Abstract
When measuring economic well-being, household income figures are routinely adjusted for nonwage income, taxes, and government transfers. Rarely are the figures adjusted to reflect the value of household work. An opportunity cost methodology is used in this article to expand the operationalization of household income so that it includes not only money income but the economic value of home production activities as well. The analysis indicates that the average married couple in the United States increases its access to goods and services dramatically by engaging in home production. While the average economic contribution stemming from spouses' home production is sizable, its distribution is somewhat uneven. Gini ratios calculated using income figures that include home production reveal greater distributional differences than do the Gini ratios calculated using only money income.
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An earlier version of this paper was presented at the 1987 Joint Statistical Meetings in San Francisco, CA. The research reported here was supported in part by the University of Utah Research Fund. Helpful comments were given on an earlier draft of the manuscript by E. Scott Maynes, Ken R. Smith, the members of the Department of Home Management and Housing Seminar at Ohio State University, and three anonymous reviewers. Excellent research assistance was provided by Jutta Joesch and Daniel Aldershoff.
Cathleen D. Zick is an Associate Professor in the Department of Family and Consumer Studies, University of Utah, Salt Lake City, Utah 84112. Dr. Zick's current research assesses the impact of household composition changes on economic well-being. W. Keith Bryant is a Professor in the Department of Consumer Economics and Housing, MVR Hall, Cornell University, Ithaca, New York 14853. Dr. Bryant's current research focuses on the relationship between married women's labor supply and family ownership of durable goods.
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Zick, C.D., Bryant, W.K. Shadow wage assessments of the value of home production: Patterns from the 1970's. J Fam Econ Iss 11, 143–160 (1990). https://doi.org/10.1007/BF00987078
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DOI: https://doi.org/10.1007/BF00987078