The theory of home production is one of the central themes of the
'new' labor economics. Since the mid-1980s, the greatest
contribution of the theory has been a better understanding of
consumption behavior and changes in labor supply over the business
cycle. One of its major points is that the analyses of both consumption
behavior and time use are not to be separated as both are determined by
the demand for home activities and by the technology of home production.
More importantly, the theory of home production showed that economic
considerations are as vital in the home sector as in the market.