Not a bad deal for who?

This used to be quite common in Chile as well. I don't think it's that prevalent anymore, but it was very interesting to see the synergy some families built after decades of cohabiting with a "service person" (don't really know what word to use). I met a lot of people that widely regarded their service lady as a mother, they were pretty much raised with them around, so the bonds run deep. I have no doubt some times the compensation might not exactly be the best, but I have met quite a lot of people that are well happy with this arrangement.