1. Estimating the monetary value of non-market labor in Mexico National Transfer Accounts Time Use and Gender Workshop Estela Rivero June 13-14, 2011 1

2. Objectives Accomplishments Data Results Challenges and plans for the future Estela Rivero – Estimating the monetary value of non-market labor in Mexico2

3. Accomplishments Donehawer, Lee and Mason: 1)Identify time spent in non-market productive activities by age and sex 2)Impute a wage 3)Determine the age shapes of production, consumption and transfers 3 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 wage Estela Rivero – Estimating the monetary value of non-market labor in Mexico

4. 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 4Estela Rivero – Estimating the monetary value of non-market labor in Mexico

5. 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 5 * Multitasking not included Estela Rivero – Estimating the monetary value of non-market labor in Mexico

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7. 7 Age profiles of time use, classified by main activities and sex Estela Rivero – Estimating the monetary value of non-market labor in Mexico

8. 8 MenWomen Contracted16 years, 6days4 years, 5 months and 2 days Committed5 years and 22 days18 years, 1 month and 4 days If living e0 they would spend: Estela Rivero – Estimating the monetary value of non-market labor in Mexico

9. Determine the age shapes of production, consumption and transfers 9Estela Rivero – Estimating the monetary value of non-market labor in Mexico

10. 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? 10Estela Rivero – Estimating the monetary value of non-market labor in Mexico

11. Determine the age shapes of production, consumption and transfers Sample has age structure BUT I estimated from the sample 11Estela Rivero – Estimating the monetary value of non-market labor in Mexico

12. Determine the age shapes of production, consumption and transfers 12Estela Rivero – Estimating the monetary value of non-market labor in Mexico

13. Impute a wage lnW=X  +  Where X: -Education 2 -Age 2 -Interaction of education and age Separate regressions for men and for women, starting from age 12 -Can’t get past R 2 of 15.35 for men and 19.57 for women -Those who had a salary, used it, otherwise it was predicted 13Estela Rivero – Estimating the monetary value of non-market labor in Mexico

14. Impute a wage PredictedNon predictedTotal Male4258100% Female60***40100% Total5149100% 14Estela Rivero – Estimating the monetary value of non-market labor in Mexico

15. Impute a wage 15Estela Rivero – Estimating the monetary value of non-market labor in Mexico

16. Estimates over the lifetime: Childcare -$13, 473,523 Care for the disabled $548,538,361 Household management $2’028,792,799 16Estela Rivero – Estimating the monetary value of non-market labor in Mexico

17. Impute a wage and estimate a monetary value 17Estela Rivero – Estimating the monetary value of non-market labor in Mexico

18. Conclusions Transfers for household maintenance most important, followed by care for the disabled 18Estela Rivero – Estimating the monetary value of non-market labor in Mexico

19. 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? 19Estela Rivero – Estimating the monetary value of non-market labor in Mexico

20. Challenges and looking ahead For the imputation of wages: 1)Improve estimation of opportunity cost method Sensitivity test of imputed and non-imputed 2) 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? 20Estela Rivero – Estimating the monetary value of non-market labor in Mexico

21. Limitations Care for the disabled different from care for the elderly? What do we really want to measure? 21Estela Rivero – Estimating the monetary value of non-market labor in Mexico

22. 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? 22Estela Rivero – Estimating the monetary value of non-market labor in Mexico