Question

In discussing dividing up household chores, Emily Oster, an economist at the University of Chicago, advised, "No, you shouldn't always unload the dishwasher because you're better at it." If you are better at unloading the dishwasher, why shouldn't you be the one to unload it?

Short answer

Despite being more efficient at unloading the dishwasher, due to the principle of comparative advantage, you should not always be the one to do it. This is because if your opportunity cost is higher for performing this task (i.e., forgoing more valuable activities), the chore should be given to someone who has a lower opportunity cost.

Step-by-step solution

Understand the Concept of Comparative Advantage

To comprehend Emily's statement, an understanding of the economic concept of comparative advantage is required. This principle is the ability of an individual, business, or country to produce a good or service at a lower opportunity cost than others. Opportunity cost is the cost of forgoing the next best alternative when making a decision.

Apply the Concept to Scenario

Even if you are more efficient at unloading the dishwasher, it doesn't mean you should always be the one to do it due to the principle of comparative advantage. Suppose unloading the dishwasher takes less time for you than for your roommate. However, suppose your opportunity cost in terms of what you can achieve in that time (say, working on an important project, or learning a new skill) is higher than your roommate's. In this case, it would be more beneficial to divide tasks so that you can utilize your time more efficiently, and your roommate can unload the dishwasher.

Conclusion

The key to dividing tasks efficiently is not just looking at absolute efficiency, but also considering opportunity costs. Despite being superior at a task, if your opportunity cost is high for performing it, it might be better if someone else does it who has a lower opportunity cost. This approach allows for maximum productivity and efficiency for all parties involved.

Key concepts

Opportunity Cost

Opportunity cost is a fundamental concept in economics, and it plays a crucial role in decision-making processes. It is defined as the value of the next best alternative that one foregoes when making a choice. For instance, if you decide to spend an hour unloading the dishwasher, you have to consider what you give up during that time. Maybe it's reading a book or working on a project that could help your career.
Opportunity cost helps us understand that the real cost of any choice is not only what you spend on it, but also what you give up. If unloading the dishwasher is taking time that could be used for more valuable actions, like studying or working, the cost is not just the time spent but the loss of potential benefits from the foregone activity.
In practical terms, when making decisions about how to allocate time and resources, it is important to weigh these opportunity costs. This can help achieve better outcomes by choosing options that maximize overall benefits.

Economic Efficiency

Economic efficiency is about using resources in a way that maximizes the output of goods and services. It is an important goal because it focuses on making the best use of resources to satisfy human wants.
To achieve economic efficiency, tasks should be allocated based on who can perform them at the lowest opportunity cost, not just who can do them fastest. This might mean allowing one person to focus on activities that generate more value while others handle different tasks. For example, if someone is exceptionally skilled at cooking and enjoys it, it might be efficient for them to handle meals while others tackle chores where they have a comparative advantage.
Understanding economic efficiency helps us see why it’s beneficial to consider opportunity costs in daily chores and broader economic activities. It encourages individuals and organizations to optimize their resources and efforts to create more value overall.

Resource Allocation

Resource allocation refers to the process by which resources like time, money, and labor are distributed and used. It's a concept that applies to organizations, nations, and individuals. In the context of chores or projects, effective resource allocation means everyone contributes in a way that leverages their strengths. It involves analyzing who should do what based not only on ability but also on where each person's contribution offers the most significant return or value.
Smart resource allocation can lead to increased productivity, as tasks are distributed in a way that aligns with each person's unique abilities and available time. This lets everyone work on what they're best at or what yields the highest payoff for their investment of time or effort.
This method also reduces wastage of resources and ensures that everyone can engage in activities that matter most to them, which is essential for both individual satisfaction and mutual progress.