Core sphere

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Within the field of microeconomics, the "core sphere" of the economy consists of households, families, and community groups that organize the many important economic activities central to sustaining human life. [1] Neva Goodwin of Tufts University outlines the functions of the core sphere to include:

These human resources make up the core sphere of the economy, and they play significant roles in our lives. It was noted by Goodwin that if a monetary value were placed on the work generated by the core sphere in the United States, it would add to approximately $3.9 trillion and would account for approximately 30% of the total product.

Long before the Industrial Revolution, the core sphere was the entire economy. Families and communities provided for themselves by hunting and gathering. Then with industrialization came a market of competitive men working for wages and along with it what historians call the cult of domesticity. The core sphere became regarded not as part of the market sphere of the economy but more as emotional and altruistic behavior. Therefore, activities in the core sphere were not considered economic because they do not directly influence the market economy. As time has progressed towards the present, organizations such as daycare centers, nursing homes, and household cleaning businesses began to exist as paid jobs.

But the cult of domesticity still lingers on in present day. The Bureau of Labor Statistics published data in 2010 showing that women on average spend .72 more hours than men doing household activities and .34 more hours taking care of household members. The data showed than men on average spend 1.15 more hours working than women and also .75 more hours on leisure activities. [2]

The distinction of the core sphere as a noneconomic sector of the economy has its drawbacks. Care work is a term that stands for tasks done in the service of others, and it does not have any direct economic payoff. Nancy Folbre discusses “the care penalty” in her book The Invisible Heart. She explains that care work is risky because it is done for people who are not obligated to return the favor. [3] It has opportunity costs because a person who performs care work is potentially sacrificing paid work. The monetary value of care work is often weighted by its replacement cost. The unpaid work that makes up the core sphere of the economy creates social wealth, and at the same time subsidizes patriarchy and private wealth [4]

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Care work

Care work is a sub-category of work that includes all tasks that directly involve care processes done in service of others. It is often differentiated from other forms of work because it is considered to be intrinsically motivated, meaning that people are motivated to pursue care work for reasons other than financial compensation. Another factor that is often used to differentiate caring labor from other types of work is the motivating factor. This perspective defines care labor as labor undertaken out of affection or a sense of responsibility for other people, with no expectation of immediate pecuniary reward. Regardless of motivation, care work includes care activities done for pay as well as those done without remuneration.

Work intensity is defined as activity in relation to the capacity for that work. It is a topic that affects developed and developing countries in different ways. There are many aspects to work intensity including multitasking, time poverty, health implications, and policy considerations. Multitasking is the overlap of many activities, usually care and informal work, that negatively impacts the livelihood of people, especially women, in the developing world. Time poverty is defined as the lack of time for leisure and rest activities after time spent working. High work intensity coupled with multitasking and time poverty has a negative correlation with health outcomes. Work intensity is seldom considered when proposing new policy and legislation. As more women enter the workforce, work intensity and its implications are being brought to the forefront of policy, development, and empowerment debates.

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The valuation of nonmarket housework comprises attempts to attach value to non-exchange domestic tasks. Housework may include a variety of activities, particularly those traditionally associated with housekeeping, along with child care and nurturing. These activities have recognizable economic and social significance, but are not included in standard economic measurements, such as the gross domestic product (GDP). While the symbolic or subjective benefits of housework are difficult to measure, various attempts have been made to attach value to economically productive household activity.

Neva Goodwin Rockefeller, known professionally as Neva Goodwin, is co-director of the Global Development And Environment Institute (GDAE) at Tufts University, where she is a research associate at the Fletcher School of Law and Diplomacy and director of the Social Science Library: Frontier Thinking in Sustainable Development and Human Well-Being.

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Gross household product (GHP) is a specific estimation of the economic value added by the unpaid work and capital of households. It does not include many of the additional factors typically included in GPI determinations but focuses specifically on the "household economy". Per Jeremy Greenwood et al., GHP is overlooked by many people and seen as unimportant.

References

  1. ↑ Goodwin, Neva. "Microeconomics in Context." Chapter 15, pp. 350-359. 2009.
  2. ↑ United States Department of Labor Bureau of Labor Statistics. "Time Spent in Primary Activities, 2010.
  3. ↑ Folbre, Nancy. "The Invisible Heart: Economics and Family Values." Chapter 2, p. 3. New York, New Press. 2001
  4. ↑ Elson, Diane. "Unpaid Work: Creating Social Wealth or Subsidizing Patriarchy and Private." pp. 1-2. 2005.
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