Family economics applies basic economic concepts such as production, division of labor, distribution, and decision making apply to the study of the family. Using economic analysis it tries to explain outcomes unique to family- such as marriage, the decision to have children, fertility, polygamy, time devoted to domestic production, and dowry payments.
The family, although recognized as fundamental from Adam Smith onward, received little systematic treatment in economics before the 1960's. Important exceptions are Thomas Malthus' model of population growth and Friedrich Engels' pioneering work on the structure of family, the latter being often mentioned in Marxist and feminist economics. Since the 1960's Family Economics has developed within mainstream economics, propelled by the New Home Economics started by Gary Becker, Jacob Mincer, and their students. Standard themes include:
- fertility and the demand for children in developed and developing countries
- child health and mortality
- interrelation and trade-off of 'quantity' and 'quality' of children through investment of time and other resources of parents
- altruism in the family, including the rotten kid theorem
- sexual division of labor, intra-household bargaining, and the household production function.
- mate selection, search costs, marriage, divorce, and imperfect information
- family organization, background, and opportunities for children
- intergenerational mobility and inequality, including the bequest motive.
- human capital, social security, and the rise and fall of families
- macroeconomics of the family.
Several surveys, treatises, and handbooks are available on the subject.
Read more about Family Economics: History of Family Economics, Marriages As Firms, Division of Labor Within The Family, Decision-making in The Family
Famous quotes containing the words family and/or economics:
“There are no adequate substitutes for father, mother, and children bound together in a loving commitment to nurture and protect. No government, no matter how well-intentioned, can take the place of the family in the scheme of things.”
—Gerald R. Ford (b. 1913)
“Women’s battle for financial equality has barely been joined, much less won. Society still traditionally assigns to woman the role of money-handler rather than money-maker, and our assigned specialty is far more likely to be home economics than financial economics.”
—Paula Nelson (b. 1945)