1. MODERN LABOR ECONOMICS THEORY AND PUBLIC POLICY CHAPTER Modern Labor Economics: Theory and Public Policy, Eleventh Edition Ronald G. Ehrenberg Robert S. Smith 11 TH EDITION Copyright ©2012 by Pearson Education, Inc. All rights reserved. Labor Supply: Household Production, the Family, and the Life Cycle 7

2. Copyright ©2012 by Pearson Education, Inc. All rights reserved. Modern Labor Economics: Theory and Public Policy, Eleventh Edition Ronald G. Ehrenberg Robert S. Smith Table 7.1 Weekly Hours Spent in Household Work, Paid Work, and Leisure Activities by Men and Women over Age 18, 2008

3. Copyright ©2012 by Pearson Education, Inc. All rights reserved. Modern Labor Economics: Theory and Public Policy, Eleventh Edition Ronald G. Ehrenberg Robert S. Smith Figure 7.1 Household Time and Income Are Substitutes in the Production of Commodities Sally Consumes

4. Copyright ©2012 by Pearson Education, Inc. All rights reserved. Modern Labor Economics: Theory and Public Policy, Eleventh Edition Ronald G. Ehrenberg Robert S. Smith Table 7.2 Labor Force Participation Rates and Full-Time Employment, Mothers of Young Children, by Age of Child, 2009

5. Copyright ©2012 by Pearson Education, Inc. All rights reserved. Modern Labor Economics: Theory and Public Policy, Eleventh Edition Ronald G. Ehrenberg Robert S. Smith Figure 7.2 Home versus Market Productivity for a Partner

6. Copyright ©2012 by Pearson Education, Inc. All rights reserved. Modern Labor Economics: Theory and Public Policy, Eleventh Edition Ronald G. Ehrenberg Robert S. Smith Figure 7.3 Life-Cycle Allocation of Time

7. Copyright ©2012 by Pearson Education, Inc. All rights reserved. Modern Labor Economics: Theory and Public Policy, Eleventh Edition Ronald G. Ehrenberg Robert S. Smith Table 7.3 Assumed Social Security Benefits and Earnings for a Hypothetical Male, Age 62 (Yearly Wage = $40,000; Interest Rate = 2%; Life Expectancy = 17 Years)

8. Copyright ©2012 by Pearson Education, Inc. All rights reserved. Modern Labor Economics: Theory and Public Policy, Eleventh Edition Ronald G. Ehrenberg Robert S. Smith Figure 7.4 Choice of Optimum Retirement Age for Hypothetical Worker (Based on Data in Table 7.3)

9. Copyright ©2012 by Pearson Education, Inc. All rights reserved. Modern Labor Economics: Theory and Public Policy, Eleventh Edition Ronald G. Ehrenberg Robert S. Smith Figure 7.5 Labor Supply and Fixed Child-Care Costs: A Parent Initially Out of the Labor Force

10. Copyright ©2012 by Pearson Education, Inc. All rights reserved. Modern Labor Economics: Theory and Public Policy, Eleventh Edition Ronald G. Ehrenberg Robert S. Smith Figure 7.6 Labor Supply and Fixed Child-Care Costs: A Parent Initially Working for Pay

11. Copyright ©2012 by Pearson Education, Inc. All rights reserved. Modern Labor Economics: Theory and Public Policy, Eleventh Edition Ronald G. Ehrenberg Robert S. Smith Figure 7.7 Budget Constraints Facing a Single Parent before and after Child Support Assurance Program Adopted

12. Copyright ©2012 by Pearson Education, Inc. All rights reserved. Modern Labor Economics: Theory and Public Policy, Eleventh Edition Ronald G. Ehrenberg Robert S. Smith Figure 7.8 A Single Parent Who Joins the Labor Force after Child Support Assurance Program Adopted