ECON 211 Lecture Notes - Lecture 26: Motivation, Incomplete Markets
Document Summary
Thursday, november 3, 2016 week 11 day 2. Introduction: oversupply of labor to care elds. Gender specialization crowds women into traditionally female jobs. Cultural bias: jobs lled by women are undervalued: economic vulnerability of these that provide care labor. Long term commitments or contracts characterized by emotional connection, moral obligation, and intrinsic motivation: implicit or explicit agreements, contract: metaphor to help explain the evolution of non market institutions and long term relationships. A contract is a binding commitment that might restrict future choices. There are expectations society has about care and gender norms. People, mainly women, are expected to care for family members or loved ones that require it. This expectation is gendered: women are punished more heavily for breaking this contract. Individual choice is limited by contracts: emergence of contracts, contracts over a long terms can be more ef cient than sport transactions, implicit contracts. Implicit contracts are cheaper than explicit formal contracts.
