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Unlock This CourseFamilies play several important roles in society and one of the most significant is their economic function. This refers to how families produce, distribute and consume resources and how they contribute to the wider economy.
Key Definitions:
Families pool resources to buy food, housing, clothing and other necessities. They make joint decisions about spending and saving. Companies often target families rather than individuals in their marketing, recognising them as important economic units. Families also pass on consumption habits to children, teaching them about money management and consumer choices.
Historically, families produced most of what they needed (food, clothing, tools). Today, family members typically work outside the home to earn money, but families still produce services like childcare, cooking and home maintenance. In some societies, family businesses remain common, with members working together to generate income.
The economic role of families has changed dramatically over time, particularly since the Industrial Revolution. Understanding these changes helps us see how family structures adapt to economic conditions.
Before industrialisation, most families functioned as economic units where:
In 18th century Britain, a typical farm family would work together as an economic unit. The father might manage the farm and do heavy labour, while the mother would tend to poultry, make butter and cheese and manage the household. Children would help with age-appropriate tasks like gathering eggs or scaring birds from crops. The family produced most of its own food, made clothing from wool or flax they grew and perhaps sold surplus at local markets. Their economic survival depended on cooperation and the contribution of all family members.
The Industrial Revolution (approximately 1760-1840) dramatically changed family economic functions:
Today's families typically earn money through employment outside the home. They pool resources to pay for housing, food, education and other needs. Many families have dual incomes with both partners working. Economic decisions are often made jointly.
Families still produce significant economic value through unpaid work like childcare, cooking, cleaning and home maintenance. This work, often performed by women, contributes to the economy but isn't counted in GDP. The value of this unpaid work is estimated at 10-39% of GDP in different countries.
Families teach children about money, work and economic values. They pass on attitudes about saving, spending and financial responsibility. Research shows that children's financial habits are strongly influenced by what they observe in their families.
The economic function of families varies across cultures and social classes. These differences reflect broader social and economic structures.
In many non-Western societies, extended family networks remain important economic units. For example, in parts of Africa and Asia, resources are often shared among larger family groups. Family businesses are common in many cultures, from Italian restaurants to Korean corner shops. Some cultures emphasise collective family economic interests over individual pursuits.
Working-class families may rely more on extended family for childcare and financial support. Middle-class families often focus on investing in children's education and future careers. Wealthy families concentrate on preserving and transferring wealth across generations. Economic pressures and opportunities shape family decisions differently across classes.
Family businesses represent an important economic function where production and family life remain closely connected. In the UK, family businesses make up about 85% of all private sector firms and employ nearly 12 million people. These businesses face unique challenges in balancing family relationships with business decisions. For example, the Warburton's bakery, founded in 1876, is now run by the fifth generation of the family and employs over 4,500 people. The family has maintained control while growing into one of Britain's largest bakery companies.
Today's families face several economic challenges that affect how they fulfil their economic functions:
Economic factors significantly influence family formation and structure:
Functionalist view: The family's economic function helps maintain social stability by providing for members' needs and contributing to the economy.
Marxist view: The family reproduces the workforce for capitalism and teaches acceptance of inequality.
Feminist view: The economic division of labour in families often disadvantages women through unpaid domestic work.
When studying the economic function of families, sociologists consider:
- How resources are distributed within families
- Gender roles in economic activities
- How economic policies affect families
- The relationship between family structures and economic systems
- How families adapt to economic changes
When discussing the economic function of families in your exam, make sure to include: