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Income, wages and household production theory

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  • Biddle, Jeff E.
  • Hamermesh, Daniel S.

Abstract

With the American Time Use Survey 2003-15 we show that both non-workers and workers with higher household incomes spend less time on two quantitatively important time-intensive activities, sleep and TV-watching. This finding cannot be explained by the standard (Becker, 1965) ”commodity production” model. We modify that model to allow both substitution between time and goods in household production and substitution among commodities in utility functions, which rationalizes these results and suggests a way forward for empirical work on household behavior.

Suggested Citation

  • Biddle, Jeff E. & Hamermesh, Daniel S., 2020. "Income, wages and household production theory," Economics Letters, Elsevier, vol. 192(C).
    • Handle: RePEc:eee:ecolet:v:192:y:2020:i:c:s0165176520301397
    DOI: 10.1016/j.econlet.2020.109188
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    References listed on IDEAS

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    1. Richard Blundell & Luigi Pistaferri & Itay Saporta-Eksten, 2018. "Children, Time Allocation, and Consumption Insurance," Journal of Political Economy, University of Chicago Press, vol. 126(S1), pages 73-115.
    2. Kooreman, Peter & Kapteyn, Arie, 1987. "A Disaggregated Analysis of the Allocation of Time within the Household," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 223-249, April.
    3. Gronau, Reuben, 1977. "Leisure, Home Production, and Work-The Theory of the Allocation of Time Revisited," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1099-1123, December.
    4. Biddle, Jeff E & Hamermesh, Daniel S, 1990. "Sleep and the Allocation of Time," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 922-943, October.
    5. Daniel S. Hamermesh & Harley Frazis & Jay Stewart, 2005. "Data Watch: The American Time Use Survey," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 221-232, Winter.
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