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Is it Work?

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This ad from monster.com (a job-search site) caught my eye, a reminder that most people hope for a job that will be intrinsically satisfying. Neoclassical economists generally define work as an activity that is only a means to an end–people presumably work only until the utility of the additional income (or home-produced services) is no greater than the disutility of an additional hour of work.

I’ve never liked that definition, but to my surprise I just read one I liked even less, in a New York Times Freakonomics column published by Steven J. Dubner and Steve Levitt: They suggest the following: “It’s work if someone else tells you to do it, and leisure if you choose to do it yourself.” This definition makes it sound like neither self-employed nor self-motivated individuals do any work.

In a nice response published on the Freakonomics blog, Shoshana Grossbard explains how this definition ignores the kind of work that goes into making dinner for a spouse.

The original Freakonomics piece was inspired by a working paper by economists Valerie Ramey and Neville Francis, who use survey responses regarding subjective feelings of happiness to rank activities as work or leisure. A burgeoning literature explores these subjective rankings, and I’m captivated by a proposal by Alan Krueger and others that we develop more systematic forms of time accounting.

But I think we should make a distinction between subjective and objective measures of work, and come at the issue from both directions. In her classic Economics of Household Production, published in 1934, Margaret Reid argued that an activity should be considered work if someone could, in principle, be paid to perform it. Most time-use surveys either use this so called “third-party” criterion or ask whether an activity creates benefits for someone other than the person performing it.

This objective criterion is no less reasonable than an arbitrary cut-off point on a happiness scale, and provides a better measure of social rather than purely individual benefits. Efforts to revise our national income accounts (which don’t take anyone’s feelings into account) should define non-market work in objective terms.

If we developed National Happiness Accounts on the side, that too would make me happy.


Children as Pets

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This recent New Yorker cover satirizes the notion that children, like puppies in a store window, are just another consumer good. I think the gender stereotyping is intended as a joke, though not all viewers would take it that way.

This children-as-pets notion is deeply embedded in our culture, and I’ve been fuming about it for years (See The Invisible Heart and, more recently, Valuing Children) . Unlike most pets, most children grow up to provide effort, energy, talent and tax revenues that benefit the rest of us. This is one reason why parental efforts deserve public support.

Debates over the economic significance of childrearing have shaped debates over taxation in the U.S. In a classic treatise of public finance published in 1938, Personal Income Taxation, Henry Simons wrote, “it would be hard to maintain that the raising of children is not a form of consumption on the part of parents, whether one believes in the subsidizing of such consumption or not.” (p. 140). In Agenda for Progressive Taxation, published in 1947, William Vickrey wrote

“This reduction of children to a status comparable to that of a household pet is hardly acceptable. Almost everyone will concede that the community has a greater interest in the welfare of children than in the welfare of pets, even though there may be widespread disagreement as the nature of that interest. A more satisfactory approach, on the whole, is to regard minors and other dependents as citizens in their own right.” (p. 292).

Ed McCaffrey’s terrific book Taxing Women points out that the Henry Simons’ view helps explain why child-care expenses aren’t fully deductible from taxes in the U.S. today.

Most economists today stop short of viewing childrearing as a productive contribution. When they talk about “human capital” they typically refer to educational inputs, taking parental inputs for granted. Or, they assign a value to human capital based on its future yield (net present discounted earnings) ignoring its historical cost. Some of these issues are discussed in Chapter 4 of the National Academy publication Beyond the Market (both Robert Michael of the University of Chicago and myself contributed significantly to that chapter).

Every Mother’s Day, the job search site www.salary.com publishes an interesting calculation of how a mother’s activities would be priced in the market. A paper I recently wrote with Jayoung Yoon assigns a very conservative, lower-bound replacement cost value to the time that parents devote to childrearing,(”The Value of Unpaid Child Care in the U.S. in 2003,” forthcoming in Jean Kimmel, ed., How Do We Spend Our Time? Recent Evidence from the American Time-Use Survey). Both offer a good antidote to the trivializing impact of images like the one above.

Servant Sisters

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A guest post by Hande Togrul (handetogrul@yahoo.com), graduate student at the University of Utah:

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Here I am as a seven-year old, dressed up for the first day of school, standing next to my evlat-lik–not my mother, or my aunt, or my sister, but my live-in pseudo sister–my caregiver. In the town of Mersin in Eastern Mediterranean Turkey, where I grew up, evlat-liks were customary members of many households, playing a role similar to that of didis in India, amahs in China, rejevaks in Haiti, or mammies in the antebellum United States. My family did not always treat Bahtiyar abla (abla means elder sister in Turkish) in a kindly way, and I always tried to stand up for her. She joined our household as a six-year old girl to become a domestic worker with few opportunities and little control over her own working conditions.

Both the International Labor Organization and non-governmental organizations like Oxfam and Save the Children are calling attention to the plight of underprivileged women and girls (and some men) around the world working as caregivers and domestic workers. I am conducting dissertation research on this topic in Turkey, and a brief article describing some of my field work, titled “As if she is family: the marginalization of unpaid household workers in Turkey” has been published in Oxfam’s journal, Gender and Development

I go back and forth between the high ground of theory and messy realities of daily life.

I don’t want to demonize or to romanticize my pseudo-sister’s experience. I want to understand its causes and consequences, and develop better policies for care provision.

Child Care Time

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When I took this picture of my friend Gaela (who is a girl, not a cat), was I engaging in photography, child care, or both? What if I stayed at Gaela’s house while her parents stepped out to a party on a Saturday night, spending most of my time curled up on the couch writing a blog entry after she had gone to bed? Would I be providing child care?

Guest blogger Charlene Kalenkoski of the Ohio University Economics Department  is doing research that addresses these questions:

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The introduction of the American Time Use Survey (ATUS) a few years ago spurred research by U.S. economists into the time parents spend caring for their children, a valuable input into the production of child outcomes. But all time is not equal. For example, giving a child your full attention as a parent will have a different impact than just being in the same room with your child while you are watching TV.

Researchers have tried to account for child care of different “qualities” in different ways. One way is to look separately at time spent in child care as a primary activity (child care is the most important activity being done at the time) and child care as a secondary activity (child care is being performed, but some other activity like housework is reported to be the primary activity). Another way is to compare child care as a primary activity and passive child care (the time a parent spends in the presence of a child when child care is not the primary activity-perhaps a parent is watching TV while the child is playing in the same room). A third way is to separately investigate time spent in child care activities that are deemed development-oriented (such as teaching) and those that are not (such as supervising).

Gigi Foster of the University of South Australia, and I propose a fourth way of classifying parental child care time in a working paper soon to be published in Review of Economics of the Household. We propose classifying child care as either sole-tasked (the only activity being performed) or multi-tasked (child care is one of multiple activities being performed simultaneously). In addition to the intensity of child care time, this measure captures variations in the costs to parents of such time. Sole-tasked time has a higher opportunity cost. Our findings show that the classification chosen has significant implications for the determinants of parental child care time.

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I want to add that children can impose supervisory constraints even when they are in another room. Some of my recent research in collaboration with Jayoung Yoon and others (“By What Measure?” and “What is Child Care?”) explores the empirical dimensions of supervisory time. I’m hoping to help organize a session on parental time-use at the upcoming meetings of the International Association for Time Use Research (IATUR) in Sydney, Australia, next December.

Measuring Progress

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I’m in Paris for a meeting of a new Commission on the Measurement of Economic Performance and Social Progress. It’s a city that invites reflections on the past that can make the future shimmer.

Walking down the Rue des Francs Bourgeois in the Marais I recall an essay contest sponsored by a group of learned French scholars in 1759. They asked, “Has intellectual and economic progress contributed to the moral improvement of humanity?” The winner, Jean-Jacques Rousseau (smiling enigmatically on the left), elaborated famously on his basic answer: non!

Today, his answer seems less interesting than their question. Moral improvement will probably not be on the meeting agenda. Economists are much more nervous about measuring economic progress. Richard Easterlin’s paper observing that reported happiness in the U.S. has not increased along with Gross Domestic Product is finally getting the attention it deserves. A spate of books such as Richard Layard’s Happiness document yawning gaps between objective and subjective well-being. A recent paper by economists Betsey Stevenson and Justin Wolfers grabbed headlines simply because its international comparisons held out the slim hope that money might increase happiness a bit, after all.

Neoclassical economists face an especially serious challenge to their assumption that more is always better. But virtually all economists praise Gross Domestic Product (GDP) as though it were another three letter abstraction that begins with G. I sometimes feel agnostic about possibilities for either economic or spiritual progress. But like Pascal, I prefer to wager on the positive.

I’m no economic atheist, but my religion needs reform. Preparing for the meeting, I realize, to my surprise, that the principles I want to nail on the cathedral door are moral ones: 1) We should care about future generations. This implies consideration of natural assets (such as forests and fisheries) and the sustainability of ecological services. 2) We should care about others who are alive today. This implies consideration of poverty and inequality on a global scale. 3) We should care about own capabilities: our health, our education, our self-awareness, more than our own consumption (which appears not to make us all that happy, anyway).

Any new measures of economic progress that redirect our attention away from GDP toward these broader concerns will be helpful. The devils, of course, are everywhere, including in the details.

Cat Care

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Guest blogger Man Yee Kan, Department of Sociology, University of Oxford, pictured here with her cat Sammie, writes:

I came to Oxford from Hong Kong eight years ago as a sociology graduate student and soon after that met my partner Timothy, a philosopher who is also from Hong Kong. Our favourite hobby in Oxford is to visit cats near the canal and in colleges. We treat our cat Sammie like a son.

Why not have a ‘real’ child? We can’t afford it! Our parents are in Hong Kong and cannot come to help out. Private childcare in the UK is too expensive for us. In addition, our parents need our care. In Hong Kong, as in many Asian societies, adult children are expected to provide both financial support and personal care to elderly parents. This responsibility shapes public policies. For example, when we worked in Hong Kong, we received a parental care tax allowance.

My empirical contribution to the GeNet project examines changes in the time use of men and women over the life course and their implications for labour market earnings. Findings show that in the United Kingdom many women quit labour market work or change to part-time jobs after having a child. Accordingly, they increase their time spent on routine housework (e.g. cooking, cleaning, washing the dishes and doing the laundry) and family care and reduce the time on consumption and leisure. Men, on the other hand, tend to stay with full time jobs after having a child. Their routine housework time changes little, although time spent on childcare and non-routine types of housework (e.g. grocery shopping and household repairs) increases significantly (by about 80 minutes per day) after having a child.

Timothy is a good cat carer, so I think he would also undertake a lot of childcare if we had a child. In academic papers, housework hours of husbands and wives are often explained by simple bargaining models, where higher income relative to one’s partner predicts shorter housework hours. In reality, housework and care are intricately intertwined with power, love and feelings of identity.

Some scholars describe career women like me, who have opted for having a cat instead of having a child, as “work-centred” rather than “home-centred.” But my preferences seem to be affected by my environment. When I’m unhappy about my job, I’m more likely to dream about having a baby, and who knows how I’ll feel a year or five years from now… Meanwhile, I’m enjoying Sammie.

When a Commodity is Not Exactly a Commodity

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Every week, the journal Science complements its published articles with one or more “Perspectives” offering a brief and informal summary of research on an important topic. I was thrilled to be invited to submit one of these recently, and chose to focus on the impact of personal interactions and emotional connections on the economics of care services.

Forced to boil down the soup I have been studying for years to a scant page and a half, I was nonetheless pleased with the resulting concentrate, entitled “When a Commodity is Not a Commodity.”

I particularly liked a phrase that came to me late at night while I was responding to an editor’s query–one that offers a kind of funky analogy to the Heisenberg principle that efforts to measure the location of something can change its location. Care work typically involves a kind of exchange that changes the exchangers.

I did not have the time or space to fully develop links to ongoing research in behavioral or experimental economics, and am hoping that my friends, including UMass Economics graduate students Phil Mellizo and Wesley Pech, might be willing to offer some comments on these…

The graphic here is based on a cheap knockoff of a sign I bought from a tourist kiosk at Covent Garden while at a conference in London last weekend. I added the red letters, which effectively convey the main point of the article. Care work motivated by love as well as money, and the interactions between these two are complicated.

I began work on a manuscript now entitled Economies of Care while visiting at the Russell Sage Foundation in 2005-2006. Slow going, but I’m now up to Chapter 6. I gave a presentation based on this at the GeNet conference I attended in London and will soon post a description of that event along with the bare bones of my powerpoint presentation.

Justin Care

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Most debates over family policy in the U.S. focus on comparisons with Europe, Canada, or Australia. But so much is happening in East Asia! The rapidity of fertility decline in Korea –combined with the mobilization of women’s groups there–has led to major new government initiatives. I had the opportunity to learn more when I participated in a Women’s World Conference in Seoul in 2005, but I’m no expert on this area of the world. I asked one of my Korean graduate students, Jayoung Yoon, to tell me more.

Jayoung will soon be returning to Seoul to begin working for the Korea Labor Institute, taking her 17-month old son Justin (pictured here) with her. How will child care there compare with what has been available here at UMass Amherst? Our University Child Care Center doesn’t accept babies under 15 months of age, and has a long waiting list, so Jayoung has relied on informal assistance–the elderly parents of another foreign student are looking after Justin during the day while she works on her dissertation. She may also rely on informal assistance in Seoul, where many Korean Chinese (known as Chosun-jok) are willing to work as live-in nannies. However, the Korean government now provides generous subsidies for child care, with fees based on a sliding scale. A large percentage (80%) of all children are subsidized. The policies have a pronatalist structure, with lower fees for second and third children. Families with more than 3 children also enjoy priorities when they apply for housing.

Perhaps Justin will report back on his experiences. Meanwhile, the Ministry of Gender Equality in Korea, recently merged with the Ministry of Health and Welfare in Korea maintains an English-language website with some interesting details about evolving policies. New parents in Korea currently enjoy 90 days of paid maternity leave at about $500 per month financed through employment insurance.  National health insurance covers every citizen in principle, but may not be completely universal in practice, as some cannot afford to pay the required contributions. Yeong-Ran Pak of the Department of Social Welfare at Kangman University has written an interesting article titled “Gender Dimensions of Family Policy in Korea.”

Jayoung herself has been exploring both time allocation in Korea (using the Korean Time Use Survey) and the relationship between gender norms and the distribution of housework. Korea has recently agreed to contribute national survey data to the Luxembourg Income Study (LIS) Wave 6, which should provide new opportunities for comparative international analysis.

Lands of Possibility

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The social democracies of Northwestern Europe offer many varieties of inspiration for the United States. My favorite analysis of progressive family policies remains Janet Gornick and Marcia Meyer’s Families that Work (Russell Sage, 2003). It addresses issues of gender equality as well as child wellbeing and develops a nicely balanced proposal for combining expansion of  publicly provided child care with paid family leaves and increases in paternal participation in childrearing. Plus, it actually explains how this could happen and what it would cost.

Sociologist Erik Olin Wright at the University of Wisconsin organized a conference around the Gornick/Meyers proposals as part of a series of projects envisioning “Real Utopias.” The interdisciplinary discussion was terrific (see the conference website), and is leading up to a special issue of the journal Politics and Society and an edited volume to be published by Verso. An essay that I wrote for this project emphasizes the need to go beyond family policy to a broader project of rethinking and restructuring the care economy as a whole. Erik keeps pushing me to get more specific. I’m trying!

Meanwhile, international discussions of family policy provide rich food for thought. The Organization for Economic Cooperation and Development has published a comprehensive report called Babies and Bosses (Europeans seem really worried about below-replacement fertility rates and the need to get more mothers into paid employment). The Australian Human Rights and Equal Opportunity Commission has published two terrific reports that provide a model for discussions that should be taking place in more countries: Striking a Balance and It’s About Time: Men, Women, Work, and Family. 

Also worth noting are recent changes in family policy in Korea, another country worried about below replacement fertility rates. Since I now have TWO brilliant Korean graduate students working with me, I’m trying to talk them into writing a guest blog on what is going on there. I’m also writing to friends in Taiwan and Japan to see what they have to say….

Buying Care

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At a Women’s World conference in Korea two years ago some community artists laid out a large piece of canvas on smooth ground, along with pencils, markers, and paints for passersby to express themselves. The resulting piece of collective art was tapestry-like, with a layered intricacy exceeding that of most renegade graffiti.

My camera framed one particular rectangle within it that featured a heart outlined in red paint, the word “love” printed in red crayon, and the word FREE painted in large pink capitals. Two smaller hearts, in pink and sky blue, are evident, a mysterious letter R, some numbers, patches of dark blue, several yellow swirls, and other background scribbles. Something complicated but compelling is pictured here.

This photograph introduces my comments on Viviana Zelizer’s recent book, The Purchase of Intimacy, a masterpiece of qualitative reasoning about quantitative things. Much of economic sociology bears the imprint of the University of Chicago’s most Rational Economic Man. Viviana cleans the slate and turns the tables, explaining how this man’s picture of exchange oversimplifies our lives. We all use money to buy things. But our uses can have different meanings and, as a result, different consequences.

Standard economics relies heavily on a polarity called “for love OR money.” Individuals are assumed altruistic within families but selfish within markets. “Work” is defined as an activity performed only in return for money. The bright conceptual line creates an illusion of separate territories. Look closer, however, and the boundaries begin to fade.

The Purchase of Intimacy offers important examples of transactions that involve both love and money. It reveals a complex interface between market and non-market activities. Like the new behavioral economics influenced by the work of Dan Kahneman and other psychologists, it demonstrates the impact of contexts and frames on individual decisions.

I value Viviana’s critique of the “hostile worlds” hypothesis. While my research often takes a more quantitative turn, I too argue that many transactions lie somewhere on a continuum characterized by surprising combination of calculation and affection. I emphasize the impact of emotional connection on the quality of paid care services and also develop estimates of the economic value of unpaid care services.

Yet I am less optimistic (or perhaps just less cheerful) than Viviana about the ways in which this continuum, this spectrum, is evolving. As markets expand, so too does our ability to interpret and mediate them. But market expansion often has dislocating effects on those who lack sovereignty within it—not just children, the elderly, the sick or disabled, but all those who lack adequate independent access to human and financial capital.

You can read the full version of this article in Word format. Or you can read a PDF version published in Accounts, the Economic Sociology Newsletter in Spring 2007 (along with comments from other scholars on Viviana Zelizer and a response from her). You can view or download a powerpoint presentation that illustrates this article here.