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The Supply of Labour and Household Production

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


  • João R. Sanson

    (Federal University of Santa Catarina)


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.

Suggested Citation

  • João R. Sanson, 2009. "The Supply of Labour and Household Production," AIEL Series in Labour Economics,in: Marco Musella & Sergio Destefanis (ed.), Paid and Unpaid Labour in the Social Economy. An International Perspective, edition 1, chapter 5, pages 63-80 AIEL - Associazione Italiana Economisti del Lavoro.
  • Handle: RePEc:ail:chapts:03-05

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    References listed on IDEAS

    1. Matthew O. Jackson & Simon Wilkie, 2005. "Endogenous Games and Mechanisms: Side Payments Among Players," Review of Economic Studies, Oxford University Press, vol. 72(2), pages 543-566.
    2. Hoffman, Elizabeth & Spitzer, Matthew L, 1982. "The Coase Theorem: Some Experimental Tests," Journal of Law and Economics, University of Chicago Press, vol. 25(1), pages 73-98, April.
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    More about this item


    labour supply; allocation of time; opportunity cost.;

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply


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