Loss of Household Services in Damages
Loss of household services quantifies the unpaid work an injured person or decedent would have contributed to the household. It is valued using time-use survey data and local market wage rates for equivalent services such as childcare, home maintenance, meal preparation, and transportation.
The concept
Even when a person does not work outside the home, they produce economic value through unpaid labor. When injury or death reduces that labor, the economic loss is compensable in most jurisdictions.
Methodology
The economist uses time-use data (BLS American Time Use Survey) to establish typical hours by task, then applies local market wage rates for equivalent services (U.S. Bureau of Labor Statistics, n.d.). The projection is reduced to present value across the remaining life expectancy or worklife as applicable.
Scope of tasks
Typical categories include childcare, home maintenance, yard work, meal preparation, household management, and transportation. The scope reflects the household composition and the specific services the claimant actually performed.
Frequently Asked Questions
Is household services loss available in wrongful death cases?
In most jurisdictions, yes. It is often a substantial component of survivor damages.
How are wage rates selected?
Rates reflect local market costs for the equivalent service (e.g., childcare providers, landscapers, housekeepers), drawn from BLS OEWS (Occupational Employment and Wage Statistics) and similar sources.
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References
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