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Distribution Of Economic Resources: Implications Of Including Household Production

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  • Jens Bonke

Abstract

The value of household production is estimated to 40–50 percent of GNP in most western countries, and because the distribution of this income‐in‐kind is different from ordinary income distribution, the concept of economic well‐being may include household production. The monetary value of household production is evaluated by a market alternative principle and an opportunity‐cost principle. In the last case a reservation wage is estimated, and integrated in a modified opportunity principle, which means that household work of non‐working women is evaluated by the reservation wage, and household work of working women and men by their wage‐rate. The conclusions are among others, that the inclusion of household production reduces the inequality, and that the women's contributions—money income and household production—functions as income equalizers.

Suggested Citation

  • Jens Bonke, 1992. "Distribution Of Economic Resources: Implications Of Including Household Production," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(3), pages 281-293, September.
    • Handle: RePEc:bla:revinw:v:38:y:1992:i:3:p:281-293
    DOI: 10.1111/j.1475-4991.1992.tb00426.x
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    Cited by:

    1. Jeehoon Han & Caspar Kaiser, 2024. "Time use and happiness: US evidence across three decades," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(1), pages 1-25, March.
    2. Blankenau, William & Kose, M. Ayhan, 2007. "How Different Is The Cyclical Behavior Of Home Production Across Countries?," Macroeconomic Dynamics, Cambridge University Press, vol. 11(1), pages 56-78, February.
    3. Frick, Joachim R. & Grabka, Markus M. & Groh-Samberg, Olaf, 2012. "The Impact of Home Production on Economic Inequality in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 43(3), pages 1143-1169.
    4. Harley Frazis & Jay Stewart, 2011. "How does household production affect measured income inequality?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 3-22, January.
    5. Leilanie Basilio, 2009. "Deciding Who Works Where – An Analysis of the Distribution of Work within Native and Immigrant Families in Australia," Ruhr Economic Papers 0125, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    6. Basilio, Leilanie, 2009. "Deciding Who Works Where – An Analysis of the Distribution of Work within Native and Immigrant Families in Australia," Ruhr Economic Papers 125, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    7. Han, Jeehoon & Meyer, Bruce D. & Sullivan, James X., 2020. "Inequality in the joint distribution of consumption and time use," Journal of Public Economics, Elsevier, vol. 191(C).
    8. repec:zbw:rwirep:0125 is not listed on IDEAS
    9. Harley Frazis & Jay Stewart, 2006. "How Does Household Production Affect Earnings Inequality?: Evidence from the American Time Use Survey," Economics Working Paper Archive wp_454, Levy Economics Institute.
    10. Anil Alpman & François Gardes, 2016. "Welfare Analysis of the Allocation of Time During the Great Recession," Post-Print halshs-01159507, HAL.
    11. Ezequiel Uriel & Javier Ferri & Maria Luisa Molto, 2005. "Estimation of an Extended SAM with household production for Spain 1995," Economic Systems Research, Taylor & Francis Journals, vol. 17(3), pages 255-278.
    12. France Caillavet, 1998. "La production domestique des femmes réduit l'inégalité des revenus familiaux," Économie et Statistique, Programme National Persée, vol. 311(1), pages 75-89.
    13. Gronau, Reuben, 1997. "The Theory of Home Production: The Past Ten Years," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 197-205, April.
    14. Cathleen Zick & W. Bryant & Sivithee Srisukhumbowornchai, 2008. "Does housework matter anymore? The shifting impact of housework on economic inequality," Review of Economics of the Household, Springer, vol. 6(1), pages 1-28, March.

    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General

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