0 62.0 92.6
Men
France 67.7 67.7 44.5 84.5
Germany 72.8 73.8 51.8 88.1
Italy 68.8 66.2 38.2 83.1
Netherlands 79.1 79.1 48.1 90.9
UK 77.1 74.9 47.8 89.6
US 77.2 81.6 50.7 91.5
Women
France 53.5 52.2 80.3 90.2
Germany 58.3 54.8 79.0 91.3
Italy 41.5 40.7 82.9 91.6
Netherlands 61.2 68.7 76.7 93.2
UK 64.3 62.9 77.3 94.4
US 65.5 68.6 73.0 93.6

17. Country and sex Employment Employment
Headcount Rates
TWR(0,0)
OUP work Total work
TWR(0,1)
LFS MTUS MTUS MTUS
Men and women
France 60.7 59.9 62.6 87.4
Germany 65.7 63.6 66.4 89.9
Italy 55.1 53.3 60.8 87.4
Netherlands 70.3 73.3 64.3 92.2
UK 70.7 68.8 62.8 92.0
US 71.3 75.0 62.0 92.6
Men
France 67.7 67.7 44.5 84.5
Germany 72.8 73.8 51.8 88.1
Italy 68.8 66.2 38.2 83.1
Netherlands 79.1 79.1 48.1 90.9
UK 77.1 74.9 47.8 89.6
US 77.2 81.6 50.7 91.5
Women
France 53.5 52.2 80.3 90.2
Germany 58.3 54.8 79.0 91.3
Italy 41.5 40.7 82.9 91.6
Netherlands 61.2 68.7 76.7 93.2
UK 64.3 62.9 77.3 94.4
US 65.5 68.6 73.0 93.6
The MTUS rates are
consistently higher than
the LFS rates in the US,
whereas the opposite
happens in the UK and
Italy. The largest
discrepancy is found for
the employment rate of
Dutch women

18. Country and sex Employment Employment
Headcount Rates
TWR(0,0)
OUP work Total work
TWR(0,1)
Cross-country
differences are
remarkably
smaller for the
OUP work rates.
Headcounts vary
between 60.8 per
cent in Italy and
66.4 per cent in
Germany.
Sex differences
are larger for OUP
work than for
employment, and
reach a maximum
in Italy.
LFS MTUS MTUS MTUS
Men and women
France 60.7 59.9 62.6 87.4
Germany 65.7 63.6 66.4 89.9
Italy 55.1 53.3 60.8 87.4
Netherlands 70.3 73.3 64.3 92.2
UK 70.7 68.8 62.8 92.0
US 71.3 75.0 62.0 92.6
Men
France 67.7 67.7 44.5 84.5
Germany 72.8 73.8 51.8 88.1
Italy 68.8 66.2 38.2 83.1
Netherlands 79.1 79.1 48.1 90.9
UK 77.1 74.9 47.8 89.6
US 77.2 81.6 50.7 91.5
Women
France 53.5 52.2 80.3 90.2
Germany 58.3 54.8 79.0 91.3
Italy 41.5 40.7 82.9 91.6
Netherlands 61.2 68.7 76.7 93.2
UK 64.3 62.9 77.3 94.4
US 65.5 68.6 73.0 93.6

19. Country and sex Employment Employment
Headcount Rates
TWR(0,0)
OUP work Total work
TWR(0,1)
LFS MTUS MTUS MTUS
Including
household
production raises
the proportion of
people engaged in
any work activity
very close to 1.
Headcounts for
total work are not
totally
uninformative: not
only cross-country
differences do not
vanish, but also
the disaggregation
by age and sex
reveals diverse
patterns.
Men and women
France 60.7 59.9 62.6 87.4
Germany 65.7 63.6 66.4 89.9
Italy 55.1 53.3 60.8 87.4
Netherlands 70.3 73.3 64.3 92.2
UK 70.7 68.8 62.8 92.0
US 71.3 75.0 62.0 92.6
Men
France 67.7 67.7 44.5 84.5
Germany 72.8 73.8 51.8 88.1
Italy 68.8 66.2 38.2 83.1
Netherlands 79.1 79.1 48.1 90.9
UK 77.1 74.9 47.8 89.6
US 77.2 81.6 50.7 91.5
Women
France 53.5 52.2 80.3 90.2
Germany 58.3 54.8 79.0 91.3
Italy 41.5 40.7 82.9 91.6
Netherlands 61.2 68.7 76.7 93.2
UK 64.3 62.9 77.3 94.4
US 65.5 68.6 73.0 93.6

20. Figure 3 shows the age profile of the total work rate,
together with the employment and OUP work rates.
In all countries, the headcounts for OUP work is
remarkably smaller for young individuals than for older
people. It reaches 50% between 25 and 30 years of age,
which is the age at which people typically end studying
and start living alone, except for Italy, where this
happens after age 30.

21. Aside from the US, the OUP work rate does not
decrease after age 55 like the employment rate, but
rather it steadily goes up.
In all countries, the headcounts for total work
approaches 1 after age 30 and then declines slightly
after age 50.
This decline characterises only men, who partially
substitute employment in the market with OUP work as
they aged. As OUP work is so more widespread among
them, for women there is virtually no drop in the total
work rate.

22. In brief, the analysis of these indicators of the
extensive participation margin suggests that the
diversity in total work across countries is not
negligible, but is small in comparison to that in
employment.
These differences are likely to reflect dissimilarities
in the weight of the young in the total population
and the variety in the timing of family formation
and fertility.

23. The results: intensity

24. Country and sex Employment
TWR(0,1)
OUP work Total work
TWR(1,1)
Men and Women
France 13.3 Italy above 13.1 France
26.4
Germany 12.3 due to Male.
13.7 26.0
Italy 13.8 14.3 28.1
Netherlands 12.7 Also for 13.7 TWR(1,1).
26.4
UK 14.7 13.5 28.2
US 16.7 13.8 30.4
Men
France 16.4 7.9 24.4
Germany 16.1 9.4 25.4
Italy 18.9 6.7 25.6
Netherlands 17.9 9.0 26.9
UK 18.3 9.3 27.6
US 19.8 10.2 30.0
Women
France 10.1 18.2 28.3
Germany 9.0 17.5 26.5
Italy 8.9 21.6 30.6
Netherlands 8.7 17.3 26.0
UK 11.2 17.6 28.7
US 13.6 17.2 30.8
Intensity

25. Country and sex Employment
TWR(0,1)
OUP work Total work
TWR(1,1)
Men and Women
France The 13.3 intensity of
13.1 26.4
Germany OUP work 12.3 is rather
13.7 26.0
Italy similar 13.8 across
14.3 28.1
Netherlands countries 12.7 if we look
13.7 26.4
UK at the 14.7 means, not if
13.5 28.2
US we look 16.7 at the
13.8 30.4
Men
breakdown by sex.
France 16.4 7.9 24.4
Germany Women 16.1 spend in
9.4 25.4
Italy 18.9 6.7 25.6
Netherlands household about 17.9 work
9.0 26.9
UK 18.3 twice the
9.3 27.6
US hours 19.8 spent by men,
10.2 30.0
Women
except for Italy
France where 10.1 this ratio rises
18.2 28.3
Germany above 3.
9.0 17.5 26.5
Italy 8.9 21.6 30.6
Netherlands 8.7 17.3 26.0
UK 11.2 17.6 28.7
US 13.6 17.2 30.8
Intensity

26. The age profiles of the intensity-weighted rates of
total work show that in the US and in Italy people
aged between 30 and 55 work more than in
other countries.
The difference persists also after age 55.
However, it depends on high employment
intensity of both men and women in the US, but
on very high OUP intensity of women of aged 55
years or more in Italy.

27. The distribution of intensity dramatically changes
when we compare employment to total work.
Cross-country differences in work participation
narrow significantly when we take a broader
concept of work that includes household
production.