Spatial behaviour of rural consumer households in highly developed economies. Survey results for Western Germany

This contribution attempts to identify effects of residential location of rural family households on their economic behaviour. Economic behaviour is understood to be reflected in the total spectrum of income and allocation of household resources. A holistic approach must go beyond activity on the labour and consumer markets and include non-market (‘informal’) activities of household members, taking into account domestic production of goods and services, interaction within social networks, the use of public commercial infrastructure, etc. The cost of living depends, among other things, on patterns of consumption, on regional price levels for consumer breadbaskets, as well as on costs involved in reaching public and commercial points of distribution. These factors result themselves from the interplay of economic forces giving rise to identifiable ‘economic territories’ and ‘market areas’ and ultimately to observable consumptive behaviour and ‘activity spaces’ of individual private households. Since data was available only for our rural survey households, comparative analysis of locational aspects was limited to consumption expenditures for which data could be found in administrative statistics for households in urban and periurban areas. The rural survey sample was found to have a higher average level and a different structure of expenditures when compared with their non-rural counterparts. At the same time, a preliminary effort was made in our own rural survey sample to determine the importance of non-market consumption for rural households. This included household consumption of domestic self-services (‘housework’), the utility value of owner-occupied dwellings, do-it-yourself production of substitutes for commercial goods and services, and exchanges within social networks. Results of this initial investigation of non-market elements of the household economy indicated that they were very important for the household's level-of-living and that they had a potential for compensating inequalities due to different degrees of access to market resources. Household strategies for optimizing their resource allocation to both market and non-market consumption were also examined. In general, ‘objective’ criteria and ‘subjective’ assessments by the survey households with respect to living conditions in rural Western Germany were found to give a positive image of rural life; however, differences in resource allocation strategies for market consumption between urban and rural households having been confirmed above, the question remains for future research about possible locational differences in household acquisition and use of non-market resources.     

Effects of family livelihoods on household resource allocation in highly industrialized society

This contribution attempts to identify effects of the type of livelihood of rural family households on their economic behaviour. Economic behaviour is understood to be reflected in the total spectrum of income and allocation of household resources. A holistic approach must go beyond activity in the labour and consumer markets and include non-market (‘informal’) activities of household members, taking into account domestic production of goods and services, interaction within social networks, the use of public and commercial infrastructure, etc. Our study of resource income and allocation as a function of the household's livelihood undertook a comprehensive investigation of both market and non-market resources of the sample households. Results for full- and part-time farming family households, as well as for employee and self-employed households in the non-farm sector were compared. All survey households were comprised of four persons with an ‘intermediate’ level of family income living in disadvantaged rural areas. Apparent, but yet unquantified differences between these socio-professional groups, e.g. with regard to time-inputs into gainful activity, to regularity of income, and to joint accounting of the family and the firm/holding in self-employed households, had lent support to the hypothesis that there are marked differences in resource income and allocation strategies between these socio-professional groups. Survey results revealed, in quantitative terms, large workloads involved with self-employment, fringe benefits from dependent employment and, on the other hand, side-benefits from self-employment, such as the use of business stocks for private consumption. Compensatory effects of the disposition and use of non-market resources with regard to lower incomes was observed, as well as considerable differences between the socio-professional subsamples in strategies for and amounts of capital formation and social security. Furthermore, productive roles within the household, and the household's interaction with its social networks and other public and semi-public entities differed strongly between the socio-professional groups. Variance analysis disclosed that the findings on the above described differences in resource income and allocation between the socio-professional subsamples were statistically highly significant.     

Household production time by sex and employment status: a cross-national comparison between Finland and the U.S.A.

Two time-budget studies, from Finland and the U.S.A., were examined across nations and across sexes with regard to household production time in two parent, two-child households. Time-use difference in various household activity categories (basic housework, child- and member-care, maintenance, and shopping and management) were analysed according to respondents' employment status. Three-way analysis of variance revealed that all three variables, nationality, sex and employment status made a significant difference in the time-use mean scores. Part-time employed Finnish men allocated more time to household production than other Finnish men. The equality ratios confirmed that women in both countries carry the heaviest burden in the house-hold work, especially in traditionally female basic housework tasks. In Finnish households the equality ratios were consistently smaller than in the U.S. households indicating a more egalitarian division of household work. Implications for future cross-national time-use research including gender issues are discussed.     

A New Look at Husbands' and Wives' Time Allocation

The impacts of economic and non‐economic factors on husbands’ and wives’ market work time and housework time are estimated using 13 years of data from the Panel Survey of Income Dynamics. Several limitations in earlier studies are addressed, and a unique feature of the study is the direct estimation of effects on time allocation from changes in the prices of market‐produced goods and input goods in household production. Many of the findings of earlier studies are reconfirmed, but new insights are also explored. Husbands and wives respond similarly in their time allocations to changes in input goods prices, but their responses are different to changes in market goods prices.     

Revealing Entrepreneurial Talent

A society’s allocation of working time to entrepreneurial, organizational and learning activities is the main factor behind technical change and economic growth. Building on Lucas (1978) and Kihlstrom and Laffont (1979), in this paper I offer evidence that the amount of working time spent by small business owners in entrepreneurial activities affects the performance of the business and reveals their entrepreneurial talent. The intuition is that it is reasonable to allocate more of our time to those activities where we realize we are more productive. As actual consumption choices reveal consumer preferences, the varying entrepreneurial content of the activities performed is a signal of an individual’s ability as entrepreneur. The results obtained suggest that the allocation of working time by small business owners: (a) throws light on their behavioral patterns; (b) is related to the owner’s human capital and to firm size; and (c) has a significant correlation with business performance. The main finding of my analysis, confirming previous studies on this topic, is that education is an important part of entrepreneurial human capital. Moreover, the latter is the main factor that can sustain small firms’ competitiveness in a globalizing economy. The entrepreneur is at the same time one of the most intriguing and one of the most elusive characters in the cast that constitutes the subject of economic analysis (Baumol, 1965, p. 64). I would like to acknowledge valuable comments from T. Cameron, G. Gagliani and two anonymous referees. The usual disclaimer applies.     

Rural-urban differentials in children's household production time

This research examined the amount of time rural and urban children spent in household production activities, and several demographic factors related to that time use. Data were obtained from a multi-state family time-use survey, NE-113 ‘Use of Time in Rural and Urban Families’. Home interviews were conducted with 2,100 families in II states. The sample consisted of 1,045 rural children and 1,026 urban children, aged 6–17. The hypothesis, that the differentials in time spent in household production by rural and urban children will be due to assignment of tasks by sex, was confirmed. Boys spent similar amounts of time in housework regardless of place of residence, while rural girls spent more time than urban girls.     

Family resources related to wife's time inputs to housework

This study investigates the relationship of family resources to the wife's time spent in housework. Safilios-Rothschild's inventory of resources was used as a guide in selecting variables to understand utility maximization in time use. Results indicate that the number of hours the wife spent in housework increased as the number of hours spent working outside the home decreased, family size increased and her perception that income was adequate decreased. More time also was spent if she had a chronic health condition which worried her. Implications discussed included those for further research to investigate the relationship of sex roles to housework attitudes and behaviours.     

Sex, Personality, and Sustainable Consumer Behaviour: Elucidating the Gender Effect

Sustainable consumer behaviour—behaviour motivated or influenced by social and/or environmental considerations—is an important topic in public policy and consumer psychology. Research on the antecedents of sustainable consumer behaviour has found a robust “gender effect”: women are more likely than men to express concern about consumption’s broader impacts and to act upon those concerns. The mechanisms underlying the gender effect have not been well elucidated. At the same time, more limited research has found that sustainable consumer behaviour is also influenced by personality: more agreeable and more open consumers are more likely to place importance on and to act on social and environmental concerns. Separate research in personality psychology has shown that women tend to be more agreeable than men. The authors integrate these findings to propose and test a model in which personality mediates the effect of sex on sustainable consumer behaviour. The personality differences mediating this effect are the same ones elsewhere subsumed within “gender” differences. Our findings clarify the mechanisms underlying the observed sex effect, confirm the utility of personality constructs in clarifying differences in consumer attitudes and behaviours, and have compelling implications for public policy.     

Education and the empowerment of women in household decision‐making in Spain

It was analysed whether investment in the education of both women and men serves to empower wives resulting in more balanced household decisions being taken on matters related to consumption and financial management. They considered that household decision‐making could be made by mainly the wife, mainly the husband or the couple acting jointly. They then applied multinomial probit models to the Spanish Living Conditions Survey of 2010. Results show that, when controlling for demographic, family and labour market characteristics, the level of education of both the husband and wife has a positive effect in terms of a more egalitarian decision‐making process in relation to three areas of expenditure: daily shopping, expensive purchases of consumer durables and significant expenditure on children. However, only women's education has a positive effect on borrowing money and no effect of education is observed with regard to the use of savings. Results are less conclusive for households where decisions are taken primarily by the wife or husband, since men's education increases the role of husbands in the household making‐decision process whereas no effect of wives' education is observed.     

Developing Policies and Instruments for Sustainable Household Consumption: Irish Experiences and Futures

In recent years, the concept of sustainable consumption (SC) has received increased attention. Overconsumption in industrialized countries still presents major challenges to achieving sustainable development goals despite the global economic crisis. This paper offers an in-depth analysis of national influences on consumption patterns in the Republic of Ireland, focusing in particular on the role of governance in the design of policy instruments for sustainable consumption. It is argued that country-specific political conditions and policy frameworks fundamentally shape everyday household consumption. After an initial discussion of the effectiveness of three key types of policy instruments—legislative, economic, communicative—the paper compares SC policy making and implementation in Ireland with examples of good practice from Europe. An agenda to progress Ireland’s sustainable consumption policy framework is proposed in the concluding part of the paper.     

Production of (Pleasant) Time by Means of (Unpleasant) Time: Some Notes on Consumption Theory and Time Use

The aim of this paper is to propose an analytical framework wherein the individuals' choice problem is addressed in terms of alternative time‐consuming activities rather than alternative bundles of goods and services. In particular, the paper reverses Becker's (1965, The Economic Journal, 75 (299), pp. 493–517) proposal to approach the problem of time allocation by transforming the time spent in consumption into foregone earnings. The result of reversing Becker's approach is a model that represents each activity as a sort of productive process allowing pleasant time to be produced by consuming ‘direct’ unpleasant time plus the ‘indirect’ amount of unpleasant time equivalent to the market goods used up as inputs.     

Children’s Labor Market Involvement,Household Work,and Welfare: A Brazilian Case Study

The large numbers of children working in developing countries continue to provoke calls for an end to such employment. However, many reformers argue that efforts should focus on ending the exploitation of children rather than depriving them of all opportunities to work. This posture reflects recognition of the multiplicity of needs children have and the diversity of situations in which they work. Unfortunately, research typically neglects these complexities and fails to distinguish between types of labor market jobs, dismisses household chores as irrelevant, and conceptualizes children’s needs largely in terms of the education they require for successful careers. Based on data collected in schools in Franca, Brazil, where children often combine school with work in the shoe industry, this study first examined the implications of labor market jobs and household work for their health, life satisfaction, and education. Analyses suggested that both forms of work negatively affected children’s welfare, but the effects of household work were more extensive, especially for girls. The second part focused on children with labor market jobs and examined how facets of their jobs as well as their after-work household duties affected their welfare. A lack of discretion on the job undermined the health of both boys and girls, higher pay adversely affected boys’ education, and housework had detrimental effects on all indicators of girls’ welfare. This paper discusses the implications of these findings for further research and suggests the needs for attention to different forms of work activities within families. It concludes with suggestions for multinationals sourcing in developing areas that go beyond the usual calls for ridding their facilities and supply networks of child workers.     

Who buys newspapers in Spain? An analysis of the determinants of the probability to buy newspapers and of the amount spent

In this paper, we examine the determinants of household consumption of newspapers and the amount spent on their purchase by considering several explanatory variables related to household characteristics and the main household wage earner. Results show that the variables have quite similar effects on both the relative probability of buying newspapers and the amount spent. The key variables are the age and occupational status of the main wage earner, the number of household members, income and having to pay for the house, as well as a number of geographical variables. However, certain differences are also observed. The most important is the education of the main wage earner: while its effect on buying newspapers is very small (only those who did not complete primary education are less likely to buy), its effect on the amount spent increases with the level of education. As other studies of cultural goods and services consumption have suggested, education and occupational status are more relevant determinants than income.     

In Search of the Harried Leisure Class in Contemporary Society: Time-Use Surveys and Patterns of Leisure Time Consumption

In trying to understand the contemporary work-leisure paradoxes, we go in search for today’s harried leisure class and its equanimous counterpart. We apply the relative new method of optimal matching on the continuous time-use data of the pooled Flemish time-use survey of 1999 and 2004, in order to identify different time-use patterns based on one’s leisure time consumption. We then analyse these time-use patterns by combining a multiple classification analysis with socio-demographic measures and (leisure) time-use characteristics, which allows us to identify today’s harried leisure class on the one hand the opposite “equanimous leisure class” on the other hand. It turns out that the members of today’s harried leisure class combine a great amount of cultural and material resources with the experience of time pressure and voracious and volatile leisure time consumption, whereas the members of the equanimous leisure class mainly consume their leisure time in front of the TV. Typifying these groups based on their consumption characteristics provides useful evidence for the integration of time use in the research field of consumer policy.     

Gender differences in consumers’ acceptance of genetically modified foods

Research has shown that women are less accepting of genetically engineered products than men. We expect two mechanisms to be at work here. First, in consumer behaviour theory, more knowledge is assumed to lead to more acceptance. We assumed that for genetically engineered foods, this general principle does not apply since long‐term consequences are not known yet. The well‐informed consumer is likely to be comparatively more concerned with this lack of knowledge. We call this the information paradox. Theory on the topic is relatively recent. The results of this study will help to distinguish consumer behaviour with regard to new types of food as compared with traditional foods. Second, we assumed that there is a gender factor included in attitudes toward foods. In general, women still plan food and household purchases. A tentative attitude and an accompanying reluctance toward food innovation are adopted when buying food for children. We call this the gender paradox. In this exploratory study we use data from the Eurobarometer. Eurobarometer surveys have been executed since 1973 by the European Commission among the adult population of European Union member countries (n > 10 000), monitoring the evolution of public opinion. Analysis of these surveys shows that gender differences exist in the acceptance of genetically modified (GM) foods in Europe. Women tend to be less accepting toward genetically modified foods. This supports our gender hypothesis. However, no evidence was found to support the assumed information paradox. It seems that knowledge leads to acceptance, also of GM foods, but more so for men than for women.     

Alasdair Macintyre’s Aristotelian Business Ethics: A Critique

This paper begins by summarizing and distilling MacIntyre’s sweeping critique of modern business. It identifies the crux of MacIntyre’s critique as centering on the fundamental Aristotelian concepts of internal goods and practices. MacIntyre essentially follows Aristotle in arguing that by privileging external goods over internal goods, business activity – and certainly modern capitalistic business activity – corrupts practices. Thus, from the perspective of virtue ethics, business is morally indefensible. The paper continues with an evaluation of MacIntyre’s arguments. The conclusion is drawn that MacIntyre’s critique, although partially valid, does not vitiate modern business as he claims. In short, modern business need not of necessity be antithetical to individuals’ pursuit of internal goods within practices.     

An assessment of the effectiveness of the monetary dialogue on the ECB’s accountability and transparency: A qualitative approach

The European Central Bank has been seen by some observers as lacking transparency and accountability. The following article examines whether the monetary dialogue between the European Pariliament’s Committee on Economic and Monetary Affairs (ECON) influences the ECB’s behaviour in this regard. This is done by comparing the issues raised by the ECON and its panel of experts and the changes in the ECB’s procedures and arrangements.     

Family Composition,Parental Time,and Market Goods: Life Cycle Trade-Offs

The present study supplements Canadian consumer expenditure survey data with unique time use data to analyze family life cycle decisions regarding allocation of full income to market purchased consumption goods, home production, and leisure time. Results confirm that young children's presence causes families to increase their shares of full income allocated to home production and to decrease the shares of full income allocated to leisure. As a share of full income, expenditures for market goods steadily increase while expenditures for women's home production diminish as children age.     

Comparing sustainable consumption patterns across product sectors

In this paper, we present findings from two qualitative studies where we explored sustainable consumption practices through examining consumers' information search and decision-making processes for recent purchases of five categories of goods/services: fast moving consumer goods (such as foodstuffs and household products), white goods (such as fridges and washing machines), small electrical products (such as TVs and computers), green energy tariffs (such as electricity from renewable sources) and tourism (such as flights). This research has provided us with a set of rich data which explores the nature and extent of sustainable consumption practices across different product sectors. A comparative analysis has allowed us to draw out patterns of consumer behaviour for different product and service types. Our findings suggest that even the same green consumer will not use the same information sources or decision-making criteria, consider the same options or focus on the same industry actors, for products in different sectors. However, we have identified some degree of consistency in purchases within sectors. We present these sector-specific patterns of consumer behaviour and highlight differences in the criteria utilized and the research norms in each sector.     

Drivers of Environmental Behaviour in Manufacturing SMEs and the Implications for CSR

The authors use empirical research into the environmental practices of 31 manufacturing small and medium-sized enterprises (SMEs) to show that ‚business performance’ and ‚regulation’ considerations drive behaviour. They suggest that this is inevitable, given the market-based decision-making frames that permeate and dominate the industry in which manufacturing SMEs operate. Since the environment is a pillar of corporate social responsibility (CSR), the findings have important implications for CSR policy, which promotes voluntary actions predicated on a business case. It is argued that this approach will not alter the behaviour of manufacturing SMEs significantly because CSR practice will be regarded as an optional and costly ‚extra’ affecting core business activity. Consequently, the use and development of existing regulatory structures, providing minimum standards for many activities covered by CSR, remains the most effective means through which the behaviour of manufacturing SMEs will be changed in the short to medium-term. Another feature of the paper is the distinction made between ‚business performance’ and the ‚business case’ argument. Business performance emphasises cost reductions and efficiency whereas the business case accentuates the benefits to shareholders of good practices as their firms become more attractive to stakeholders and society. Manufacturing SMEs␣try to improve business performance because of the pressures placed on them by market-dominated decision-making frames. These frames do not encourage manufacturing SMEs to undertake voluntary actions for the benefit of wider stakeholders and society.David Williamson is Senior Research Fellow in the area of Corporate and Environmental Responsibility at the School of Law, University of Manchester, UK. He has conducted extensive empirical studies into, and written papers on, the environmental behaviour of small and medium sized enterprises. He is also Chair of INDECO, a national body that coordinates sustainable development work on business parks.Gary Lynch-Wood is a Lecturer at the School of Law, University of Manchester, UK. His research focuses on regulation, particularly the impact that regulation has on small and medium-sized enterprises. He teaches a variety of subjects including regulation, environmental law, corporate responsibility and legal methods. He was a Director of the Centre for Research into Corporate Responsibility and the Environment prior to his move to the University of Manchester. John Ramsay is a Reader at the School of Business and Law, Staffordshire University, UK. He has had a number of careers including a decade spent working in the Purchasing Function of a large British component supplier to the European car industry. He teaches a variety of subjects including South East Asian economic development and Negotiation. He is widely published in the Purchasing field with practitioner papers dating back to the 1970s when he was junior buyer, developing in more recent years into academic work in his research area of Buyer–supplier interaction.