Gender in the Economy Notes 9/8 & 9/10
Gender in the Economy Notes 9/8 & 9/10 Econ 211-003
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This 4 page Class Notes was uploaded by Austin Notetaker on Sunday September 27, 2015. The Class Notes belongs to Econ 211-003 at Colorado State University taught by Christina Curley in Summer 2015. Since its upload, it has received 59 views. For similar materials see Gender in the Economy in Economcs at Colorado State University.
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Date Created: 09/27/15
Gender in the Economy Notes from 98 910 and 917 The Family as an economic Unit Neoclassical Economics 0 Assumes that humans are rational selfinterested and want to maximize their utility happiness 0 In some cases people want to maximize family wellbeing not just for the individual 0 Economists still see family as a singleminded unit 0 Obviously families aren t formed solely for economic benefit but this chapter is focusing on the division of labor in married couples Simple Neoclassical Model 0 Specialization amp Exchange 0 Neoclassical assumptions about families Division of labor Adults are rational and informed in their decision making They make decisions to maximize utility of family Select the best combination of things to buy according to income Decide how time is spent l market labor for income I time spent at home either housework or leisure 00000 0 Comparative advantage 0 Deciding who works the majority of the time and who stays home the majority of the time Q The person with the comparative advantage is the one who would be giving up less income by staying at home I lower opportunity cost 0 Whoever has the advantage does not mean they re better or worse at something 0 However it is frequently the case that women have the advantage to stay at home 0 Men and women are raised differently it often leads to different training and ambition and expectations 0 The wagegap might contribute to the decision for a woman to remain at home 0 Circular reasoning Women raised to specialize in housework because they have the advantage but they really have the advantage because they re raised to specialize in it Q Gains to Specialization amp Exchange 0 Couples try to achieve the combo of market goods and home goods in the most efficient way 0 Many ways this can be achieved Both partners could work full time and pay for all home goods and childcare 0 Depending on the situation it might be best if the person with the comparative advantage stays home 0 Traditional family is less common in today s society 0 Families where both partners work is increasing in popularity 0 Direction of Causality gains to traditional family division of labor are decreasing l rising level of education for women I marriage rates are lower l average age of first marriage is increasing 0 Disadvantages of Specialization Division of labor in market and household 0 Genderbased division of labor is not always preferred 0 1 Sharing of housework l assumption that women always have the advantage to stay home is wrong I Housework or any work provides disutility l Leisure housework is not leisure time Q 2 Life cycle changes Comparative advantage I Value of home production increases during the childrearing period I Before having children women may be better off pursuing a career I Time out of the labor market lowers wages and opportunity upon returning 0 3 Costs of Independence I If one partner becomes unemployed there is no income if the other partner has chosen to stay at home I if the marriage ends the partner who has been staying at home is at a disadvantage O 4 Tastes and bargaining power I couples might disagree on how to spend funds I one partner s preference might carry more weight 0 5 Domestic Violence l specialization as a homemaker limits opportunities for anyone to get out of abusive situations 0 Other advantages of familydomestic partnership l Certain advantages does not require the couple to divide labor or specialize O 1Economics of scale I exist when an increase in the scale of operation of a productive unit can result in an increased output at a decreasing incremental cost I Family 0 Housing for two people is usually cheaper than separate housing Notes from 910 0 Meal for two does not take twice as long to cook as a meal for one Q 2 Public goods I consumption or use of a public good by a person does not decrease its value or usage for another person Public Radio 0 3 Externalities in Consumption l occurs when the use of a goodservice by one partner affects the wellbeing of the other panner Q Can be positive or negativeCookies smoking O 4 Marriagespecific Investments l skills and knowledge that are developed while being married are more valuable in the marriage than outside the marriage Knowing someone s favorite food or color 0 5 Risk Pooling I If one partner becomes unemployed they can rely on the other for income 0 6 Institutional Advantages l health insurance pensions social security 0 Nonmarket Work 0 Economists traditionally have focused on measurable market work However a lot of work is performed outside the market without pay 0 Household work and Volunteer work Q How to estimate l Unpaid so it is not recorded I Surveys Different samples information collected in various ways I American Time Use Survey ATUS Time diary where respondents record what they do during specific time blocks 0 Housework and Childcare 0 Average time spent on housework and childcare per week I Husbands 174 hours I Wives 285 hours 0 Comparison I Married women spend an additional 10 hours I Married men spend an additional 5 hours O Housewives typically spend 43 hours per week on unpaid labor 0 Married men with employed wives spend 179 hours 0 Married men with housewives spend 165 0 Over time wives housework has been decreasing since the 1960 s while husbands has increased a little bit I Reasons smaller families better technology 0 Childcare l average hours spent on before schoolage time is not varied much between working and non working parents 0 Volunteer Work I Gender difference women volunteer more I Studies have indicated that women are slightly more altruistic than men 0 Estimating Value of Nonmarket Production 0 GDP Gross Domestic Product Total money value of all goods amp services produced by a country in a single year I Used to measure the wealth of a country I Only includes market activity not home