Assignment - Discuss the relationship between the market Urban economy, the family size and structure and welfare state

INTRODUCTION 

It is now widely accepted that market urban economy is as much a social process as it is an territorial process. It transforms societal organizations, the role of the family, demographic structures, the nature of work, and the way we choose to live and with whom. It also modifies domestic roles and relations within the family, and redefines concepts of individual and social responsibility.

This diversity in living arrangements and family composition in urban societies is also closely linked to shifts in the world of work—in the urban economy and in occupations. Not only does urbanization involve obvious changes in employment and working life, it alters the relationships between households (the collective units of consumption) and labor markets (the production sector). Individuals work and earn wages, but it is households (and families) that spend those earnings. Thus, the composition of families and households influences the changing well-being of the individuals in those households as much as the occupational status of its members.

Market Urban economics is broadly the economic study of urban areas; as such, it involves using the tools of economics to analyze urban issues such as crime, education, public transit, housing, and local government finance. More narrowly, it is a branch of microeconomics that studies urban spatial structure and the location of households and firms (Quigley 2008).

THE RELATIONSHIP BETWEEN MARKET URBAN ECONOMY, FAMILY SIZE AND STRUCTURE AND WELFARE STATE

There is a relationship between the family (size & structure), nature of welfare state and economy.  This is because the structure of the economy and social system to a large extent determine the welfare needs of a community – whether of a traditional farming or modern market economy.  Take for examples, in some part of Nigeria where younger people get married to many wives at a younger age and give birth to many children as they can without birth control, this has a significant effect to their welfare needs.  The pre-colonial Nigerian rural communities were examples also of a traditional farming community – they were basically rural and large family and were required to cope with farm work.

Girls were given out early in marriage and polygamy was encouraged and seen as a sign influence. The welfare needs capable of sustaining such a social group in a traditional farming economy are as follows;

(1)   Good access road for the evacuation of farm produce

(2)   Establishment of a primary health care centre

(3)   Provision of agric – extension of services

(4)   Provision of portable drinking water and

(5)   Primary school

It is pertinent to note that this economy is characterized largely by wage and labour, and small nuclear family size.  It is also characterized these days with high level of unemployment, skill redundancies and the attendant risk of social exclusion thereby increasing the demand for social protection.  However, growing influence of economic liberalism has led to reduction in social protection and tighter control of public expenditure.

As already noted, the male bread winner model no longer describes adequately the relationship between the family/household and the labour market.  This is because, women nowadays constitutes the a sizeable percentage of the labour market in this economy.

The welfare state in such regimes can intervene with strategies on behalf of women to encourage the provision of child care facilities by employers of labour.  This will enable women take up gainful employment and stimulate the required economic growth to sustain the welfare state and pay for its services.  Other possible intervention by the state involves retaining for new skills acquisition and periodic supply of food items to the poor, redundant and retrenched workers.

The alternative in the absence of such state intervention is for the women population to be constrained to react as follows:

1.      That women substantially reduce their labour market involvement by staying at home to look after their children and this will spell hardship for the family as it will reduce their earning power.

Note that the family in an urban market economy lives on earned salaries and wages.  House rent must be paid as at when due.  Food has to be bought, vehicles serviced and children’s school fees paid.

2.       The other implication is that the resultant exclusion and reduction in the female workforce will reduce the National Gross Domestic Product (GDP) OR

3.      That women reduce their fertility rate by either delaying child bearing or reducing the frequency of child birth.  This in turn reduce averages family size and affects the demographic structure of the country in a long run. 

Note that it will also affect the composition of the labour force, thus, social policy, welfare strategies  and program can in the long run determine the average family size and demographic structure of a country including that of its future labour force.

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