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Incorporating Estimates of Household Production of Non-Market Services into International Comparisons of Material Well-Being

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  • Nadim Ahmad
  • Seung-Hee Koh

Abstract

This paper reports on work undertaken within the Statistics Directorate to measure the value of household production of non-market services, in order to better compare material well-being across countries. The work is being conducted under the aegis of the National Accounts Working Party and as input into the broader OECD activity on Measuring Progress. It responds to the growing recognition of the need to place a greater emphasis on the development of statistics that focus on the household perspective. The study shows that at a national level the estimates are acutely sensitive to the value placed on labour used in producing these services. However, it also demonstrates that relatively robust cross-country comparisons are obtainable using estimates converted on a purchasing power parity basis. For China, for example, GDP per capita relative to the United States improves by 50% when all household production of non-market services is included. Indeed the study demonstrates that including these services is particularly significant for comparisons of 'richer' and ' poorer' countries... Cet article rend compte du travail réalisé au sein de la Direction des Statistiques pour mesurer la valeur des services non marchands produits par les ménages, dans le but d'améliorer la comparaison du bien-être matériel entre pays. Ce travail est accompli sous l'égide du Groupe de Travail sur la Comptabilité Nationale, et censé être incorporé à l'activité plus générale de mesure du progrès de l'OCDE. Il répond à la reconnaissance croissante du besoin de mettre l'accent sur le développement de statistiques centrées sur la perspective des ménages. Cette étude montre qu'au niveau national, les estimations sont extrêmement sensibles à la valeur attribuée au prix du travail accompli pour la production de ces services. Cependant, il démontre également que des comparaisons relativement robustes entre pays peuvent être obtenues en utilisant des estimations converties sur la base d'une parité de pouvoir d'achat. Pour la Chine par exemple, le PIB par habitant par rapport aux États-Unis est amélioré de 50% lorsque toute la production de services non marchands des ménages est inclue. L'étude démontre d'ailleurs qu'inclure ces services est particulièrement significatif dans les comparaisons entre pays "riches" et pays "pauvres"...

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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Statistics Working Papers with number 2011/7.

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Date of creation: 14 Oct 2011
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Handle: RePEc:oec:stdaaa:2011/7-en

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Cited by:
  1. Diewert, Erwin & Schreyer, Paul, 2013. "Household Production, Leisure and Living Standards," Economics working papers erwin_diewert-2013-15, Vancouver School of Economics, revised 03 Apr 2013.
  2. Vivien Procher & Nolan Ritter & Colin Vance, 2014. "Making Dough or Baking Dough? Spousal Housework Responsibilities in Germany, 1992-2011," Ruhr Economic Papers 0472, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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