Estimating the monetary value of non- market labor in Mexico

1

Estimating the monetary value of non-market labor in Mexico

National Transfer Accounts Time Use and Gender Workshop

Estela RiveroJune 13-14, 2011

2

Objectives

• Accomplishments• Data• Results• Challenges and plans for the future

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

3

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

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


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

* Multitasking not included


6

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


7

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


8

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:


9

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


10


• 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


11


• 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


12


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


13

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


14

Impute a wagePredicted Non predicted Total

Male 42 58 100%

Female 60*** 40 100%

Total 51 49 100%


15

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


16

• 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


17

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


18

Conclusions

• Transfers for household maintenance most important, followed by care for the disabled


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?


20

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?


21

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


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?


Documents

Estimating the monetary value of non- market labor in Mexico