— Ch. 1 · Early Economic Roots —
Family economics.
~4 min read · Ch. 1 of 6
Adam Smith wrote in The Wealth of Nations that wages must be high enough to support a family. He argued that without this, the race of workmen could not last beyond the first generation. Thomas Robert Malthus added his theory of population growth in 1798. He claimed that when wages rise, laboring families tend to have more children. This increase in population eventually reduces wages again. Friedrich Engels published The Origin of the Family, Private Property and State later. He viewed the monogamous family as something created by the class system. Engels expected monogamy to disappear with the demise of capitalism. He believed full freedom for women would only happen under socialism. Early marginalists like Léon Walras ignored household production entirely. They focused on market transactions instead. Stanley Jevons and Alfred Marshall also moved focus away from the home. Their basic economic unit was either the individual or the household. When they took the household as the unit, they did not study internal decisions.
New Home Economics Rise
Gary Becker introduced the concept of household production functions in the 1960s. His article A Theory of Allocation of Time became foundational for the field. Theodore W. Schultz captured aspects of family important for the whole economy. Schultz emphasized the production of human capital through investing in children. Jacob Mincer also helped found what is now called New Home Economics. These economists studied how members allocate time between market work and household work. They analyzed consumption decisions within the family unit. Contemporary family economics has been enriched by contributions from Marxists since the 1970s. Radical feminists added their focus on gender and patriarchy during this same period. Marxist-feminists subsequently sought to integrate these two approaches together. They tried to show how patriarchy and capitalism interact with each other. The household production function remains a main approach in the 21st century.