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Distribution of Economic Resources: Implications of Including Household Production

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  • Bonke, Jens

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 women's contributions--money income and household production--functions as income equalizers. Copyright 1992 by The International Association for Research in Income and Wealth.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income & Wealth.

Volume (Year): 38 (1992)
Issue (Month): 3 (September)
Pages: 281-93

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Handle: RePEc:bla:revinw:v:38:y:1992:i:3:p:281-93

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Cited by:
  1. Joachim Frick & Markus Grabka & Olaf Groh-Samberg, 2012. "The impact of home production on economic inequality in Germany," Empirical Economics, Springer, vol. 43(3), pages 1143-1169, December.
  2. Harley Frazis & Jay Stewart, 2006. "How Does Household Production Affect Earnings Inequality? Evidence from the American Time Use Survey," Working Papers 393, U.S. Bureau of Labor Statistics.
  3. Blankenau, William & Kose, M. Ayhan, 2007. "How Different Is The Cyclical Behavior Of Home Production Across Countries?," Macroeconomic Dynamics, Cambridge University Press, vol. 11(01), pages 56-78, February.
  4. Ezequiel Uriel Jiménez & Javier Ferri & María Luisa Moltó Carbonell, 2005. "Estimation Of An Extended Sam With Household Production For Spain 1995," Working Papers. Serie EC 2005-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  5. Dobrescu, Emilian, 1998. "Macromodels of the Romanian transition economy, Second edition," MPRA Paper 35825, University Library of Munich, Germany.
  6. 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.
  7. Dobrescu, Emilian, 1996. "Macromodels of the Romanian transition Economy," MPRA Paper 35810, University Library of Munich, Germany.
  8. 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.

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