SNA-93 Framework

Workshop on Household Surveys and Measurement of Labour Force with Focus on Informal Economy

Maseru, Lesotho, 14-18 April 2008

Review and mapping of key gender issues

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Overview

• Introduction to SNA 93 Framework• Relevance of SNA 93 for labour statistics• SNA 93 production boundary• Gender implications for labour statistics• Improving labour statistics using SNA 93• SNA 93 treatment of Informal Sector• Beyond SNA 93: Informal Economy• Gender relevance of informal economy• Concluding remarks

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Introduction: SNA 93 Framework

• Comprehensive accounting framework• Based on a coherent, consistent and integrated set of

concepts, definitions, classifications and accounting rules• Allows for monitoring and analysis of economic activities • Focuses on transactors and transactions taking place

– Transactors: individual economic agents (institutional units) and institutional sectors

– Transactions: economic activities

• Basis for macro-economic analysis, decision-making and policy making

Why SNA 93 Framework matters

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Overall relevance of SNA 93 Framework

• Provides conceptual base for definitions – Economic activities– Economically active population

• Dominant framework for measuring work• Decisions on economic policies, distribution of

government expenditures to sectors of population and activities depend on SNA

• Activities not properly captured, not properly valued in terms of their contribution to economy

• Population group not properly captured, not properly taken into account in budget allocation

Why SNA 93 Framework matters

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Relevance of SNA 93 for labour statistics

Definition of economic activity

“The economically active population comprises all persons of either sex who furnish the supply of labour for the production of goods and services, as defined by the SNA 1993 during a specified period.”

Implications

• SNA Production boundary defines what activities are considered as economic and thus, who are considered to be economically active

• Guarantees consistency between activity concepts of employment statistics and production statistics

• But limits definition of work with implications for measurement of women’s full contribution to society

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SNA 93 Production Boundary

Defines what are productive and economic activities

Basic human activities, natural processes

Non-productive

Economic

All Activities

Productive

Non-economic

General production boundary

SNA production boundary

Rule: if the performance of an activity cannot be delegated to another without the same desired results/outcomes

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SNA 93 Production Boundary

ALL goods*

Productive activities

ALL services for sale, barter or in-kind pay

Some services forown-final consumption

Economic Non-Economic

Some services forown final consumption

Implications for production of labour statistics

Activities covered to determine economically active population

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SNA 93 Production Boundary

ALL goods*

Productive activities

ALL services for sale, barter or in-kind pay

Some services forown final consumption

Economic Non-Economic

Some services forown final consumption

Gender implications for labour statistics:

•Scope

•Measurement

Non-market activities often missed, in particular:Goods for own consumption, and some services included in SNA are often missed in data collection instruments

Services such as caring, cleaning cooking, transport not included in definition of work

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Scope of concept of Economic Activity

Economic Activities (SNA 93) scope for the measurement of Economically Active Population

Non-economic activities

Production of goods or services supplied to

other units

Production of goods*

for own final use

Production of services for own final consumption

Intended for sale, barter, in kind pay on the market

Provided free or at prices not economically significant, by government or non-profit institutions

Housing services by own-occupiers of dwellings

Domestic or personal services by paid staff

Domestic or personal services by unpaid household members

Market production

Non-market production

Includes intermediate inputs

(*) If quantity significant in relation to

total supply

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SNA 93: Non-market activities included/excluded

Included(if the amount of that good is quantitatively important in relation to the

total supply of that good in a country)Excluded

•Growing or gathering field crops, fruits and vegetables•Producing eggs, milk and food•Hunting animals and birds•Catching fish, crabs and shellfish•Cutting firewood and building poles•Collecting thatching and weaving materials•Burning charcoal•Mining slat•Cutting peat•Carrying water

•Threshing and milling grain•Making butter, ghee and cheese•Slaughtering livestock•Curing hides and skins•Preserving meat and fish•Making beer, wine and spirits•Crushing oil seeds•Weaving baskets and mats•Making clay pots and plates•Weaving textiles•Making furniture•Dressmaking and tailoring•Handicrafts made from non-primary products

•Constructing dwellings•Constructing farm buildings•Building boats and canoes•Clearing land for cultivation

•Cleaning, decorating and maintaining dwelling, including small repair•Cleaning, repairing household durables, vehicles or other goods•Preparing and serving meals•Caring for, training and instructing children•Caring for the sick, invalid or old people•Transporting household members or their goods

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Improving coverage of women’s work in labour statistics using SNA 93

1. Scope: Exclusion of services for own consumption– SNA 93 recognizes importance of these activities– SNA 93 recommends measurement and valuation of

production outside the SNA boundary through satellite accounts

– Production can be measured and valued on basis of inputs or outputs through• Time-use surveys• Household expenditure surveys• Household budget surveys • Other surveys collecting data on household

production

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Improving coverage of women’s work in labour statistics using SNA 93

2. Measurement: Fully implement SNA classification of economic activities, particularly those for own-consumption

• Review definition of work used in questionnaires

• Ensure questions are designed in such a way as to capture secondary activities, particularly where women are regarded as housewives, and among those engaged in agricultural activities

• Train interviewers on definition of work, including examples of economic activities for own-consumption that are to be captured, and to probe for secondary activities

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Improving coverage of women’s work in labour statistics using SNA 93

2. Measurement: Fully implement SNA classification of economic activities, particularly those for own-consumption

• Note that distinction between own-account production of goods and services may be complex and overlap

– Example: Preparation of a meal for immediate consumption is a service, but preparation of food for preservation is included in SNA economic activities.

• Activities likely to be excluded:

–Food conservation –Weaving textiles

–Making wine, beer, butter, cheese –Carrying water

–Production of household utensils, furnishings, clothing, footwear

–Fetching firewood

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Example: Pakistan –Labour Force Survey 2005-06

Captures both primary and secondary activities, including production of goods for own consumption…

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Example: Pakistan –Labour Force Survey 2005-06

Bottom note lists activities that count as work including:

• Home based activities:

– Agriculture– Milling & food processing– Handicrafts– Construction & major repairs

– Fetching water– Collecting firework– Other personal or

community work activities

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Example: Bangladesh

Restricted definition: Excludes own household economic activities

SNA definition: Includes own household economic activities

Female labour force participation rate by type of definitionBangladesh 1990-2000

0

20

40

60

80

100

1990-91 1995-96 1999-2000

SNA Definition National

SNA Definition Rural

SNA Definition Urban

Restricted Definition National

Restricted Definition Rural

Restricted Definition Urban

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Example: Bangladesh

Male labour force participation rate by type of definitionBangladesh 1990-2000

0

20

40

60

80

100

1990-91 1995-96 1999-2000

SNA Definition National

SNA Definition Rural

SNA Definition Urban

Restricted Definition National

Restricted Definition Rural

Restricted Definition Urban

Restricted definition: Excludes own household economic activities

SNA definition: Includes own household economic activities

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SNA 93 and Informal Sector

• SNA does not make a distinction between formal and informal sectors, but

• SNA 93 rev.1 recognizes importance of informal sector to the economy of many countries

• Recognizes need for a coherent set of concepts and definitions on informal sector consistent with overall SNA Framework to measure contribution of this sector to economy, employment, income generation, and for policy analysis and formulation

Background

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SNA 93 and Informal Sector

• Follows characterization of informal sector from resolution of 15th ICLS on statistics of employment in informal sector and work of Delhi Group on Informal Sector Statistics

• Defined as sub-sector of the SNA institutional sector ‘households’ (unincorporated household enterprises)

• Defined in terms of characteristics of production units/enterprises (enterprise approach) rather than characteristics of persons or their jobs (labour approach)

• Definition in terms of enterprises to provide link with SNA Framework

Treatment of Informal Sector

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Beyond SNA93: Informal Economy

• Need to capture and measure informality of employment, both in enterprises and in employment relations

• Thus, definition and measurement of informal sector is complemented with concept of informal employment, defined in terms of jobs

• Informal Economy includes both employment in informal sector and in informal jobs (informal employment)

• Economic activities to determine informal employment and employment in informal sector follow SNA 93 production boundary

From labour perspective

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Informal Economy: Gender relevance

Differences between women and men in informal economy:

• Women are disproportionately represented in informal economy, both informal sector and informal employment

• Reasons for turning to informal economy

• Access to resources

• Job segregation

• Characteristics of activities and businesses

• Working conditions

• Apparent greater disparities in income

• Exposure to violence and harassment

• Exposure to unsanitary conditions

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Informal Economy: Gender relevance

Special issues to consider

• Women are engaged in those informal activities that are

most difficult to capture and measure

– Home-based work, outwork, street vending

• Women are often engaged in second or multiple jobs,

especially in rural areas

• Women’s activities in informal sector may overlap with

non-market work and unpaid housework

• Women’ often carry work on small scale and on

household premises

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Concluding remarks

• SNA 93 provides cohesive framework for measuring women’s and men’s work, and provides links to informal sector measurement

• To improve labour statistics, including coverage of women’s economic contributions:

– Ensure compliance with SNA economic activities

– Consider measurement of services for own-consumption (SNA non-economic activities) through satellite accounts

– Focus on informal economy to capture informality of employment

Thank you!