Ekonomi Keluarga -- Hartoyo

Household Production Theory

Oleh:

Dr. Ir. Hartoyo, M.Sc

Departemen IKK - IPB

Outline:

Pendahuluan: Alokasi Waktu

Work and Leisure: How the Household Spends its Time

Utility Function

Time and Income Constraints

Equilibrium

Ekonomi Keluarga -- Hartoyo

Pendahuluan

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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.

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

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Sumber: Sayer, Cohen, & Casper, 2003

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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)

Ekonomi Keluarga -- Hartoyo

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

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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)

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Goods

C + G

Leisure (L)

T

O

U1

U0

A

LA

(C+G)A

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The Time Constraint

The available time devoted to:

1. Market work (M)

2. Household work (H)

3. Leisure time (L)

T = M + H + L

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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)

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Goods

C + G

Household Work

(H)

O

Q

P

R

HP HRHQ

GQ

GP

GR

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Goods

C + G

Leisure (L)

T

O

Q

P

R

LR LP LQ

GQ

GP

GR

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Equilibrium in a Robinson Crusoe Household

Goods

(G)

T

O

P

Q

U1

U0

Leisure (L)LQLP

GQ

GP

T = H + L

G = g (T-L; X)

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The Market Work Budget Constraint

Y = E + VWhere:

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

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E = w M

w = wage rate

M = time spent on market work

p C = w M + Vp C = Y = E + V

T = M + L or M = T - L

Time Constraints

p C = w M + V p C = w ( T – L ) + V

p C + w L = w T + V

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Budget ConstraintMarket

Goods

(C)

T

O Leisure (L)

V/p

(wT+V)/p

-(w/p)

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Equilibrium in a Household with no household production

Market

Goods

(C)

T

O

U1

Leisure (L)MQ

V/p

(wT+V)/p

-(w/p)

U0

U2

QCQ

Slope of budget constraint

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p

w

TT

pwT

pV

p

VwT

)(

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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

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Suppose the household production function:

G = 40 H – 0.5 H2

The price of market good (p) = $ 1/unit

The wage rate (w) = $ 10/hour

MP = 40 - H

Slope = - 10

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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

. . .

. . .

G = 40 H – 0.5 H2 -w/p = 10

Ekonomi Keluarga -- Hartoyo Leisure (L)

Goods

C + G

T

O

MP > w/p

N

LN

C+GN

MP < w/p

V/p

Ekonomi Keluarga -- HartoyoLeisure (L)

Goods

C + G

T

O

N

HN

C+GN

V/p

R

U1

U2

U3

LR

C+GR

Ekonomi Keluarga -- HartoyoLeisure (L)

Goods

C + G

T

O

N

LN

C+GN

V/p

Q

U1

U2

U3

LQ

C+GQ

Ekonomi Keluarga -- Hartoyo Leisure (L)

Goods

C + G

T

O

N

LN

C+GN

V/p

Q

U1

U2

U3

LQ

C+GQ

V’/p

SC+GS

LS

Ekonomi Keluarga -- HartoyoLeisure (L)

Goods

C + G

T

O

N

HN

C+GN

V/p

R

U1

U2

U3

LR

C+GR

U4

P

N’

HN’LP

C+GN’

C+GP

V’/p

Ekonomi Keluarga -- Hartoyo

Bagaimana pengaruh faktor-faktor

berikut terhadap alokasi waktu RT?

1. Income 2. Wage rate 3. Specialization of function and the

division of labor4. Technical change5. Preference6. Household size and composition

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. 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?

Ekonomi Keluarga -- Hartoyo