Women's Invisible Contribution: Quantifying the Economic Value of Women's Unpaid Care Activities in Turkey and Policy Options to Reduce Women's Care Burden

Abstract

Women, whether in employment or not, spend a significant amount of time in Turkey occupied in unpaid home-based care activities, providing care for children and the elderly in their families. Among OECD countries, the country ranks second in terms of the amount of time women spend on unpaid household chores and activities. This paper estimates the economic value of time women allocate in Turkey to direct care activities at home by using two main methodologies: (i) the opportunity cost method estimates the value of time using each woman’s potential earnings in the labor market, and (ii) the proxy good method calculates the value of time taking into account a constant fixed value of hourly earnings (either the minimum wage or the average wage of a social worker). The value of direct care, which constitutes a lower-bound for overall care activities of women, is estimated to be around 1.37-3.34 percent of GDP as of 2011. Using the opportunity cost of earnings methodology, the paper estimates the economic value of refocusing the time spent on care activities to employment to be 1.5 billion USD for working women and 4.8 billion USD for non-working women.