Household Production Theory Oleh: Dr. Ir. Hartoyo, M.Sc Departemen IKK - IPB
Ekonomi Keluarga -- Hartoyo
Outline:
Pendahuluan: Alokasi Waktu Work and Leisure: How the Household Spends its Time
Utility Function Time and Income Constraints Equilibrium
Ekonomi Keluarga -- Hartoyo
Pendahuluan
Ekonomi Keluarga -- Hartoyo
Weekly Hours Spent in Work and Leisure by Men and Women, Age 25-64, in the United States, 1965–1981
Ekonomi Keluarga -- Hartoyo
Average time in home production per week for married men and women Men
17.7
Women
29.8
Men spend 9 more hours per week in the labor market Sumber: Hersch and Stratton, Journal of Human Resources, Winter 2002.
Ekonomi Keluarga -- Hartoyo
Portion of change in adjusted annual hours of paid work attributable to behavioral and compositional factors Adjusted annual hours of paid work
Women
Men
2000
1,282
1,959
1980
773
1,954
Difference 2000-1980
509
5
Change due to shifts in characteristics
241
44
Change due to shifts in behavior
268
-39
Sumber: Sayer, Cohen, & Casper, 2003 Ekonomi Keluarga -- Hartoyo
2004 GDP per kapita GDP per kapita Nilai HP 1946 GDP per kapita GDP per kapita Nilai HP
Ekonomi Keluarga -- Hartoyo
(tanpa HP): US$39,925 (+HP) : US$50,410 : US$10,485 (26%) (tanpa HP): US$1,572 (+HP) : US$2,324 : US$752 (48%) Sumber: Landefeld (2005)
Work & Leisure: How the Household Spends its Time The work-leisure model of the household: • focus on the allocation decision with respects to the person’s time • Three components of the model: 1. A description of the person’s preference 2. A description of the household’s resources 3. A behavior relation describing the rule by which decisions are made Ekonomi Keluarga -- Hartoyo
The Utility Function
The household derived satisfaction from: 1. Purchased goods and services (C) 2. Produced goods and services (G) 3. Leisure time (L)
U = u (C, G, L) Assume: C and G are perfectly substituted
U = u (C + G, L) Ekonomi Keluarga -- Hartoyo
Goods C+G
T
A
(C+G)A
U1
U0
O Ekonomi Keluarga -- Hartoyo
LA
Leisure (L)
The Time Constraint
The available time devoted to: 1. Market work (M) 2. Household work (H) 3. Leisure time (L)
T=M+H+L
Ekonomi Keluarga -- Hartoyo
The Household Production Function
The household is bound by the time constraint and technology of the production function Household goods and services are produced by combining household members’ labor with other inputs Household production function: the relationship between time spent by the individual in household work activities and the quantity of the good and services produced Principle of diminishing of marginal productivity
G = g (H; X) Ekonomi Keluarga -- Hartoyo
Goods C+G R
GR P
GP
Q
GQ
O
HQ
Ekonomi Keluarga -- Hartoyo
HP
HR
Household Work (H)
Goods C+G R
GR
P
GP
T
Q
GQ
O Ekonomi Keluarga -- Hartoyo
LR
LP
LQ
Leisure (L)
Equilibrium in a Robinson Crusoe Household Goods (G)
T=H+L G = g (T-L; X)
T
P
GP
Q
GQ
U0 U1
O Ekonomi Keluarga -- Hartoyo
LP LQ
Leisure (L)
The Market Work Budget Constraint Y=E+V Where: Y = total income E = earning from employment (labor income) V = non-labor income
pC=Y=E+V p = the price index of market goods C = market goods and services
Ekonomi Keluarga -- Hartoyo
E=wM w = wage rate M = time spent on market work
pC=Y=E+V
pC=wM+V
Time Constraints
T = M + L or M = T - L pC=wM+V
pC=w(T–L)+V pC+wL=wT +V
Ekonomi Keluarga -- Hartoyo
Budget Constraint Market Goods (C)
(wT+V)/p
T
-(w/p) V/p
O Ekonomi Keluarga -- Hartoyo
Leisure (L)
Equilibrium in a Household with no household production Market Goods (C) (wT+V)/p
U2
Q
CQ
U1
T
U0 -(w/p) V/p
O Ekonomi Keluarga -- Hartoyo
MQ
Leisure (L)
Slope of budget constraint
( wT V ) p
T
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V p
wT p
w T p
The total household budget line Definition:
Is the locus of points representing maximum quantity of goods (either market or household) obtainable from each number of hours worked at either market or household work and non-labor income Behavioral rule: 1. The more is better so long as more is free 2. The household allocates time to market and to household works to maximize the quantity of goods derivable from each hour worked Ekonomi Keluarga -- Hartoyo
Suppose the household production function: 2
G = 40 H – 0.5 H
The price of market good (p) = $ 1/unit The wage rate (w) = $ 10/hour MP = 40 - H Slope = - 10 Ekonomi Keluarga -- Hartoyo
2
G = 40 H – 0.5 H
-w/p = 10
H
G
MP (gh)
0
0
0
1
39.5
39.5
2
78.0
38.5
3
115.5
37.5
.
.
.
.
.
.
29
739.5
11.5
30
750.0
10.5
31
759.5
9.5
.
.
.
.
.
.
Ekonomi Keluarga -- Hartoyo
Goods C+G
MP < w/p
C+GN
N
MP > w/p
T
V/p O
Ekonomi Keluarga -- Hartoyo
LN
Leisure (L)
Goods C+G
C+GR
U3
R
C+GN
U2 U1 N
T
V/p O
LR Ekonomi Keluarga -- Hartoyo
HN
Leisure (L)
Goods C+G U3 U2 U1 C+GN
N
C+GQ
Q
T
V/p O Ekonomi Keluarga -- Hartoyo
LN
LQ
Leisure (L)
Goods C+G U3 U2 U1 C+GN
N S
C+GS C+GQ
Q
T
V’/p V/p O
Ekonomi Keluarga -- Hartoyo
LN
LQ LS
Leisure (L)
Goods C+G C+GP C+GR C+GN’
P U4
U3 U N’ 2 U1
R
N
C+GN
T V’/p
V/p O
LR Ekonomi Keluarga -- Hartoyo
LP
HN HN’
Leisure (L)
Bagaimana pengaruh faktor-faktor berikut terhadap alokasi waktu RT? 1. Income 2. Wage rate 3. Specialization of function and the division of labor 4. Technical change 5. Preference 6. Household size and composition Ekonomi Keluarga -- Hartoyo
Teori Alokasi Waktu:
Keluarga terlibat dalam aktivitas pengalokasian sumberdaya untuk mencapai tujuannya. Tujuan: utility, satisfaction, or well-being Keluarga harus mengambil keputusan produksi dan konsumsi memanfaatkan sumberdaya waktu, barang dan jasa yang dibeli, serta barang modal yang ada dalam rumahtangga
Hipotesa Becker (1965, 1991):
Harga barang/jasa, biaya oportunitas (korbanan), dan teknologi produksi rmt akan menentukan kombinasi barang/jasa yang dikonsumsi dan penggunaan waktu. Preferensi rumahtangga aktivitas rumahtangga
Lovingood & Cullough, 1986:
Waktu & peralatan rmt input produksi rmt Pembelian peralatan rmt pembelian waktu ‘leisure’ dari ibu rmt Pemilikan alat rmt alokasi waktu
PR Diketahui: G = 12H-0,8H2 V = $20 w = $4/jam P = $2/unit
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Ditanyakan: 1.
2.
3.
Berapa jam alokasi waktu untuk pekerjaan rumah tangga (H) yang akan dicurahkan oleh ibu yang bekerja? Jika ibu mengalokasikan waktu untuk leisure sebanyak 10 jam per hari, berapa unit (G+C) yang bisa dikonsumsi? Jika upah naik menjadi $5/jam dan harga meningkat menjadi $3/unit, maka berapa alokasi waktu untuk pekerjaan rumah tangga?
Ekonomi Keluarga -- Hartoyo
