劳动经济学7.ppt

劳动经济学7.ppt

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,Chapter7LaborSupply:

HouseholdProduction,theFamily,andtheLifeCycle,Contents,HouseholdproductionLife-cycleaspectsoflaborsupplyLaborsupplyoverthebusinesscycle,HouseholdProductionasNon-MarketWork,“Leisure”isreallyaformofworkProducehouseholdcommoditiesChildrearingCleaningthehouseCookingCountingbothmarketandnonmarketworkMarriedmenandwomenworksimilarhoursUnmarriedmenandwomenworksimilarhoursWomenallocatemorehourstothenonmarketsectorthanmen.,EvidenceofTimeBudgetData,PurposeofStudyingHouseholdProduction,Explainpatternsofhouseholdtimeallocation.TheallocationoftimebetweenhouseworkandmarketworkTheallocationoftimebetweenhousework,marketwork,andleisureThedivisionoflaborinahouseholdsFertilitybehavior?

TheTheoryofHouseholdProduction（Becker）,Objective:

Maximizegoodsconsumedbythehousehold（Z）Examples:

Raisingchildren,seeingamovieU=U（Z）Thehouseholdcommodityisproducedwithtwoinputs:

Householdproductiontime（H）purchasedgoodsorservices（X）Householdsarebothproductionandconsumptionunits.,HouseholdProductionFunction,Z=Z（X,H）,properties:

PositivemarginalproductsDiminishingmarginalproduct,DiminishingTRSSubstitutingtheproductionintoutilityfunctionyieldsU（Z）=U（Z（X,H）Thismayberepresentedbyanisoquant.Higherisoquantsgivehigherutility.,BudgetConstraint,PurchasedcommodityispaidforbyearningsfrommarketworkX=wNwhereNisworkinghoursHomeandmarkethourssatisfytimebudgetconstraintH+N=TOr,X+wH=wT,TheOptimalChoice,Theproblemisre-writtenas:

MaxU（Z（X,H）s.t.X+wH=wTOptimalchoice:

|MRTS|=w,TheProductionofChildCare,Figure7.1,ComparativeStaticAnalysis,IncomeeffectMarriageinstabilityMarketwagegoesupWomenseducationIncomeeffectsreducemarkettimeSubstitutioneffectsincreasemarkettimeTechnologyinhomeproductionEasiertosubstitutetimeforpurchasedgoodsUtilityisoquantbecomesflatterIncreasemarkettime,TheTripartiteChoice（Gronau）,MarketWork,HouseholdWorkandLeisureUtilitycomesfromconsuminggoods（X）andleisure（L）:

U（X,L）Xiscomposedoftwotypesofgoods:

Homeproduced（）Marketgoodspurchasedusingearnings（）Householdproductionfunction:

Budgetconstraintformarketgoods:

Timeconstraint:

H+N+L=T,ExplainingLSofMenandWomen,Stylizedfactonlaborsupply:

Atlowfemaleparticipation,substitutioneffecttendedtodominateincomeeffect.Athighparticipation,substitutioneffectfades,andTherelativesizeofthetwoeffectsofmenandwomenhasbeguntoconverge.Explanation:

Substitutionbetweenmarketandhouseholdworkiseasieratlowparticipation,andharderathighparticipation.Substitutionbetweenmarketworkandleisureismoredifficult.,Largevs.SmallSubstitutionEffectsAttendanttoaWageIncrease,Figure7.2,WorkandLeisure:

Pastvs.Present（Fogel）,1880（weekly）Adultmale:

Market:

66.5hrs;Household:

14hrs;Personalcare:

75hrs;Leisure:

12.5hrsAdultfemale:

Leisure:

10.5hrs1980（weekly）Adultmale:

Market:

44hrs;household:

13.8hrs;Personalcare:

68.2hrs;Leisure:

41.8hrsAdultfemale:

Leisure:

41.9hrsLifetimechangeEntermarket5yrslater;afterretirement11yrslongerDiscretionarytime:

225,000to298,500hrsLifetimeleisure:

43,800to176,100hrsLeisuresshare:

20%to60%,JointHHLaborSupplyDecisions,SingledecisionmodelCrosseffectsSpecializationBargainingmodelCooperativegameIndependentdecisionNon-cooperativegame,FamilyLaborSupply,UtilityfunctionforthefamilyBudgetconstraintOptimaldecisionintwodimensions:

LFparticipationHoursofworkBothareaffectedbythewagerateofthespouse.,EmpiricalEvidenceonCrossWageEffect,SupportsthenotionthatFamilylaborsupplyajointdecisionFemaleLSmoreresponsivetochangesinspouseswagerate.A10%increaseinthehusbandswagelowerstheLFPRofwomenby5.3ppts.reducesthehoursthatworkingwivesallocatetothelabormarketby1.7%.Thereislittleevidencethathusbandslaborsupplyisaffectedbythewifeswagerate.,SpecializationintheHousehold（Blauetal.）,Twopeople:

JackandJill;twogoods:

MarketgoodsandhomegoodsJackismoreproductiveatworkthanJillJillismoreproductiveathomethanJackBothhaveatimeconstraintof10hours,Derivingproductionpossibilityfrontiers,Jack:

Jill:

JackandJillsProductionSets,ChangesinMarketWagesorHomeProductivity,Homeproductivitygoesup.,Marketwagegoesup.,JointProductionPossibilitySetifJackandJillMarry,Jillspecializesinthehouseholdsector,Jackdivideshistime.,Jackspecializedinthelabormarket,Jilldivideshertime,DivisionofLaborintheHousehold,Jackspecializesinthemarketsector,Jillspecializesinthehouseholdsector.,DivisionofLaborintheHousehold,SomePoints,Specializationiscausedbydifferencesinmarketwagesand/orhomeproductivities,i.e.,comparativeadvantage.Ifrelativemarket/homeproductivityisthesame,thenwedonotexpecttoseespecialization.Themodelpredictsthatthespousewiththelowerwageorwithagreaterhomeproductivitytendstospecializeinhomeproduction.Thetheorydoesnotsaythatcustometc.areunimportant.,Fertility,PrincipleofPopulationbyMalthus（1798）Asincomerisesabovethesubsistence,peoplehavemorechildren.Becausetheresourceislimited,competitionforthescarceresourcesleadstowars,etc.Incomesfallbacktothesubsistencelevel.Fertilityiscontained.Theessence:

incomeeffects.Whataboutthepriceofchildren?

ModernEconomicAnalysisofFertility,Twocommodities:

Goods（X）andthenumberofchildren（N）Preferences:

botharenormal.Budgetconstraint:

IncomeIPriceofchildrenPn:

directcosts（diaper,education）foregoneearningsforthecaregiverPriceofgoodsPxGraph.,AsIncomeChanges,AsthePriceofChildrenChanges,EmpiricalFindingsonFertility,Correlatingmeasuresoffertilitytomeasuresofhouseholdincomeandofthepriceofhavingchildren.Thereisaverystrongrelationshipbetweenawomanswagerateandthenumberofchildren.A10%increaseinwagereducesthenumberofchildrenbyabout3%.Therelationshipbetweenincomeandthenumberofchildrenismuchweaker.A10%increaseinincomeincreasesthenumberofchildrenbylessthan0.4%.,FertilityChangesintheWorld,Life-CycleLaborSupply,Laborsupplyispartofalife-cycledecision-makingprocess.attendschoolearlyinlifeaccumulatewealthwhileinlaborforcemakeretirementdecisionslateinlifeSavingsfromlaborearningsareoftenrequiredtosustainlivingwhenoutoftheLF.Variationsinhealth,familycompositionandwagesprovideincentivesforpeopletovarythetimingoftheirlaborearnings.,StylizedFacts,Thetypicalage-earningsprofilehasapredictablepathlowwhenyoungriseasworkerages,peakatabout50remainstableordeclineslightlyafter50Hoursofworkandthewageratemovetogetherovertime.Explanation?

Life-CycleAllocationofTime,Figure7.5,ABasicFramework,Assumethelife-timeutilityfunctionisadditiveovertimeThelife-timebudgetconstraintis,PredictiononHours,ExogenoustoworkdecisionConcaveage-earningprofileWagelowatyoungandoldWagehighin30sand40sPrediction（givenreservationwage）:

Concentrateonworkactivitieswhenthewageishigh.Concentrateonleisureactivitieswhenthewageislow.,PredictiononParticipation,ComparemarketwageandreservationwageGivenreservationwageParticipatewhenmarketwageishigh.Leavewhenmarketwageislow.Life-cyclepatternofreservationwageThepresenceofsmallchildrenincreasesthereservationwageofmarriedwomen.,Evidence:

ParticipationbyAge,Evidence:

HoursbyAge,EmpiricalStudiesonHours,Atypicalstudyusesasampleofworkerstoestimatehowagivenworkeradjustshoursofworktowagechangesthatoccurastheworkerages.Manystudiesconcludethattheresponseofhoursofworktoevolutionarywagechangesissmall:

a10%increaseinthewageleadstoonlya1%increaseinhoursofwork,EmpiricalStudiesonLFPforMarriedWomen,Crosssectionaldata:

participationratesdeclineinthe20sandrisefromages30to50.Syntheticcohortanalysis:

Participationrisesineachdecadeoflife,withtheincreasesafterage30typicallybeingmuchgreaterthanthosefrom20to30.,LaborSupplyOvertheBusinessCycle,Addedworkereffect:

Asthemainbreadwinnerbecomesunemployed,familyincomefallsandthesecondaryworkersgetjobstomakeuptheloss.Laborforceparticipationrateofsecondaryworkershasacounter-cyclicaltrend.Discouragedworkereffect:

Manyunemployedworkersfinditalmostimpossibletofindjobsduringarecession,andsimplygiveup.Thelaborforceparticipationratehasapro-cyclicaleffect.,ImplicationsforUnemploymentRate,Theaddedworkereffectincreasestheunemploymentrate.Thediscouragedworkereffectdepressestheunemploymentrate.Empiricalevidence:

Thediscourageworkereffectisdominant.Officialunemploymentratedatamayunderstatetheunemploymentproblemduringsevererecession.,TheHiddenUnemployed,OfficialunemploymentrateintheUS:

5.4%in1990and7.3%in1992.Ifdiscouragedworkersweretobeincluded,thenumberswouldhavebeen:

6.1%in1990and8.2%in1992.Definition:

Onewhowantsworkbutdoesseekitbecausehe/shefeelsthatjobsareunavailable.Shouldthediscouragedworkerbeincluded?

Asthepriceofleisureislowduringrecession,aworkercanmakeanintertemporalsubstitution.,