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THE ECONOMIC VALUE UNPAID HOUSEWORK and CHILD CARE in NOVA SCOTIA

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THE ECONOMIC VALUE UNPAID HOUSEWORK and CHILD CARE in NOVA SCOTIA MEASURING SUSTAINABLE DEVELOPMENT: ————————————————————————— APPLICATION OF THE GENUINE PROGRESS INDEX TO NOVA SCOTIA THE ECONOMIC VALUE of UNPAID HOUSEWORK and CHILD CARE in NOVA SCOTIA Ronald Colman, Ph.D MEASURING SUSTAINABLE DEVELOPMENT ————————————————————————— APPLICATION OF THE GENUINE PROGRESS INDEX TO NOVA SCOTIA MODULE TWO ——————— THE ECONOMIC VALUE of UNPAID HOUSEWORK and CHILD CARE in NOVA SCOTIA ——————— Prepared by Ronald Colman, Ph.D Halifax, Nova Scotia November, 1998 GPI Research Advisory Council for Unpaid Work Time Valuation Modules: Dr. Andrew Harvey, Department of Economics and Director, Time Use Research Program, Saint Mary’s University; President, International Association for Time Use Research Chris Jackson, Senior Analyst, Chief Statistician of Canada, Departmental Secretariat, Statistics Canada, Ottawa Dr. Marilyn Waring, Department of Social Policy and Social Work, Massey University, Auckland, New Zealand Hans Messinger, Director, Industry Measures and Analysis Division, Statistics Canada, Ottawa Andrew Maw, Assistant Director, Statistics Canada Regional Office, Halifax Dr. Martha MacDonald, Department of Economics, Saint Mary’s University Stella Lord, Researcher, Nova Scotia Advisory Council on the Status of Women Tom Pinfold, Vice-President, Gardner Pinfold Consulting Economists Dr. Carol Amaratunga, Executive Director, Maritime Centre of Excellence for Women’s Health, Marjorie Willison, Public Health Association of Nova Scotia Mark Anielski, Senior Fellow, Redefining Progress, Edmonton, Alberta Dr. Janet Eaton, Educational Consultant and Chief Researcher, Nova Scotia Network for Creative Change, David Amirault, Senior Economist and Director of Research, Atlantic Provinces Economic Council, John Odenthal, Senior Policy Analyst, Nova Scotia Department of Economic Development and Tourism Della Chaban, Annapolis County Women’s Coalition Jean MacPhee, Cape Breton Women’s Community Development Network ACKNOWLEDGEMENTS In preparing this sector of the Genuine Progress Index, GPI Atlantic wishes to acknowledge in particular the expert assistance and pioneering work in time use studies of Dr. Andrew Harvey, Department of Economics, Saint Mary’s University, Halifax, Director of the Time Use Research Program at the university, and President of the International Association of Time Use Research. In addition, GPI Atlantic has received continuous outstanding assistance on the time valuation issues from Hans Messinger, Director, Industry Measures and Analysis Division, Statistics Canada, from Chris Jackson, Office of the Chief Statistician of Canada, from the staff of the Statistics Canada Regional Office in Halifax under the direction of Andrew Maw, and from Doug Vaisey and Peter Webster of the research staff at the Saint Mary’s University library. Without their knowledge of sources, advice and cooperation, it would not have been possible to gather and analyze the data for this suite of time use indicators. Chris Jackson, who has been in the forefront of Statistics Canada’s work in valuing unpaid work and who has authored several leading articles and publications on the subject, kindly reviewed the draft of this report and provided many detailed and helpful comments, insights, corrections and suggestions, as did Dr. Harvey, Mr. Messinger, Mr Maw, Ms Lord, Dr. Amaratunga, Dr. MacDonald, Mr Pinfold, Ms Willison and Mr Mark Anielski. Special thanks are due to Ms Brigitte Neumann, Executive Director, Ms Stella Lord, chief researcher, and Chris Hansen, communications officer, at the Nova Scotia Advisory Council on the Status of Women, who have provided important administrative support for the project and undertaken the communication and dissemination of the information in this study. The author also gratefully acknowledges the research assistance of Colin Dodds, Pam Wimberly, Corey Kohn, Gregor MacAskill, Calista Rajasingham, Jennifer Scott and Cheryl Benjamin. Karen Lavin administered the project with patience and understanding; and Dennis Pearson, Cliff Esler and Don and Sara Winchell have contributed invaluable technical and design support. John Leon provided expert management and planning advice, and Ariel Harper contributed copy-editing skills, both generously giving their time on a voluntary basis. John Odenthal has kindly gone beyond his duties as project officer for the Nova Scotia government to give ongoing helpful advice, assistance and support to the work. Finally, and most importantly, the author deeply appreciates the understanding and support of Gwen and Dahlia Colman who have accepted the intrusion of the GPI into the household sphere with extraordinary patience and good humour. Needless to say, any errors or misinterpretations, and all viewpoints expressed, are the sole responsibility of the author and GPI Atlantic. GPI Atlantic gratefully acknowledges funding for this project provided by the: N. S. DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM and A.C.O.A. under the CANADA–NOVA SCOTIA COOPERATION AGREEMENT ON ECONOMIC DIVERSIFICATION, with cooperation and assistance from STATISTICS CANADA —————————————— This report is available from: GPI ATLANTIC, 20 Bonavista Drive, Boutilier’s Point, N.S. B0J 1G0 Price: $20; (discount available to non-profit groups). TABLE OF CONTENTS List of Charts and Tables _______________________________________________ 3 Forward _____________________________________________________________ 5 1. Limitations of the GDP as a Measure of Progress ................................................................ 5 2. The Development of Expanded Accounts............................................................................. 13 3. Nova Scotia GPI: Second Data Release and Work Plan....................................................... 16 4. What the GPI is Not.............................................................................................................. 18 PART I Measuring Household Production: Why, What, How? 1. Summary of Major Results ____________________________________________ 25 1.1 Women’s Share of Unpaid Household Work.................................................................. 26 1.2 Time Spent on Housework Unchanged Despite “Labour-Saving Devices..................... 27 2. Why Measure Unpaid Housework and Child Care ______________________ 23 2.1 The Contribution of Household Work to the Economy .................................................. 29 2.2 Correcting GDP Growth Estimates................................................................................. 30 2.3 Overcoming Gender Discrimination............................................................................... 32 2.3.1 Poverty Rates of Single Mothers ........................................................................... 35 2.4 Flexible Work Options and Other Policy Choices.......................................................... 37 2.5 Re-evaluating Consumption Habits ................................................................................ 38 2.6 Raising the Profile of Housework and Parenting............................................................ 40 3. Definitions and Methods of Valuation ___________________________________ 37 3.1 Defining Unpaid Housework and Child Care ................................................................. 43 3.2 Measuring Time Spent on Unpaid Work and its Monetary Value.................................. 46 3.3 Output Valuations of Household Production .................................................................. 47 PART II Housework and Child Care in Nova Scotia: Detailed Results and Valuations 4. Labour Inputs into Household Production _______________________________ 53 4.1 Hours of Unpaid Housework and Primary Child-Care in Nova Scotia .......................... 53 4.2 Unpaid Household Work Hours by Activity................................................................... 56 4.2.1 Trends in Domestic Chores.................................................................................... 57 4.2.2 Food Service Shifts from Household to Market..................................................... 60 4.2.3 Trends in Child Care.............................................................................................. 63 4.2.4 Trends in Shopping............................................................................................... 67 4.3 Unpaid Work Hours in the 1996 Census ........................................................................ 68 4.4 Rural / Urban Differences............................................................................................... 69 GENUINE PROGRESS INDEX: Measuring Sustainable Development 7 5. Women’s Share of Unpaid Household Work _____________________________ 70 5.1 Child Care and Housework Hours of Working Mothers................................................. 74 6. Household Capital ___________________________________________________ 75 6.1 Do “Labour-Saving” Devices Save Labour? .................................................................. 75 6.2 Earning Less and Spending More................................................................................... 83 6.3 Declining Household Size and Inefficiencies in the Household Economy..................... 89 6.4 Estimation of Total Household Capital in Nova Scotia .................................................. 94 7. Monetary Value of Unpaid Housework and Child Care ____________________ 91 7.1 Replicating the Value of Household Work for Other Provinces..................................... 98 7.2 Alternative
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