Valuation of the Care Economy in a Social Accounting Matrix for Uruguay

Abstract

Introduction

Traditional macroeconomic models fail to account for the economic and social value of domestic work and unpaid care activities. A Social Accounting Matrix (SAM) with a care and gender perspective is a valuable tool for policy analysis, as it through the application of Computable General Equilibrium models to simulate care policies and assess their effects on time allocation, household welfare, and the labor market.

Objective

To develop a gender-focused SAM for Uruguay, explicitly incorporating the care economy. The framework includes both paid and unpaid care activities, distinguishing between childcare, eldercare, and indirect care tasks.

Methodology

Unpaid care work is valued using a replacement cost approach. The resulting SAM comprises 31 market sectors and 6 non-market care sectors, further differentiating between public and private care provision.

Results

The findings indicate that unpaid work accounts for 27% of expanded Gross Domestic Product (GDP) and that total care work represents approximately 35% of total value added, constituting a substantial source of employment.

Conclusions

In a context where care has been recognized as an autonomous human right and where several countries are establishing national care systems, this study's results confirm the relevance of these activities in social  reproduction and in sustaining economic functioning.