Men-Women Relationships Through Time Past to present (Blau p 12-29)

Why would people marry under these circumstances? Gary Becker’s Theory of Marriage –Marriage has two sides Household Working –People marry because each can receive benefits –Comparative advantage

Comparative Advantage Being able to do a task at a lower opportunity cost than the other person in question. What is opportunity cost??? –What you have to give up Males – comparative advantage in??? Females – comparative advantage in??? Lets think of this in terms of the market…

Producing and trading Two people: Elizabeth and Brian Each produce two goods: Bread and Apples Elizabeth  10 loaves of bread and 10 apples Brian  5 loaves of bread and 15 apples Elizabeth Apples Elizabeth Bread Brian ApplesBrian Bread

Comparative Advantage Should both produce apples and bread or should they specialize? What does specialize mean? –Produce the good that you do best –Produce at a lower costs than other person(s) can –Called comparative advantage –Looks at opportunity cost What was that? What you have to give up Give up less?? Have the comparative advantage

What are the opportunity costs? Elizabeth –If give up 10 apples how much more bread can she produce? 10 units –If give up 10 loaves of bread how many more apples can she produce? 10 units Opportunity Costs –10 Bread = 10 Apples –1 Bread = 1 Apple Elizabeth Apples Elizabeth Bread

What are the opportunity costs? Brian –If give up 15 apples how much more bread can he produce? 5 units –If give up 5 loaves of bread how many more apples can he produce? 15 units Opportunity Costs –5 Bread = 15 Apples –1 Bread = 3 Apples –1/3 Bread = 1 Apple Brian Apples Brian Bread

Should we specialize? Elizabeth  1 Bread = 1 Apple Brian  1 Bread = 3 Apples  1/3 Bread = 1 Apple Who produces apples cheaper? What does cheaper mean? Lower opportunity cost (give up less) Brian!!! Give up only 1/3 loaves of bread Who produces bread cheaper? Elizabeth!!! Give up only 1 apple

Here is the deal Elizabeth produces only bread (20 loaves) Brian produces only apples (30 apples) Trade 8 loaves of bread for 12 apples Breakdown of end result –Elizabeth Bread? 12 loaves ( traded) –Elizabeth Apples? 12 apples ( traded)

Brian Bread –8 loaves (0 + 8 traded) Brian Apples –18 apples ( traded) Are they better off??

No Specialization or Trade Specialization and Trade Gains from trade Elizabeth Bread Elizabeth Apples Brian Bread Brian Apples

Are they better off?? No Specialization or Trade Specialization and Trade Gains from trade Elizabeth Bread 10 Elizabeth Apples 10 Brian Bread 5 Brian Apples 15

Are they better off?? No Specialization or Trade Specialization and Trade Gains from trade Elizabeth Bread 1012 Elizabeth Apples 1012 Brian Bread 58 Brian Apples 1518

Are they better off?? No Specialization or Trade Specialization and Trade Gains from trade Elizabeth Bread Elizabeth Apples Brian Bread 58+3 Brian Apples

Both are Better off!!

Can you do it??? Comparative Advantage example

Why don’t marriages stay together as much as in the past? Women have increased their comparative advantage in the workforce Benefits of marriage are less

Divorce Rates of Selected Countries CountryDivorce Rate U.S.62% Russia34% Canada25% China8% Japan4%

Why did women begin devoting more time to working after 1960? Less products “homemade” Less time needed to do housework because of washing machines, vacuums… Decrease in the fertility rates of women –10 in the 18 th century –5 in the early 19 th century –3 in the 20 th century –2.1 presently

Changes in Society overtime Marriage Bar (late 1800s until mid 1900s) Labor Force Participation of women has consistently been increasing (43% to over 70% currently) Women are now expected to be part of the labor force. How have these changes impacted the workforce?