labor_economics(7)

AddisonWesleyLongman,Inc.©2000Chapter7LaborSupply:HouseholdProduction,theFamily,andtheLifeCycleAddisonWesleyLongman,Inc.©2000Structure•Householdproduction–Householdworkvs.marketwork–Householdwork,marketworkandleisure–Specializationinthehousehold•Life-cycleaspectsoflaborsupply–Evolutionarywagechanges•Laborsupplyoverthebusinesscycle•FertilitydecisionsAddisonWesleyLongman,Inc.©2000HouseholdProductionasNon-MarketWork•“Leisure”isreallyaformofwork•Producehouseholdcommodities–Childrearing–Cleaningthehouse–Cooking•Countingbothmarketandnonmarketwork–Marriedmenandwomenworksimilarhours–Unmarriedmenandwomenworksimilarhours•Womenallocatemorehourstothenonmarketsectorthanmen.AddisonWesleyLongman,Inc.©2000EvidenceofTimeBudgetDataAddisonWesleyLongman,Inc.©2000PurposeofStudyingHouseholdProduction•Explainpatternsofhouseholdtimeallocation.–Theallocationoftimebetweenhouseworkandmarketwork–Theallocationoftimebetweenhousework,marketwork,andleisure–Thedivisionoflaborinahouseholds–Fertilitybehavior?AddisonWesleyLongman,Inc.©2000TheTheoryofHouseholdProduction(Becker)•Objective:–Maximizegoodsconsumedbythehousehold(Z)–Examples:Raisingchildren,seeingamovieU=U(Z)•Thehouseholdcommodityisproducedwithtwoinputs:–Householdproductiontime(H)–purchasedgoodsorservices(X)•Householdsarebothproductionandconsumptionunits.AddisonWesleyLongman,Inc.©2000HouseholdProductionFunction•Z=Z(X,H),properties:–Positivemarginalproducts–Diminishingmarginalproduct,–DiminishingTRS•Substitutingtheproductionintoutilityfunctionyields•U(Z)=U(Z(X,H))•Thismayberepresentedbyanisoquant.Higherisoquantsgivehigherutility.AddisonWesleyLongman,Inc.©2000HouseholdtimePurchasedgoodsorservicesZ0Z1AddisonWesleyLongman,Inc.©2000BudgetConstraint•PurchasedcommodityispaidforbyearningsfrommarketworkX=wNwhereNisworkinghours•HomeandmarkethourssatisfytimebudgetconstraintH+N=TAddisonWesleyLongman,Inc.©2000TheOptimalChoice•Theproblemisre-writtenas:•MaxU=U(Z(X,H))s.t.X+wH=wT•Optimalchoice:•|MRTS|=wwZZXHAddisonWesleyLongman,Inc.©2000TheProductionofChildCareFigure7.1AddisonWesleyLongman,Inc.©2000ComparativeStaticAnalysis?•Asunearnedincomegoesup–Incomeeffectreducesmarkettime.•Asmarketwagegoesup,–Incomeeffectreducesmarkettime.–Substitutioneffectincreasesmarkettime.•Productivityoftimeinhomeproduction()goesupduetotechnologicaladvance–Marketworktimedecreases.HZAddisonWesleyLongman,Inc.©2000TheTripartiteChoice(Gronau)•MarketWork,HouseholdWorkandLeisure•Utilitycomesfromconsuminggoods(X)andleisure(L):U(X,L)•Xiscomposedoftwotypesofgoods:–Homeproduced()–Marketgoodspurchasedusingearnings()•Householdproductionfunction:•Budgetconstraintformarketgoods:•Timeconstraint:H+N+L=THXMX)(HfXHwNXMAddisonWesleyLongman,Inc.©2000GraphicalIllustrationofOptimalChoice•Homeproductionfunction•Autarkysolution:,•homelabor,leisure,markettime0•Better-offtradelaborinthemarket:–Consumeat,produceat–leisuremarketlaborhomelabor,•Markettime,leisure,hometimedeterminedsimultaneously00'0CATB'0B0B0A0OLTL00OLNL0NTAddisonWesleyLongman,Inc.©2000ComparativeStatics:•Ariseinhometimeproductivity–shiftsthefrontierupward–Homeproductionisunchanged–Allocationbetweenleisureandmarkettimechanges.AddisonWesleyLongman,Inc.©2000WorkingathomeAddisonWesleyLongman,Inc.©2000ComparativeStaticAnalysis:WageChange•Twosubstitutioneffectsaswagerises•Substitutionbetweenhouseholdproductiontimeandtherest(marketplusleisure):–A0toA1–Reducehometime–Relativelyeasy•Substitutionbetweenleisureandmarkettime–B0toB1–Increaseleisuretime–RelativelyhardAddisonWesleyLongman,Inc.©2000AddisonWesleyLongman,Inc.©2000SpecializationintheHousehold(Blauetal.)•Twopeople:JackandJill;•twogoods:Marketgoodsandhomegoods•JackismoreproductiveatmarketthanJill•JillismoreproductiveathomethanJack•Bothhaveatimeconstraintof10hoursJackMJackMLX20JillMJillMLX15JackHJackHLX10JillHJillHLX2510JackHJackMLL10JillHJillMLLAddisonWesleyLongman,Inc.©2000Derivingproductionpossibilityfrontiers•Jack:•Jill:2002JackHJackMXX25035JillHJillMXX1010/20/JackHJackMXX1025/15/JillHJillMXXAddisonWesleyLongman,Inc.©2000JackandJill’sProductionSetsAddisonWesleyLongman,Inc.©2000ChangesinMarketWagesorHomeProductivityHomeproductivitygoesup.Marketwagegoesup.总的时间怎么会变？AddisonWesleyLongman,Inc.©2000JointProductionPossibilitySetifJackandJillMarryAddisonWesleyLongman,Inc.©2000Jillspecializesinthehouseholdsector,Jackdivideshistime.Jackspecializedinthelabormarket,JilldivideshertimeDivisionofLaborintheHouseholdAddisonWesleyLongman,Inc.©2000Jackspecializesinthemarketsector,Jillspecializesinthehouseholdsector.DivisionofLaborintheHouseholdAddisonWesleyLongman,Inc.©2000SomePoints•Specializationiscausedbydifferencesinmarketwagesand/orhomeproductivities,i.e.,comparativeadvantage.•Ifrelativemarket/homeproductivityisthesameforbothpeople,thenwedonotexpecttoseespecialization.•Themodelpredictsthatthespousewiththelowerwageorwithagreaterhomeproductivitytendstospecializeinhomeproduction.•Thetheorydoesnotsaythatcustometc.areunimportant.AddisonWesleyLongman,Inc.©2000AnincreaseinJack’smarketwagemaycauseJacktospecializeinthemarketsector.Factors