Generalisation of NTA to unpaid household labour

EuroNTA workshop

October 29, 2010, Stockholm

Róbert I. Gál (gal@tarki.hu)

Marton Medgyesi (medgyesi@tarki.hu )

Structure of presentation:

* A research question

* Other related research questions

* Methodology problems to overcome

* Preliminary results: time transfers to children

Intergenerational transfers have become partially „socialized”: resource reallocation takes place between social generations, not family generations.

NTA covers full reallocation between social generations and partial reallocation between family generations (no intrahh and interhh time transfers and no familial interhh transfers)

Flows to opposite directions (from active age to children and to the elderly) could be asymmetrically affected.

A research question:

Is the proportion of full intrahousehold reallocation inflows to social reallocation inflows higher for children than for the elderly?

A research question

Cross-national differences in the level of „socialization” of inter-age resource reallocations

Gender differences in the rate of time transfers vs. tangible transfers

Related questions

1. What is work and what is not? - the 3rd person principle

2. How to value labour?- replacement cost (by wage of activity or wage of occupation)

(the problem of selection bias)- opportunity cost

3. Gross or net?Difference: taxes and the cost of work

Methodology problems to overcome

4. How to estimate the system of transfers of time?

- Time use survey gives information on time outflows but inflows are more difficult to capture- Some activities are time transfers directed to a specific person; other activities are time transfers to the entire household(residual method)(endogenity of age in the case of higher order children)

5. Overlaps- more people doing the same activity- one person doing more activities at the same time

6. Interhousehold time transfers

Methodology problems to overcome, contd.

The gross cost of raising children: the value of consumption expenses and time transfers (outflows)

consumption expenses time transferscouple 1 c 2.1 9.4couple 2 c 4.1 9.3couple 3+ c 5.3 15.51 parent 1 c 4.7 10.81 parent 2+ c 8.6 12.8other family 1c 1.0 4.1other family 2+ c 2.0 5.3total 2.9 8.3

Values in net monthly wages.