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Estimating the monetary value of non-market labor in Mexico
National Transfer Accounts Time Use and Gender Workshop
Estela RiveroJune 13-14, 2011
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Objectives
• Accomplishments• Data• Results• Challenges and plans for the future
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Accomplishments• Donehawer, Lee and
Mason:1) Identify time spent in
non-market productive activities by age and sex
2) Impute a wage3) Determine the age
shapes of production, consumption and transfers
• In Mexico:1) Identify time spent
in non-market productive activities by age and sex
2) Determine the age shapes of production, consumption and transfers
3) Impute a wageEstela Rivero – Estimating the monetary value of non-market labor in Mexico
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Data• Mexico has 3 time use surveys:
– 1998 – open 24 hour calendar of activities – 2002 :
• structured questionnaire• subsample of income and expenditures survey• 17,167 hhlds, 72,600 individuals• NTA work
– 2009
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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1) Identify time spent in non-market productive activities
1) Household maintainance
Food preparation
Laundry
Home maintainance and repairs
Hhld management
Purchases
Grounds care
2) Child care*
3) Care for the disabled*
4) Community work
5) Interhousehold transfers
* Multitasking not included
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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12 17 22 27 32 37 42 47 52 57 62 67 72 77 82 87 92 970
5
10
15
20
25Age profiles of time use, by main activities
Free time Learning time Committed time Contracted time Personal time
Age
Hou
rs p
er d
ay
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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12 18 24 30 36 42 48 54 60 66 72 78 84 90 960
5
10
15
20
25
Males
Personal time Contracted time Committed timeLearning time Free time
Age
Hou
rs p
er d
ay
12 18 24 30 36 42 48 54 60 66 72 78 84 90 960
5
10
15
20
25
Females
Personal time Contracted time Committed timeLearning time Free time
Age
Hou
rs p
er d
ay
Age profiles of time use, classified by main activities and sex
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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12 18 24 30 36 42 48 54 60 66 72 78 84 90 9601234567
Number of hours spent on contrac-ted time, by age and sex
Male Female
12 18 24 30 36 42 48 54 60 66 72 78 84 90 9601234567
Number of hours spent on commi-tted time, by age and sex
Male Female
Men WomenContracted 16 years, 6days 4 years, 5 months
and 2 daysCommitted 5 years and 22 days 18 years, 1 month
and 4 days
If living e0 they would spend:
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Determine the age shapes of production, consumption and transfers
12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 88 92 96
-2500
-2000
-1500
-1000
-500
0
Outflow of own household per year, by age and type of ac-tivity
Household Maintainance Care for the disabled Child care
Total time for Own Household
Hou
rs p
er y
ear
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Determine the age shapes of production, consumption and transfers
• Determined age structure from sample
• Estimated regressions to calculate weights
• Do you have to recalculate so weights add to 1?
1 4 7 10 13 16 19 22 25 28
-150
-100
-50
0
50
100
150
200
250
300
350
Inflow of time use for child care, by age
Hou
rs p
er y
ear
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Determine the age shapes of production, consumption and transfers
• Sample has age structure
• BUT• I estimated from the
sample
1 9 17 25 33 41 49 57 65 73 81 89 97-500
0
500
1000
1500
2000
2500
3000
Inflows of Time Care for the Disabled, by Age
Hou
rs p
er y
ear
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Determine the age shapes of production, consumption and transfers
0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 88 92 96
-2000
-1000
0
1000
2000
3000
4000
5000
Inflows, Outflows and Net Intra-Household Time Transfers, Male and Female
Male inflow Female inflow Male outlow Female outlow Male netFemale net
Hou
rs p
er y
ear
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Impute a wage
lnW=Xb+eWhere X:
- Education 2
- Age 2
- Interaction of education and ageSeparate regressions for men and for women, starting from
age 12- Can’t get past R2 of 15.35 for men and 19.57 for women- Those who had a salary, used it, otherwise it was
predicted
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Impute a wagePredicted Non predicted Total
Male 42 58 100%
Female 60*** 40 100%
Total 51 49 100%
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Impute a wage
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 950
1
2
3
4
5
6
Age distribution of imputed wage values, by whether sa-lary was imputed or not
Male not predicted Female not predicted Male predicted Female predicted
Age
Perc
enta
ge
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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• Estimates over the lifetime:• Childcare -$13, 473,523• Care for the disabled $548,538,361• Household management $2’028,792,799
1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91-10000000
0
10000000
20000000
30000000
40000000
50000000
Estimates of annual intra-household inflows, by age (in Mexican pesos)
Childcare Care for the disabled Household maintenanceTotal Intrahousehold inflows
AgeAnn
ual i
ntra
hous
ehol
d tr
ansf
er
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Impute a wage and estimate a monetary value
1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89
-40000000
-30000000
-20000000
-10000000
0
10000000
20000000
30000000
40000000
50000000
Annual intrahousehold transfers, by age (in Mexican pesos)
Inflow Outflow Net
Age
Mex
ican
pes
os
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Conclusions
• Transfers for household maintenance most important, followed by care for the disabled
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Challenges and looking ahead
• In the estimation of time spent in non-market activities:– Multitasking: Test sensitivity to its inclusion– Smoothing:
• How to do it better, in general• How to do it without affecting 24hour distribution
– What happens when hours don’t add up to 24 hours?
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Challenges and looking ahead
• For the imputation of wages:1) Improve estimation of opportunity cost method
• Sensitivity test of imputed and non-imputed2) Do and compare with estimation of replacement
cost:Can both use a common wage or detailed salaries
• What happens in the case of community transfers?• Caregivers in old age?
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Limitations
• Care for the disabled different from care for the elderly? What do we really want to measure?
Basic care 48.1
Instrumental care 12.2
Economic help, 25.0
Transportation, errands, 11.8
Does not receive, or only emotional, 4.7
Estela Rivero – Estimating the monetary value of non-market labor in Mexico
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Looking even more ahead
• What has happened in 1998 – 2002?– Important changes in women’s labor force
participation, linked to intra-household and educational investments, for example?
Estela Rivero – Estimating the monetary value of non-market labor in Mexico