Factoring the Services of a Homemaker in GDP

Last night in my Macro Economic/Calculus class we discussed how the services of a homemaker are NOT factored in the Gross Domestic Product figure. Gross Domestic Product is the total value of goods and services produced for consumers within the U.S. The strange part was that if we paid someone to watch our children that service is included in the GDP, but if we watched our own children that service is NOT included in the GDP. As we further discussed this topic I wondered what were the unspent costs of the services produced by homemakers. I did a little research on the topic and found some very interesting information.

Here is a general sampling of costs to replace a homemaker's services.

Since the GDP and economic statistics do not include homemakers as part of the labor force or as gainfully employed is a serious defect in economic analysis. As you can see homemakers work TWICE as many hours as the typical US employee. It is even more incredible to see that actually staying at home is not only good for your family's well being, but it is financially an excellent idea. Based on the Americans average income, most households could save MORE money if there was a homemaker than if both parents worked.

Look below at your state's median household income. This part is just an interesting table of information.

State Rank
Median household income (2006 dollars)
1 New Jersey 66,752
2 Maryland 63,082
3 Hawaii 61,005
4 Connecticut 60,551
5 New Hampshire 60,411
6 Alaska 57,071
7 Massachusetts 56,592
8 Minnesota 56,102
9 Utah 55,619
10 Virginia 55,368
11 California 54,385
12 Colorado 53,900
13 Washington 53,515
14 Delaware 52,676
15 Rhode Island 52,421
16 Vermont 52,174
17 Nevada 51,036
18 Illinois 49,328
19 Wisconsin 48,903
20 Nebraska 48,820
21 New York 48,472
22Georgia 48,388
23 Pennsylvania 48,148
24 Iowa 48,075
25 Michigan 48,043

United States national median ($ 48,023)

26 District of Columbia 47,473
27 Arizona 46,693
28 Wyoming 46,613
29 Oregon 46,349
30 Idaho 45,919
31 Ohio 45,776
32 Maine 45,503
33 Florida 45,038
34 South Dakota 44,996
35 Indiana 44,618
36 Missouri 44,487
37 Kansas 44,478
38 Texas 43,044
39 North Dakota 42,311
40 North Carolina 41,616
41 Tennessee 40,696
42 South Carolina 40,583
43 New Mexico 40,126
44 Montana 39,821
45 Oklahoma 38,859
46 Kentucky 38,694
47 Alabama 38,160
48 West Virginia 38,029
49 Louisiana 37,472
50 Arkansas 37,458
51 Mississippi 34,343

Source: Adapted from Henne, L. (1999). At home parent's survival guide. Baby Talk, vol. 64, no. 4, pp. 33-34.