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Consumption Symposium: Broadening Our Understanding of Household Consumption and Measurement, September 22-23, 2021

What Can Time Use Data Tell Us about Home Production? (PDF)

Harley Frazis - Bureau of Labor Statistics - frazis.harley@bls.gov

This presentation examines the use of time diary data to supplement income and welfare measures with measures of the values of household production, using the paper "How Does Household Production Affect Measured Income Inequality?" (Frazis and Stewart 2011) as an example. Because the American Time Use Survey interviews only one person per household and collects only one diary per person, we have an incomplete picture of household production beyond the daily time frame, the best we can do is to estimate means of household production conditional on observable characteristics. We use a variation of Bonke's (1992) regression method to predict household production and extrapolate beyond a single day. Adding household production to money income reduces conventional measures of inequality. I discuss the potential importance of the extent to which the regression residual represents long-run or day-to-day variation in household production.

 

Last Modified Date: November 10, 2021