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Structural Transformation, Marketization, and Household Production around the World

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Listed:
  • Benjamin Bridgman
  • Georg Duernecker
  • Berthold Herrendorf

    (Bureau of Economic Analysis)

Abstract

We provide evidence on the patterns of household production in 43 developing and developed countries. Household hours account on average for nearly half of the total hours worked in the household and the market. The vast majority of household hours produce services. As GDP per capita increases, average total hours worked and average household hours per working–age population decrease while average market hours increase (“marketization”); hours producing services increase their share in total hours (“structural transformation”). The decrease in household hours is mostly due to changes in housework (cleaning, cooking etc.) and marketization is mostly due to changes in women's hours. Within countries, more educated people work more in the market and less in the household. We also impute the labor productivity of household production for 34 countries of our sample. We find that it is positively correlated with and much lower than that in the market.
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Suggested Citation

  • Benjamin Bridgman & Georg Duernecker & Berthold Herrendorf, 2015. "Structural Transformation, Marketization, and Household Production around the World," BEA Working Papers 0128, Bureau of Economic Analysis.
  • Handle: RePEc:bea:wpaper:0128
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    File URL: https://www.bea.gov/papers/pdf/HouseholdProductionWorldCurrent.pdf
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    References listed on IDEAS

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    Cited by:

    1. repec:aea:aejmac:v:9:y:2017:i:3:p:116-46 is not listed on IDEAS
    2. Benjamin Bridgman, 2016. "Engines of Leisure," BEA Working Papers 0137, Bureau of Economic Analysis.
    3. Alessio Moro & Solmaz Moslehi & Satoshi Tanaka, 2017. "Does Home Production Drive Structural Transformation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(3), pages 116-146, July.
    4. L. Rachel Ngai & Barbara Petrongolo, 2017. "Gender Gaps and the Rise of the Service Economy," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 1-44, October.
    5. Benjamin Bridgman, 2018. "Is Productivity on Vacation? The Impact of the Digital Economy on the Value of Leisure," BEA Working Papers 0148, Bureau of Economic Analysis.
    6. repec:bpj:bejmac:v:18:y:2018:i:1:p:15:n:15 is not listed on IDEAS
    7. Bick, Alexander & Brüggemann, Bettina & Fuchs-Schündeln, Nicola, 2016. "Hours Worked in Europe and the US: New Data, New Answers," IZA Discussion Papers 10179, Institute for the Study of Labor (IZA).
    8. repec:fip:feddgm:00030 is not listed on IDEAS
    9. K.E. McConnell & Juha V. Siikamäki & V. Kerry Smith, 2017. "A Strategy for Evaluating the Opportunity Cost of Time Estimates from New Choice Margins," NBER Working Papers 23349, National Bureau of Economic Research, Inc.

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    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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