Vladimir earns as before 8 x 300, which is 2400 rubles. It will also enable you to see that it is just one theory claiming economic agents to be self-centered and focusing on the measurable only. This MOOC will illustrate economic pluralism not only in substance but also in form. The modern household is characterized by heterogeneity, complexity, dynamism and processes occurring in it. Second, to enable you to do some basic economic calculations that are important in economic life, such as calculating an inflation rate, and in economic policies, such as estimating the rough gains from trade for both trading partners, and in economic arguments, such as in calculating utility maximization with given prices and budgets. But there's also a threat point, as in bargaining between a labor union and a factory. Factors of everyday life such as security, freedom and justice remain most important to them. Then the gender equal norm scenario, and in the bottom the gender stereotype norm scenario. Are you still following me? Gender stereotype norm scenario and the gender-equal norm scenario. Simply because they spend less time on careers. The place of households in the expansion of market relations is determined by the following tips: Households, just like firms and states, play an important role in the movement of resources, income and goods. Remember from chapter one that neoclassical economics has a static focus not a dynamic focus. You could see this in the last column of the table. In household bargaining, the threat point is also the exit situation for partner. First, the gender reverse norm scenario. Yes, they're also social units. Then you are at the right place to learn economics! I will elaborate this later in this presentation. Economically speaking, households perform five functions. Work and leisure happen not only through cooperation, but also through conflict. Because it will help you to see why many economists cannot predict crises, whereas others can see signals but are often not being listened to because they do not belong to the dominant school of thought. The possibility frontier has become steeper in the gender equal norm scenario as compared to the gender stereotype norm scenario. Getting the cup and the tea bag and the sugar is work. Other economic theories go well beyond these limitations. The next two presentations will analyze household bargaining further. For example, through affordable childcare, and in support for fathers, for example, by providing parental leave. Under a regime of a gender unequal norm, as is the case in large parts of Russia, Vladimir works full-time. Or perhaps you will find tips for how you could negotiate a better deal with your partner. So our calculations of the general division of labor and leisure time is always for the remaining 14 hours. And 2,500 rubles in paid work. 14 hours minus 8 hours paid work and 1 hour unpaid work. But isn't cooking just fun and has leisure time rather than unpaid work? And Olga becomes the breadwinner. Just like commercial enterprises and the government, households participate in all economic processes. Created by. Flagging me as breadwinner or as homemaker. On average, in most countries, the total hours worked is larger for women. And what about gardening, is this unpaid work or a hobby? So work time is 10 hours then leisure time is 4 hours. A very simple way of teaching here, with all relevant examples, clarity of communication and diagrams, graphs, made this easy to understand conceptually. To view this video please enable JavaScript, and consider upgrading to a web browser that In particular, households buy the output of goods and services that firms produce. Vladimir must give up 300 Ruble for an hour of home good production. Gender refers to the socially and culturally constructed differences between men and women with hierarchical meanings, often in favor of what is regarded as masculine. Now, what becomes clear from the neoclassical analysis is that without any gender policies, nothing will change. Bargaining power comes from what makes you economically attractive to the other. Aren't they units of love and caring, social units more than economic units? This mixture of the economics of the firm and of the household is characteristic of situation of most families in developing countries and provides the starting point for our analysis. It is not so difficult to make all the calculations, but I have to take you through the steps. But they're clearly economic units too, consisting of individuals and the economic goals of providing for themselves and for those near to them. First, to enable you to understand different economic viewpoints, linked to important traditions in economic thought, and basic economic concepts belonging to these theoretical perspectives. Now I will take you through a basic example of household bargaining. But not everything is different in this course. Remember, neoclassical economics is about solving optimization problems. Consumption, in economics, the use of goods and services by households. However, there is one important difference, do you note the change in the units on the X axis? Households provide the needed level of consumer demand, without which the market mechanism would not be functional. For example, in a labor dispute, a strike is the threat point for labor. The table with time-use data on unpaid work from a Russian village shows that Russian women do two and a half times more unpaid work than Russian men. © 2020 Coursera Inc. All rights reserved. Vladimir has a seasonal contract, Olga has a fixed contract. Hence we often see a gender division of labor in households based on gender stereotypes about work. Consumption is distinct from consumption expenditure, which is the purchase of goods and services for use by households. This term was formerly used to describe female domestic work, but nowadays, the definition of home economics has been expanded due to the increased influence of households on the national economy. The value of Olga's unpaid work is her opportunity cost of time. More people can enjoy the consumption of a single good, such as the TV. The four theories that I like to introduce you to are Social Economics, Institutional Economics, Post Keynesian economics and, at the very end of each topic, Neoclassical Economics, for the special case of ideally functioning markets. In a gender equal norm scenario, the household income is bigger, but the total leisure time is less, although now it is distributed more equally. The connection between home economics and households is obvious. This suggests that households play a large role in the development of the country and proves the need to study their place and role in the modern economy. Check it out for yourself. The inner loop of the circular-flow diagram (economics. The property of the family includes things like: READ ALSO: Nature and importance of economics in our life. PLAY. Now if you look at the diagram, you see a change. jasslie_salinas. Construction Engineering and Management Certificate, Machine Learning for Analytics Certificate, Innovation Management & Entrepreneurship Certificate, Sustainabaility and Development Certificate, Spatial Data Analysis and Visualization Certificate, Master's of Innovation & Entrepreneurship. Simply put, a household is a unit that is run by one or more persons living together and having a common budget. If she would've worked 11 hours unpaid work, she would've worked 11 times 200 rubles, which is 2,200 rubles. Hence we often see a gender division of labor in households based on gender stereotypes about work. And you will meet an online student, based in Greece, who will help you through the tutorial videos in which I will explain key concepts, tools and techniques. Instead, I will introduce you to four very different economic theories for the whole set of standard topics in microeconomics and macroeconomics. Write. So men and women can easily switch working hours between paid and unpaid work and between work and leisure time. Household bargaining describes the continuous interactions between partners in a household in order to realize their individual and joint objectives of a sustainable livelihood for themselves and their dependents.