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Possible measurements of gross household product

As gross household product is not an official standardised form of measurement there a several ways that it can be measured. The variations of measurement are dependent on the definition of gross household product.

The most common method for estimating a country’s GHP is what is referred to as the ‘housekeeper wage’ approach. This involves estimating the monetary value of each households unpaid labour and then determining estimating the capital of each household. This ultimately allows for monetary value to be estimated regarding the cost that the work calculated would cost a household.

Alternative approaches include the ‘specialist wage approach'. This is calculated through determining the cost of hiring each individual specialist service to meet the work in the household. This can include cooking, laundry and gardening.

A third method of calculating gross household product calculates the opportunity cost of working from home. This looks at the monetary value the is sacrificed by working at home, and therefore the GHP figure is determined.

Whilst all these three methods to calculating GHP have merit, it is important to recognise that monetary value of household value may be less due to womens wagers consistently being of less value than of men. And therefore with women contributing predominantly to gross household product, GHP may be less of value compared to GDP.