GDP and the value of family caretaking: how much does Europe care?

Abstract

GDP and the Value of Family Caretaking:How Much Does Europe Care?This study estimates the size and value of unpaid family caretaking activities at a European level. While at a country level several studies are available, a comprehensive evaluation for Europe as a whole was missing so far, mainly due to data limitations. This paper fills this gap using a method that merges the information of an EU household survey (EU-SILC) with a time use survey (HETUS). Monetary values of unpaid family domestic work and unpaid family childcare work are obtained applying both the opportunity cost and the market replacement approaches. For Europe as a whole, the total value of these activities ranges between 20.1 per cent and 36.8 per cent of the EU GDP, depending on the applied methodology. The national values of these activities are discussed and an interpretation of the country differentials in the family caretaking gender gaps is given in terms of differences in culture, economic development and welfare state.JEL Classification: D19, J16, R20

Household production and consumption over the life cycle: National Time Transfer Accounts in 14 European countries

“…The value of services provided for other households varies between 1% of GDP in Bulgaria and 2.6% of GDP in Poland. 27 These results are similar to Giannelli, Mangiavacchi and Piccoli (2011). They estimate the gross value of total home production between 12% and 47% of GDP in 24 European countries.…”

“…The inclusion of household production in analysing the age patterns of economic activity is justified by the considerable value produced by households. Similarly to other studies (Goldschmidt-Clermont and Pagnossin-Aligisakis 1995; Giannelli, Mangiavacchi and Piccoli 2011;Miranda 2011), our calculations also suggest that the value of home production is between one-fourth and one-half of GDP in the analysed countries. In addition, as argued by Gershuny (2011), the conventional GDP measure takes a view of labour that is too narrow to correctly represent cross-country differences and historical changes in economic activity.…”

“…First estimates of Household Satellite Accounts (HSA) were published in the late 1990s and early 2000s (e.g., Ironmonger 1996;Holloway, Short, and Tamplin 2002;Soupourmas and Ironmonger 2002;Sik and Szép 2003). Comparative accounts are also accessible, mostly for European and OECD countries (Goldschmidt-Clermont and Pagnossin-Aligisakis 1995; Giannelli, Mangiavacchi, and Piccoli 2011;Miranda 2011).…”

“…Giannelli, Mangiavacchi, and Piccoli (2011) also applied an imputation method using a simple variable called 'life cycle' that combines large age groups with the family status of the individual. They imputed HETUS time use by gender and life cycle to EU-SILC for a cross-country analysis of total home production in Europe.…”

The importance of informal carers for primary health care

“…1 Based on this definition and according to the data collected through the European Quality of Life Survey, it is estimated that there are more than 100 million carers in the EU today -about a fifth of the total European population (Eurofound, 2012). Estimates also suggest that the economic value of unpaid informal care -as a percentage of the overall cost of formal long-term care provision -in EU Member States ranges from 50 to 90% -a huge contribution in times of austerity and tight health and social budgets (Giannelli et al, 2012).…”