Household Production Theory

Transkripsi

1 Household Production Theory Oleh: Dr. Ir. Hartoyo, M.Sc Departemen IKK - IPB

2 Outline: Pendahuluan: Alokasi Waktu Work and Leisure: How the Household Spends its Time Utility Function Time and Income Constraints Equilibrium

3 Pendahuluan

4 Weekly Hours Spent in Work and Leisure by Men and Women, Age 25-64, in the United States,

5 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.

6 Portion of change in adjusted annual hours of paid work attributable to behavioral and compositional factors Adjusted annual hours of paid work Women Men ,282 1, ,954 Difference Change due to shifts in characteristics Change due to shifts in behavior Sumber: Sayer, Cohen, & Casper, 2003

7 2004 GDP per kapita (tanpa HP): US$39,925 GDP per kapita (+HP) : US$50,410 Nilai HP : US$10,485 (26%) 1946 GDP per kapita (tanpa HP): US$1,572 GDP per kapita (+HP) : US$2,324 Nilai HP : US$752 (48%) Sumber: Landefeld (2005)

8 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

9 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)

10 Goods C + G T (C+G) A A U 1 U 0 O L A Leisure (L)

11 The Time Constraint The available time devoted to: 1. Market work (M) 2. Household work (H) 3. Leisure time (L) T = M + H + L

12 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)

13 Goods C + G G R R G P P G Q Q O H Q H P H R Household Work (H)

14 Goods C + G G R R G P P T G Q Q O L R L P L Q Leisure (L)

15 Equilibrium in a Robinson Crusoe Goods (G) Household T = H + L G = g (T-L; X) G P P T G Q Q U 0 U 1 O L P L Q Leisure (L)

16 The Market Work Budget Constraint Y = E + V Where: Y = total income E = earning from employment (labor income) V = non-labor income p C = Y = E + V p = the price index of market goods C = market goods and services

17 E = w M w = wage rate M = time spent on market work p C = Y = E + V p C = w M + V Time Constraints T = M + L or M = T - L p C = w M + V p C = w ( T L ) + V p C + w L = w T + V

18 Market Goods (C) Budget Constraint (wt+v)/p T V/p -(w/p) O Leisure (L)

19 Equilibrium in a Household with no Market Goods (C) (wt+v)/p household production C Q Q U 1 U 2 T U 0 V/p -(w/p) O M Q Leisure (L)

20 Slope of budget constraint ( wt V ) p V p wt p w T T p

21 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

22 Suppose the household production function: G = 40 H 0.5 H 2 The price of market good (p) = $ 1/unit The wage rate (w) = $ 10/hour MP = 40 - H Slope = - 10

23 G = 40 H 0.5 H 2 -w/p = 10 H G MP (g h )

24 Goods C + G MP < w/p C+G N N MP > w/p T V/p O L N Leisure (L)

25 Goods C + G C+G R R U 2 U 3 C+G N N U 1 T V/p O L R H N Leisure (L)

26 Goods C + G U 3 U 1 U 2 C+G N N C+G Q Q T V/p O L N L Q Leisure (L)

27 Goods C + G U 3 U 1 U 2 C+G N N C+G S C+G Q Q S T V /p V/p O L N L Q L S Leisure (L)

28 Goods C + G C+G P P U 4 C+G R C+G N R U 3 U N 2 U 1 C+G N N T V /p V/p O L R L P H N H N Leisure (L)

29 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

30 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

31 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

32 Lovingood & Cullough, 1986: Waktu & peralatan rmt input produksi rmt Pembelian peralatan rmt pembelian waktu leisure dari ibu rmt Pemilikan alat rmt alokasi waktu

33 PR Diketahui: G = 12H-0,8H 2 V = $20 w = $4/jam P = $2/unit

34 Ditanyakan: 1. Berapa jam alokasi waktu untuk pekerjaan rumah tangga (H) yang akan dicurahkan oleh ibu yang bekerja? 2. Jika ibu mengalokasikan waktu untuk leisure sebanyak 10 jam per hari, berapa unit (G+C) yang bisa dikonsumsi? 3. Jika upah naik menjadi $5/jam dan harga meningkat menjadi $3/unit, maka berapa alokasi waktu untuk pekerjaan rumah tangga?