Economics of Home Activities

Abstract

This paper explores the contribution of unpaid home activities to the economic welfare of the family. It begins with a review of the conventional economic framework on how household decisions are made. It deals with the modifications which take into account unpaid work in the home. The concept of ‘imputed income’ from home activities (like housework and child care) is then introduced before several possible methods of measuring that income are assessed. The final section of the paper analyses some policy implications which follow from recognizing imputed income as part of family income.