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Structural transformation, marketization, and household production around the world

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  • Bridgman, Benjamin
  • Duernecker, Georg
  • Herrendorf, Berthold

Abstract

We provide evidence on the patterns of household production in 43 developing and developed countries. Household hours account on average for nearly half of the total hours worked in the household and the market. The vast majority of household hours produce services. As GDP per capita increases, average total hours worked and average household hours per working–age population decrease while average market hours increase (“marketization”); hours producing services increase their share in total hours (“structural transformation”). The decrease in household hours is mostly due to changes in housework (cleaning, cooking etc.) and marketization is mostly due to changes in women's hours. Within countries, more educated people work more in the market and less in the household. We also impute the labor productivity of household production for 34 countries of our sample. We find that it is positively correlated with and much lower than that in the market.

Suggested Citation

  • Bridgman, Benjamin & Duernecker, Georg & Herrendorf, Berthold, 2018. "Structural transformation, marketization, and household production around the world," Journal of Development Economics, Elsevier, vol. 133(C), pages 102-126.
  • Handle: RePEc:eee:deveco:v:133:y:2018:i:c:p:102-126
    DOI: 10.1016/j.jdeveco.2017.12.009
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    Cited by:

    1. Benjamin Bridgman, 2016. "Engines of Leisure," BEA Working Papers 0137, Bureau of Economic Analysis.
    2. Ying Feng & David Lagakos & James E. Rauch, 2018. "Unemployment and Development," Working Papers 2018-083, Human Capital and Economic Opportunity Working Group.
    3. Xue, Jianpo & Yip, Chong K., 2018. "Home production, balanced-budget taxation and economic (in)stability," Journal of Macroeconomics, Elsevier, vol. 56(C), pages 231-242.
    4. Alexander Bick & Bettina Brüggemann & Nicola Fuchs-Schündeln, 2016. "Hours Worked in Europe and the US: New Data, New Answers," CESifo Working Paper Series 6068, CESifo.
    5. L. Rachel Ngai & Barbara Petrongolo, 2017. "Gender Gaps and the Rise of the Service Economy," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 1-44, October.
    6. Alessio Moro & Solmaz Moslehi & Satoshi Tanaka, 2017. "Does Home Production Drive Structural Transformation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(3), pages 116-146, July.
    7. Alexander Bick & Nicola Fuchs-Schündeln & David Lagakos & Hitoshi Tsujiyama, 2019. "Why are Average Hours Worked Lower in Richer Countries?," NBER Working Papers 26554, National Bureau of Economic Research, Inc.
    8. Cuberes David & Teignier Marc, 2018. "Macroeconomic costs of gender gaps in a model with entrepreneurship and household production," The B.E. Journal of Macroeconomics, De Gruyter, vol. 18(1), pages 1-15, January.
    9. Peter A.G. van Bergeijk, 2021. "Pandemic Economics," Books, Edward Elgar Publishing, number 20401.
    10. Alexander Bick & Bettina Brüggemann & Nicola Fuchs‐Schündeln, 2019. "Hours Worked in Europe and the United States: New Data, New Answers," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(4), pages 1381-1416, October.
    11. K.E. McConnell & Juha V. Siikamäki & V. Kerry Smith, 2017. "A Strategy for Evaluating the Opportunity Cost of Time Estimates from New Choice Margins," NBER Working Papers 23349, National Bureau of Economic Research, Inc.
    12. Huang, Hongyun & Wang, Fengrong & Song, Malin & Balezentis, Tomas & Streimikiene, Dalia, 2021. "Green innovations for sustainable development of China: Analysis based on the nested spatial panel models," Technology in Society, Elsevier, vol. 65(C).
    13. Poschke, Markus, 2019. "Wage Employment, Unemployment and Self-Employment across Countries," IZA Discussion Papers 12367, Institute of Labor Economics (IZA).
    14. Bridgman, Benjamin, 2016. "Home productivity," Journal of Economic Dynamics and Control, Elsevier, vol. 71(C), pages 60-76.
    15. José M. Ordóñez-de-Haro & José L. Torres, 2019. "Sharing Economy in Macroeconomics: Collaborative Consumption and Durable Goods," Working Papers 2019-01, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
    16. Duernecker, Georg & Herrendorf, Berthold, 2018. "On the allocation of time – A quantitative analysis of the roles of taxes and productivities," European Economic Review, Elsevier, vol. 102(C), pages 169-187.
    17. Benjamin Bridgman, 2018. "Is Productivity on Vacation? The Impact of the Digital Economy on the Value of Leisure," BEA Working Papers 0148, Bureau of Economic Analysis.
    18. Khan, Muhammad Aamir, 2020. "Cross sectoral linkages to explain structural transformation in Nepal," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 221-235.
    19. Michael Sposi, 2015. "Navigating the Structure of the Global Economy," Annual Report, Globalization and Monetary Policy Institute, Federal Reserve Bank of Dallas, pages 10-17.
    20. Yuko Kinoshita & Mariya Brussevich & Cristian Alonso & Ms. Era Dabla-Norris & Ms. Kalpana Kochhar, 2019. "Reducing and Redistributing Unpaid Work: Stronger Policies to Support Gender Equality," IMF Working Papers 2019/225, International Monetary Fund.
    21. Bednar, William & Pretnar, Nick, 2020. "Home Production with Time to Consume," MPRA Paper 103730, University Library of Munich, Germany.
    22. Gonzalo Pastor & J. Fernando Larios Meoño, 2019. "Peru: Assessing Its Strong Macroeconomic Performance through Labor Market Indicators," Working Papers 153, Peruvian Economic Association.

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    More about this item

    Keywords

    Household production; Marketization; Structural transformation;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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