Why is a paid domestic worker's wage included in GDP but a similar household service performed by a homemaker is not?

Correct answer: Because the homemaker's service is not a market transaction

GDP generally records goods and services that are produced for market exchange and have an observable monetary value. A paid domestic worker provides a service that is bought by the household, so the wage is recorded as expenditure and income. A homemaker may provide an equally valuable unpaid service, but there is no market transaction or recorded price. Consequently, national accounts usually exclude it, even though its welfare value is real.