household production theory - bogor agricultural...
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Ekonomi Keluarga -- Hartoyo
Household Production Theory
Oleh:
Dr. Ir. Hartoyo, M.Sc
Departemen IKK - IPB
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Outline:
Pendahuluan: Alokasi Waktu
Work and Leisure: How the Household Spends its Time
Utility Function
Time and Income Constraints
Equilibrium
Ekonomi Keluarga -- Hartoyo
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Pendahuluan
Ekonomi Keluarga -- Hartoyo
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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
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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.
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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
Ekonomi Keluarga -- Hartoyo
Sumber: Sayer, Cohen, & Casper, 2003
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Ekonomi Keluarga -- Hartoyo
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)
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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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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)
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Ekonomi Keluarga -- Hartoyo
Goods
C + G
Leisure (L)
T
O
U1
U0
A
LA
(C+G)A
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Ekonomi Keluarga -- Hartoyo
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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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)
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Ekonomi Keluarga -- Hartoyo
Goods
C + G
Household Work
(H)
O
Q
P
R
HP HRHQ
GQ
GP
GR
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Ekonomi Keluarga -- Hartoyo
Goods
C + G
Leisure (L)
T
O
Q
P
R
LR LP LQ
GQ
GP
GR
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Ekonomi Keluarga -- Hartoyo
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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Ekonomi Keluarga -- Hartoyo
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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Ekonomi Keluarga -- Hartoyo
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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Ekonomi Keluarga -- Hartoyo
Budget ConstraintMarket
Goods
(C)
T
O Leisure (L)
V/p
(wT+V)/p
-(w/p)
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Ekonomi Keluarga -- Hartoyo
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
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Slope of budget constraint
Ekonomi Keluarga -- Hartoyo
p
w
TT
pwT
pV
p
VwT
)(
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Ekonomi Keluarga -- Hartoyo
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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Ekonomi Keluarga -- Hartoyo
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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Ekonomi Keluarga -- Hartoyo
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
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Ekonomi Keluarga -- Hartoyo Leisure (L)
Goods
C + G
T
O
MP > w/p
N
LN
C+GN
MP < w/p
V/p
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Ekonomi Keluarga -- HartoyoLeisure (L)
Goods
C + G
T
O
N
HN
C+GN
V/p
R
U1
U2
U3
LR
C+GR
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Ekonomi Keluarga -- HartoyoLeisure (L)
Goods
C + G
T
O
N
LN
C+GN
V/p
Q
U1
U2
U3
LQ
C+GQ
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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
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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
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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
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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
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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
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Lovingood & Cullough, 1986:
Waktu & peralatan rmt input produksi rmt
Pembelian peralatan rmt pembelian waktu
‘leisure’ dari ibu rmt
Pemilikan alat rmt alokasi waktu
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PR
Diketahui:
G = 12H-0,8H2
V = $20
w = $4/jam
P = $2/unit
Ekonomi Keluarga -- Hartoyo
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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