American Economic Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Does Home Production Drive Structural Transformation?
American Economic Journal: Macroeconomics
vol. 9,
no. 3, July 2017
(pp. 116–46)
Abstract
Using new home production data for the United States, we estimate a model of structural transformation with a home production sector, allowing for both non-homotheticity of preferences and differential productivity growth in each sector. We report two main findings. First, the estimation results show that home services have a lower income elasticity than market services. Second, the slowdown in home labor productivity, which started in the late 70s, is a key determinant of the rise of market services. Our counterfactual experiment shows that, without the slowdown, the share of market services would have been lower by 7.5 percent in 2010.Citation
Moro, Alessio, Solmaz Moslehi, and Satoshi Tanaka. 2017. "Does Home Production Drive Structural Transformation?" American Economic Journal: Macroeconomics, 9 (3): 116–46. DOI: 10.1257/mac.20150109Additional Materials
JEL Classification
- D13 Household Production and Intrahousehold Allocation
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- L16 Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
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