Time-Use Measurement and Research Report of a Workshop (2000) / Chapter Skim
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3 Conceptual Issues
3 Conceptual Issues
Pages 15-25
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From page 15... ...
Market work usually is meant to refer to work done for pay. Yet, as workshop participants discussed, not all time spent at "work" is devoted to job-related activities.
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From page 16... ...
, time spent at work gave respondents more satisfaction than time spent at many nonmarket and leisure activities, suggesting that time spent at work may not be all disutility indeed, it may not be "work.") Similarly, individuals may receive direct benefits from nonmarket work activities.
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From page 17... ...
Extrinsic rewards are the results or products of activities that produce future utility or satisfaction. For example, market work has extrinsic rewards because a worker receives income that is used for future consumption; similarly, doing laundry has extrinsic rewards of producing clean sheets.
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Household production theory assumes that households engage in productive activities that use as inputs market goods and services, the time of household members, and household capital stock. These inputs are used either to produce satisfaction or utility directly or to produce other goods and services that in turn produce future utility or satisfaction.2 The theory covers a wide range of goods and services produced by the household cleaning, cooking, caring for children and other relatives, recreation, procreation, and education, to name a few.
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From page 19... ...
are almost always extremely difficult to assess. One way time-use data and household production theory have been used together is to try to understand how parental time spent with children affects a child's outcomes.
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From page 20... ...
VALUATION OF HOUSEHOLD PRODUCTION AND TIME USE A primary conceptual issue in measuring nonmarket output of households is in identifying the nonmarket outputs, that is, identifying the output of a nonmarket activity as a production activity rather than a consumption activity. Some commodities are easily identified, such as a home-cooked meal, which has a clear input and a measurable output.
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From page 21... ...
However, valuing the labor time used to produce a commodity is a difficult task that requires making assumptions about an individual's value of time spent in nonmarket activities. There are two general methods for valuing time spent in nonmarket and leisure activities: the opportunity cost approach and the market cost approach.
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From page 22... ...
Nonmarket time spent taking out the garbage may have process costs while market work may have process benefits. If the wage rate is used to value the time spent in both types of activities, it implicitly assumes the process benefits for both activities (and across all other activities)
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From page 23... ...
One method for measuring time spent in joint activities is to count an hour spent jointly doing two activities as two hours. That is, jointly folding laundry and watching television for an hour would be measured as an hour of folding laundry and an hour of watching television.
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From page 24... ...
This method computes the total amount of time a demographically defined group of people spend their time, on average, and assigns an hour oftime spent by an individual jointly doing the activity on the basis of the proportion of the population totals. For example, if teenage girls spend 10 hours a week only on the phone and 20 hours a week only watching television, then 9 hours jointly spent talking on the phone while watching television would be allocated as 3 hours on the phone and 6 hours watching television.
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From page 25... ...
This approach would use either the value of the products for extrinsically valuable activities or the subjective value of the time for intrinsically valuable activities. This approach might be a useful framework for allocating simultaneous time use, particularly when integrated with the national income and product accounts.
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