Family2 鲍哈斯劳动经济学 英文ppt.pdf

ECONOMICS OFTHE FAMILY Jisoo Hwang 2014 Fall Economics of the Family 2 ?So far, we have studied models based on the optimizing behavior of an individual. ?Family choices –whether to marry, whom to marry with, whether to have children, how much to invest in a child’s education, whether both parents should work –are critical economic decisions. ?Family economics applies basic economic concepts such as production, division of labor, distribution, and decision making to the study of the family. Economics of the Family 3 ?Household Production ?Marriage Market ?Fertility Reference: Borjas(4 thedition) chapter on labor supply. Household Production 4 Source: KTUS 2004 Housework Time of Husband and Wife, Korea 5 Household Production 6 ?An economic definition of marriage: long-term partnership for the purpose of joint production, joint consumption, investment, and risk- sharing ?Household production function: how much household output household members can generate for any given allocation of time. ?Examples of “goods” jointly produced and/or consumed by the household ?Children ?Cooking ?Dwelling ?Companionship Specialization and Exchange 7 ?Central question: whydo some household members specialize in the market sector and others in the household sector? ?Setup and assumptions: ?2-person, 2-goods household ?Heterogeneous individuals: different abilities in producing “home” and “market” goods. Each has different marginal rate of substitution (MRS) in production between the 2 goods. ?Home goods and market goods are not perfect substitutes. 8 Home Goods, $ Market Goods, $ Budget lines of Blue and Red when single. Setup: ?Blue and Red each has 10 hours a day to allocate to market or household production. 200 150 250 100 Value per hour Blue Red Atmarket $20 $15 At home $10 $25 9 Home Goods, $ Market Goods, $ 350 Y 350 200 150 250 100 ? Blue and Red form a household. What is their production possibility frontier? ?? At H, Blue and Red both all