an explanation of household formation and composition in developed and developing countries
Open Access
Author:
Miskewicz, Erich Thomas
Area of Honors:
Economics
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
James R. Tybout, Thesis Supervisor James R. Tybout, Thesis Honors Advisor Bee Yan Roberts, Faculty Reader
Keywords:
household formation household composition marriage cohabitation household production
Abstract:
The landscape of households in the United States and much of Europe has been shifting toward smaller households, decreased marriages, and increased divorces over the past century. In the spirit of Gary Becker, this shift in household form can be attributed to the general decrease in relative price of labor saving home appliances. This paper, utilizing survey data from the Living Standards and Measurement Study, analyzes households in Albania to examine the relationship between the price of labor saving inputs into household production and household size. A model was developed that relates household size to consumption per member, mean education, the cost of energy, and the price of labor saving appliances such as washing machines, sewing machines, and dishwashers. There was found to be a significant positive relationship between the cost of washing machines and household size, suggesting that decreased gains from specialization may hold explanatory power even in developing countries.
