Towards a Gender- Inclusive GDP: Recommendations to the G20

Gross domestic product (GDP) is an imperfect measure of the economic size of a country as it excludes unpaid domestic and care work from its ambit. As such, the all-pervasive use of GDP in policy and popular discourse can create several issues. It could overestimate benefits of a policy if an associated increase in GDP is merely a transition from unpaid to paid work. It could also lead to an underestimation of the level of economic activity if a country relies more on unpaid household services, relative to others. More importantly, not valuing unpaid domestic work impacts women’s life outcomes as they face the disproportionate burden of this work. Without linking it to monetary value, unpaid domestic work is often seen as part of a woman’s ‘natural duties.’ Measurement, when accompanied by strong behavioural change efforts, can help show more widely that household chores are economic activities, and promote diverse participation in such activities. Including unpaid domestic and care work in GDP can also influence government policies towards providing adequate care facilities and time-saving infrastructure to fully serve the interests of women, whose effort subsidises the operation of markets. This policy briefa highlights the importance of including unpaid domestic and care work in GDP, outlines possible methodologies, and makes recommendations to the G20 countries on how to move towards a more gender- inclusive measure of GDP.