The Value of Time Spent in Home Production

Abstract . For a variety of reasons the monetary value of time spent in home production, expecially by housewives, is of interest to lawyers, economists, sociologists and various other groups in society. By convention, economists value this time on the basis of the wage paid to a hired replacement. The model developed in this paper shows that this approach requires general assumptions concerning the nature of work and home production which are unduly restrictive and frequently contrary to observation. As a result, the conventional methodology cannot be adapted to individual circumstances and consequently yields misleading results. By contrast, the methodology suggested here can be applied on a case by case basis.