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Lecture 4

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Department
Demography
Course
DEMOG C175
Professor
Roy
Semester
Spring

Description
Lecture 4 1/31/2013 Problem set 1 (on bSpace) is due in lecture at 2:10pm or turn it in early at the demography building. iClicker starts today. Computer sections next week. Mon 1-2 64 Barrows Tues 4-5 seminar room 2232 piedmont Tues 5-6 seminar room 2232 piedmont Thu 1-2 seminar room 2232 piedmont Office hours: Today 3:30-5 Mon 11-12:30 … check online Readings: Claudia Goldin, family For Thursday: Lehrer Economics of the family Features of the traditional family - Monitoring of members’ behavior (last time) - Childbearing and rearing too maybe 32 years of adult life for women (say 18 to 50); reproduction was central (including pregnancy, breastfeeding, caring for young kids) Important theoretical concept: Gains to marriage - Combined utility of two people married, minus sum of separate utilities if single - Usually higher utility than if single o Specialization and division of labor in the household – different economic roles, because of economies of scale (e.g. cooking for two is not twice as hard as cooking for one) o Sex, companionship, love o Bearing and raising children o Efficiency in living arrangement, returns to scale: roommates get you the same - Very large households (aunts, grandparents, adult siblings and children) are more efficient but conflicts arise easily - Preindustrial family had large gains to marriage o Household was so important as locus of both production and consumption o Specialization, division of labor, and returns to scale were all so important Why did this change? Fundamental causal drivers of change Drivers of change reduce gains to marriage by reducing importance of the economic roles of the household - Shift of locus of production from household to factories and offices, reduces economic functions of family, makes children incompatible with work (People working outside the home more) - More difficult to work outside the home with young childen – women less likely to have children - Changing technology of home production and consumption makes it easy to run a household with only one person, unlike in old day
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