Uncovering consumption inequalities by integrating household activity patterns in UK input-output tables

Publication info
Review of Economics of the Household (2025)
Publication date
2025-07-24

Abstract

Understanding inequality through the lens of what households do – and the products and time their activities require – offers a richer perspective than conventional income-based inequality metrics. The study demonstrates this by analysing detailed consumption activities for the UK (2005, 2015) and their total (direct and upstream) use of household-produced products, market products, and human time. We expanded the national input-output tables with household production and detailed final consumption activities, the latter receiving product flows from market and household production activities. Household production outputs were preferentially valued by a market-equivalent value. For household types differentiated by income and composition, the tables include time use across the full 24-hour day, divided on 129 market production, 22 household production, and 33 consumption activities. The subsequent analyses provide a comprehensive understanding of households’ products and time use, with policy-relevant findings to promote more equitable consumption patterns. E.g., including the value of household production reduces inequality in consumption, although household production time and value are increasing with income. Furthermore, consumption activities differ in their total input requirements and in the degree to which these requirements vary by household type. Community activities (e.g., socialising) shows relatively equal uses of products across household types while the use in outgoing leisure (e.g., dining out) increases notably more with income. The upstream production time required for one minute of consumption increases notably with income across consumption activities, excluding basic consumption (e.g., sleeping). Considering household and market input requirements of distinct consumption activities can refine policies promoting more equitable consumption.

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