Lably
Skip to content

Unpaid work

Labor that does not receive any direct remuneration

  • 4 min read
  • 3 chapters
  • 1 lab on Lably

Learn it on Lably

The production boundary

The production boundary is the name given by economists to the imaginary line between unpaid work, which is not counted directly in the gross domestic product, and paid work that the GDP does count. Production boundary includes goods or services that are supplied to units other producers, including the production of goods or services used up in the process of producing such goods or services; and the "own-account production of housing services by owner-occupiers and of domestic and personal services produced by employing paid domestic staff", according to the 2001 OECD Economist Diane Coyle described how the digital revolution and the COVID-19 pandemic has increased debates on establishing the production boundary, which involves measuring 'true' productivity. Millions of volunteer hours of unpaid work contribute to free services that others consume via social media and Wikipedia in a new parallel economy. This unpaid work contributes a real monetary value to the digital platforms' owners that is included in the GDP, while all the unpaid work is on the wrong side of the production boundary and is therefore not counted.

Sign in to keep reading

2 more chapters are free with a Lably account.

More in Politics and economics