The Supply of Labour and Household Production

  • João R. Sanson
Part of the AIEL Series in Labour Economics book series (AIEL)


Labour supply is seen as an output from household production. Given the physical effort of a person, working in the market also requires specific inputs. This process may be described with the help of a joint-production technology, where at least one of the outputs is labour supply. With the help of a simplified version of the model, the choice among different types of market work is initially discussed. Within this discussion, it is shown how different estimates of the opportunity cost of time naturally appear. Then, the definition of net result of the worker is related to economic rent due to the fact that the consumer–producer cannot alter the time endowment. As a result, the household production model, including labour supply, might be more amenable to integration into general equilibrium theory and microeconomic theory in general.


Production Function Labour Supply Opportunity Cost Preference Function Reservation Price 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.



The author thanks Idaleto M. Aued, José Rubens D. Garlipp, Pedro H.V. Mendes, Jean-Luc Rosinger, Joseph Lacey, Luciana T.Sanson, and Fernando Seabra for suggestions during the research. He thanks the National Council for Scientific and Technological Development (CNPq), from Brazil, for a grant that also included research assistance from Michael Ax Wilhelm and Antonio M. Fontoura.


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Copyright information

© Physica-Verlag Heidelberg 2009

Authors and Affiliations

  • João R. Sanson
    • 1
  1. 1.Department of EconomicsFederal University of Santa CatarinaFlorianopolisBrazil

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