household production ; marketization ; structural transformation
Abstract:
We provide evidence on household and market production in 36 countries since 1960. On
average the household sector accounts for almost half of total hours worked. As GDP per
capita increases, the employment share of household production in total hours worked initially declines and then hardly changes while the employment shares of market goods and
services decrease and increase. Estimating the value added of household production yields
similar patterns. Labor productivity of household production is lower than and positively
correlated with that in the market. These findings can be used as an input into quantitative
work involving household production.
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