Improving the measurement of the contribution of women to the economy: Estimates of gross domestic product by gender

This paper employs a novel approach for estimating gross domestic product (GDP) by gender based on administrative microfiles. GDP is the most common measure of production used for economic analysis, and it is designed to measure the value of production occurring in Canada. However, it is focused on activities outside the home and statements about differences in contributions to total production need to be interpreted with caution because measurement based on GDP will tend to overstate men’s contributions and understate women’s contributions due to differences in work done in the home. In the current literature on estimating GDP by gender, women’s and men’s contributions to GDP are allocated based on average wages. This assumes that all components of GDP (capital income, mixed income and labour income) are allocated proportionally to labour compensation. This study uses production-unit-level data to allocate the capital and mixed income components of GDP based on firm ownership, providing a more complete picture of women’s contributions to the market economy. The study finds that from 2008 to 2018, women’s contribution to Canadian GDP increased from 25.7% to 28.5%. Moreover, the paper illustrates important differences in the share of GDP attributable to men and women across industries and provinces and territories. Men’s share of GDP is highest in the construction and agriculture, forestry, fishing, hunting and trapping industries, while women’s share of GDP is highest in public sector industries (health, education, public administration).