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The Supply of Labour and Household Production

In: Paid and Unpaid Labour in the Social Economy. An International Perspective

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  • João R. Sanson

    (Federal University of Santa Catarina)

Abstract

Labour supply is seen as an output from household production. Given by the physical effort of a person, working in the market also requires specific inputs. This process may be described with the help of a general technology that comprises joint production. At least one of the outputs is labour supply. With the help of a simplified version of the model, initially the choice among different types of market work is discussed. Within this discussion, it is shown how different estimates of the opportunity cost of time naturally appear, all in standard microeconomic results. Then, the definition of net result of the worker is related to economic rent due to the fact that the consumer-producer cannot alter the time endowment. As a result, the household production model, including labour supply, might be more amenable to integration into general equilibrium theory and microeconomic theory in general.

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This chapter was published in:

  • Marco Musella & Sergio Destefanis (ed.), 2009. "Paid and Unpaid Labour in the Social Economy. An International Perspective," AIEL Series in Labour Economics, AIEL - Associazione Italiana Economisti del Lavoro, number 03.
    This item is provided by AIEL - Associazione Italiana Economisti del Lavoro in its series AIEL Series in Labour Economics with number 03-05.

    Handle: RePEc:ail:chapts:03-05

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    Web page: http://www.aiel.it/
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    Keywords: labour supply; allocation of time; opportunity cost.;

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