[Work in progress] Household Production Satellite Account as an integral component of estimating value added in the national economy
Keywords:
household production, input method, satellite accounts, time use survey, unpaid workAbstract
Aim: The concept of the satellite accounts consists of the integrated economic accounts providing total overview of all economic flows and stocks related to framework in the System National Accounts. The satellite accounts fulfill the gap in the public statistics and generate the accounts with details that have not been sufficiently represented in the core accounts. The primary aim of the article is to present the Household Production Satellite Account as an example with best practices and the structure of the integral extended accounts to the official statistics. This paper delivers the accounts of the main economic categories: value added, and GDP of household sector. The most valuable and expected effect is to generate the monetary value of domestic work, value and volume of the household production (market and non-market) in Poland, and the extended GDP model.
Methodology: This article describes the concept of satellite accounts according to ESA 2010. The analysis focuses on estimating the value of housework, intermediate consumption and capital (depreciation) in the Satellite Account of Household Production. The input method and the replacement cost method are used to calculate the value of unpaid labor, which is the main component of non-market household production. The specialist wage approach is used to estimate the value of housework according to market hourly rates for equivalent work.
Results: In 2023 the national accounts GDP was estimated on 3 410.1 billion PLN, so non-SNA household production accounted for 46.5 per cent of GDP. The value of domestic labor in Poland, was estimated on approx. 1 605.9 billion PLN, so it accounts for 79.9 per cent of non-market household production. If we work with the extended concept of economy that includes non-market household production, the results are rather different. In this case household production accounts for one-third or 34.6-36.5 per cent of the national economy (HPSA 2011, 2013, 2023).
Implications and recommendations: Such large production volumes, which are not included in the basic measures of the national economy, may significantly distort conclusions about households' conditions and their real impact on the economy. Eurostat and UNECE proposals recommend regularly conducting valuations of satellite accounts, such as the Household Production Satellite Account, as extended tables to national accounts. These provide sufficient information on the unobserved part of production (non-market production) for public statistics.
The satellite accounts are aligned with core accounts and do not overly burden the social statistics system, as they utilize data from social surveys and national accounts conducted by national statistics offices. They supplement missing information on sectors and fields of the economy that are not fully covered by core accounts.
Originality/value: The most anticipated outcome of the analysis is the estimation of the gross value added of non-market household production. The size and monetary valuation of household production, including domestic work, provide both informational and economic value, filling an existing gap in public statistics. Including non-market production activities of the household sector in the National Accounts serves as a source of information about the actual contribution of households to the economy. Activities such as childcare, care for the elderly and dependents, and other domestic work constitute a significant component not accounted for in the core accounts, and in GDP.
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