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Leisure, Home Production and Work--The Theory of The Allocation of Time Revisited

  • Reuben Gronau

From the theoretical point of view, the justification for aggregating leisure and work at home into one entity, "non-market time" (or "home time") can rest on two assumptions: (a.) the two elements react similarly to changes in the socio-economic environment and, hence, nothing is gained by studying them separately, and (b.) the two elements satisfy the conditions of a composite input, i.e., their relative price is constant, and there is no interest in investigating the composition of this aggregate since it has no bearing on production and the price of the output. This study sets out to show that none of these assumptions holds. Recent time budget findings have established that work at home is affected differently by changes in socioeconomic variables than is leisure, and this paper shows that the aggregation is also suspect from the analytical point of view.

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File URL: http://www.nber.org/papers/w0137.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0137.

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Date of creation: May 1976
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Publication status: published as Gronau, Reuben. "Leisure, Home Production and Work - The Theory of the Allocation of Time Revisited," Journal of Political Economy, Vol. 85, No. 6, pp. 1099-1124, (Dec. 1977).
Handle: RePEc:nbr:nberwo:0137
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  1. Sharir, Shmuel, 1975. "The Income-Leisure Model: A Diagrammatic Extension," The Economic Record, The Economic Society of Australia, vol. 51(133), pages 93-98, March.
  2. Pollak, Robert A & Wachter, Michael L, 1975. "The Relevance of the Household Production Function and Its Implications for the Allocation of Time," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 255-77, April.
  3. Gronau, Reuben, 1973. "The Intrafamily Allocation of Time: The Value of the Housewives' Time," American Economic Review, American Economic Association, vol. 63(4), pages 634-51, September.
  4. Willis, Robert J, 1973. "A New Approach to the Economic Theory of Fertility Behavior," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S14-64, Part II, .
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