Role Reversal

After Mitchell quit his job, Cameron went to work to support them. Both Mitchell and Cameron think their partner is happy with this role reversal, but both are miserable and want to return to their original arrangement. Neither wants to say anything to other, because they are focused on maximizing their combined utility rather than their own, but they aren’t share their disutility.

See more: added worker effect, division of labor, household labor supply, household production, interdependent utility functions, labor supply, preferences, specialization, unemployment

Working Girl

Claire is going to meet an old friend from work, but her kids are surprised to find out that she once had a job. She describes why she chose to leave the workforce. The household production model allows for workers to determine if they would prefer to produce items for household consumption or work in the paid labor force to purchase those same item. Claire must have steep indifference curves given she quit the labor force to produce household items.

See more: comparative advantage, division of labor, household labor supply, household production labor force, labor force participation, labor supply, preferences, specialization, tradeoffs

Morning Routine

When the kids are back in school, it means that Phil and Claire go into production mode to make sure everyone is out of the house on time. In this one-on-one aside, Phil is under the impression that both he and Claire get up at 7 in the morning to start taking care of the kids. Claire informs him that she actually starts her day as a stay at home mom at 6 in the morning. Because Claire has a comparative advantage in getting the kids ready for school in the morning, Phil gets an extra hour of sleep. In the household model of labor supply, partners often divide the tasks based on specialization, not necessarily on equitable terms.

See more: comparative advantage, division of labor, household production, household labor supply, interdependent utility functions, labor supply, specialization

Great Parents

In an earlier scene, Mitchell bumps his daughters head on a doorframe, but then begins to worry that he may not be ready to have a child. Mitch sees how much Lily likes Cam and how good of a caretaker he is and begins to worry that he is a worse parent, but Cam reassures him that they are both great parents because they complement each other. Their decision to specialize in particular tasks allows them to complete more work together and both recognize they wouldn’t accomplish nearly as much if each had to go it alone.

See more: comparative advantage, complements, division of labor, household production, household labor supply, interdependent utility functions, labor supply, specialization