ECON 262 Study Guide - Midterm Guide: Jacob Mincer, Gary Becker, Utility
13 Feb 2019
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1960s literature of gary becker and jacob mincer. They have developed a neoclassical model which assumes specialization and a division of labour within the family which is a single male breadwinner model. This essentially that the male within the family works in the market and the female takes care of the home duties. Unsatisfactory because it treats the family as a single utility maximizing unit which shows harmonious preferences or benevolent decision-maker. The point is the mincer and becker tried to point out an economic advantage to family formation. What we assume here is that the family is a utility maximizing unit whose adult members make rational choices. Utility is a function of commodities which depends on u(commodities) which equals u(market goods, non-market time). These commodities essentially require market goods and some non-market time. How the time is spent between work (market goods) and non-market time actually matters a lot.
