11 Pages Posted: 7 Dec 2012
Date Written: May 31, 2006
Studying the incentives and constraints in the non-market sector — that is, home production — enhances our understanding of economic behavior in the market. In particular, it helps us to understand (1) small variations of labor supply over the life cycle, (2) large variations of employment relative to wages over the business cycle, and (3) large income differences across countries.
Keywords: home production, time allocation, labor supply
JEL Classification: E3, J2, O4
Suggested Citation: Suggested Citation