It is the first day back to school for the kids, but it’s also Claire’s first day at her new job working for her father, Jay. Phil tries to be supportive, but refers to the last 20 years that Claire has spent as a stay at home mom as a vacation. The Income Leisure Tradeoff model assumes that participants can decide between working at paid employment or spending their time in leisure, but household production is often encapsulated in leisure. The household production model recognizes that time spent at home in productive activities is different than time spent in leisure.
See more: employment, income leisure tradeoff, household labor supply, household production, labor force participation, specialization, tradeoffs, unemployment
It is career day at Luke’s school, and the teacher asks Claire to speak about her job as a stay at home mom. She points out that she actually has a lot of different jobs as a stay-at-home-mom. The household production model assumes that agents decide between working at paid work or working at home and producing things that they could have bought with income. Both yield some level of utility, but some partners will specialize in household production depending on the relative wages of the other partner.
One of the downsides of specializing in household labor is that people lose specific and general human capital associated with market work. While Claire would like to go back to work, it is hard to find a job after you have been out of the labor force for 15 years, mainly because everyone who didn’t drop out would have continued learning new skills. In labor economics, this is known as The Mommy Track.
See more: household labor supply, household production, human capital depreciation, job search, labor force, labor force participation, labor market, skills, tradeoffs, unemployment
With Lilly in school and Cam & Mitchell unsure about adopting another baby, Mitchell thinks it’s a good time for Cam to get a job. Mitchell works with his friend Longeness to secure Cam a job at a local boutique under the guise that the shop needs someone to work and Cam just happens to be available. Cam initially accepts because it seems like a great match for his tastes and skill set, but Jeoux lets the cat out of the bag that it wasn’t a sincere offer, and Cam is offended that Mitch thinks he is too lazy to get a job.
In the Household Production model, decision makers must decide whether to supply their labor for paid employment or supply their labor at home in household production. Cam lists many of the household production items that he produces with his labor, including paying bills, grocery shopping, and maintaining the house. Each of these items produce utility for the household, which could be purchased with Cam’s income. A secondary consideration of work, beyond the household production model is nonpecuiniary benefits of work like social interaction and purpose.
See more: household production, human capital, labor force, labor-leisure tradeoff, labor supply, marginally attached, nonpecuniary benefits, search, tastes and preferences, tradeoffs, unemployment
Cam’s dad is down for a visit, and Jay is upset because he feels like he treats Mitchell like the “woman” in the relationship. Jay confronts Cams dad and they realize that gender roles are not the same today as they were when they were growing up, but it makes both of them feel a little better to ascribe certain traditionally female characteristics to their son’s partner.
See more: bargaining power, comparative advantage, gender roles, household labor supply, household production, specialization
Cameron gets Lilly a job as a child actor, but Mitchell is not excited about it and says no. Cameron doesn’t understand why Mitchell thinks he should have the final say in household decisions. Theoretically, decision making in the household production model tends to lean toward the spouse with greater access to resources (which Cam notes in the clip), but it doesn’t mean that partner gets to make all of the decisions. The unitary model assumes one spouse makes all the decisions as a social planner, but the bargaining model means that decisions are shared between partners.
See more: access to resources, bargaining power, household labor supply, household production, interdependent utility functions
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
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
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
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