Household Production and Consumption in Finland 2001

More documents

Recommendations

Info

In the period from 1990 to 2001, the share of labour in household production has decreased and the share of fixed capital consumption has increased by a couple of percentage points. This might suggest that households have invested in machinery and equipment in order to reduce the amount of unpaid work. The figures are not fully comparable, however. In 2001, the household capital also included semi-durable goods, which in 1990 were placed under the heading of intermediate consumption. There are also other differences in how purchased products are divided between intermediate consumption, capital goods and final consumption goods. In 1990, taxes and subsidies were not taken into account. When the figures for 2001 are so revised that semi-durable goods are added to intermediate consumption and the corresponding reduction is made to the consumption of fixed capital, the share of intermediate consumption rises to 22 per cent and the consumption of fixed capital drops back to 3 per cent. The structure of production is probably quite slow to change because novel household appliances that radically reduce the amount of unpaid work do not appear in the market very often. Examples of such appliances are the automatic washing machine, which began to gain ground in the 1970s, and the microwave oven some ten years later. Another factor contributing to the slow pace of change is that people are slow to change their habits and routines. Sometimes it may take a whole generation for new customs to develop. The increasing use of purchased services might be the next major step towards a reduced level of unpaid work. In 2001, such services still had only marginal significance (Varjonen et al. 2005). 5.2 Household production by principal function Providing housing is the biggest single function in households. This may reflect the need of solid housing in Finland’s harsh weather. Also, one in four households have a summer cottage as secondary dwelling, many of which have lately been equipped so that they can be used all year round (Melasniemi-Uutela 2004). The second biggest function is the production of meals and snacks. Clothing, care and volunteer work each amount to no more than around one-fifth of production in the former two categories, and the care of pets is the smallest function. Compared to 1980, the provision of meals and snacks as a proportion of total household production has decreased, while the share of housing has increased (Varjonen & Aalto 2005). The total output of housing services is pushed up by the consumption of fixed capital (depreciation of housing as well as home furnishings and equipment) and intermediate consumption, a large proportion of which consists of rents paid, repairs and heating. Care of children and adults seems to account for a relatively modest part of total household production if considered against the media attention it attracts. However, the true value of care is greater than indicated by the figures shown here since only childcare and care of adults reported as a primary activity are included. The inclusion of care as a secondary activity would double the value of output. Moreover, the care of elderly parents who live in their own households is defined as “helping National Consumer Research Centre Statistics Finland 35
Figure 2. Household production by principal function Million euros 40,000 35,000 30,000 25,000 Intermediate consumption Consumption of fixed capital Net value added 20,000 15,000 10,000 5,000 0 Housing Meals Clothing Care Pets Volunteer work another household” and is shown in “volunteer work”. The discussion below looks at each principal function and the structure of production within these functions in closer detail. Housing SNA housing Housing consists of two items that are included in the national accounts – “housing services produced by owner-occupiers” and “own-account construction of dwellings” The output of housing services produced by owner-occupiers is determined in the core accounts on the basis of the market rents of corresponding dwellings. The value of these services was 10.7 billion euros. The output consists of three roughly equal items, i.e. net value added (41%), consumption of fixed capital (29%) and intermediate consumption (31%) (Figure 3). The figure for intermediate consumption includes items that belong to the maintenance and repair of buildings. Water charges are also included in the imputed rent in the core national accounts. Here, by contrast, part of the water charges are allocated to nutrition and washing clothes and roughly two-thirds to intermediate consumption in housing. The net mixed income (net value added) includes also real estate tax as well as wages paid by households (for a cleaner etc.) These items reduce the net mixed income when compared to the figures shown in the core national accounts. In the national accounts, interests on mortgages are included in income transfers paid. Owner-occupiers paid a total of 1,337 million euros in such interests. The output of own-account house construction at 1.8 billion euros consists primarily of intermediate consumption (65%) and to a lesser extent of net value added. 36 Statistics Finland National Consumer Research Centre
Page 1 and 2: Johanna Varjonen - Kristiina Aalto
Page 3 and 4: Tiedustelut - Förfrågningar - Inq
Page 5 and 6: On behalf of Statistics Finland and
Page 7 and 8: Contents Foreword . . . . . . . . .
Page 9 and 10: Figure 11 Shopping and travel relat
Page 11 and 12: Summary The Household Satellite Acc
Page 13 and 14: 2 Definitions and boundaries Househ
Page 15 and 16: 3 Methods and their development In
Page 17 and 18: 4 Household satellite account 2001
Page 19 and 20: Data from the National Accounts Nat
Page 21 and 22: Different studies have applied diff
Page 23 and 24: Table 3. Household capital goods, e
Page 25 and 26: 4.3 Principal functions of househol
Page 27 and 28: Travel and services related to hous
Page 29 and 30: food obtained through hunting, fish
Page 31 and 32: 5 Value ofhousehold production 5.1
Page 33 and 34: Structure ofproduction The focus in
Page 35: In other calculations shown in this
Page 39 and 40: In the Satellite Account, however,
Page 41 and 42: The eating of snacks has become inc
Page 43 and 44: Care ofchildren and adults Childcar
Page 45 and 46: Volunteer work As the name implies,
Page 47 and 48: Shopping, services and travel relat
Page 49 and 50: Table 9. Percentage of household ty
Page 51 and 52: Figure 14. SNA and non-SNA househol
Page 53 and 54: When looking at income quintiles, t
Page 55 and 56: Examples of final consumption produ
Page 57 and 58: 45 and families with schoolchildren
Page 59 and 60: Figure 23. Volunteer work by type o
Page 61 and 62: 6.3 Conclusions by type ofhousehold
Page 63 and 64: 7 Integrating household production
Page 65 and 66: Production for own use accounts for
Page 67 and 68: million euros From household sector
Page 69 and 70: 8 Discussion ofthe results and need
Page 71 and 72: Shopping, running errands and relat
Page 73 and 74: The data were well suited for the c
Page 75 and 76: however, it is always open to criti
Page 77 and 78: Holloway S, Short S, Tamplin S (200
Page 79 and 80: Varjonen J, Aalto K, Leskinen J (20
Page 81 and 82: Appendix 2. Principles for the clas
Page 83 and 84: Appenndix 3 (cont.) Principal Categ
Page 85 and 86: Appenndix 3 (cont.) Principal Categ
Page 87 and 88:
Appenndix 3 (cont.) Principal Categ
Page 89 and 90:
Appenndix 3 (cont.) Principal Categ
Page 91 and 92:
Appenndix 3 (cont.) Childcare and c
Page 93 and 94:
Appenndix 3 (cont.) Shopping and se
Page 95 and 96:
Appendix 5. Housing services produc
Page 97 and 98:
Appendix 7. Production and income g
Page 99 and 100:
Appendix 7 (cont.) PERSONS LIVING A
Page 101 and 102:
Appendix 7 (cont.) COUPLES, 45-64 y
Page 103 and 104:
Appendix 7 (cont.) SINGLE-PARENT FA
Page 105 and 106:
Appendix 7 (cont.) FAMILIES WITH CH
Page 107 and 108:
Appendix 7 (cont.) I-QUINTILE Milli
Page 109 and 110:
Appendix 7 (cont.) III-QUINTILE Mil
Page 111 and 112:
Appendix 7 (cont.) V-QUINTILE Milli
Page 113 and 114:
Appendix 9. Sequence of extended ac
Page 115 and 116:
Table 3. Household production as pa
Page 117:
Kuluttajatutkimuskeskus Konsumentfo
show all

Household Production and Consumption in Finland 2001

Create successful ePaper yourself

Delete template?

Save as template?