Similarities and Differences Between Institutional and Feminist Economics

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Institutional Economics and Feminist Economics
Introduction
The progress of society has not affected all individuals evenly. Women, in particular, have been alienated from many economic benefits in society. Progress has largely been embedded in the institutions present in the society. At the same time, gender relations have remained critical in the production and reproduction aspects of society. The institutions installed in society have determined how genders operate in society. These institutions have been critical in determining the economic outcomes of society. Such institutions entail norms and expectations pertaining to the appropriate behavior for both males and females. These institutions can sometimes denote rules governing gender roles in the family or the economy. The existence of such specific rules has tended to constrain the options available for women to attain their full potential. In recent decades, issues about gender inequality have been critical in examining the various aspects of society including economics. This essay entails a comparison between institutional economics and feminist economics.
Gender Inequality in Social Institutions
The household remains a basic economic and social institution. Gender roles are critical to the social institution that governs the production and reproduction in society (Mayhew 4). The main problem has remained the exclusion of women’s care work in conventional measures related to economic performance. For instance, the gross domestic product does not include non-marketed services done in the household, where a majority of the women have been confined. Hence, considering the economy of the society from such a narrow lens ignores the contribution of women to the economy. The men are left to engage in activities that lead to the generation of income, while women remain as homemakers, where there is no income. For instance, it is common to see families where husbands work, while the women remain at home engaging in household chores. In such arrangements, women engage in work like their counterpart males, only that their efforts are not recognized. This contributes to gender inequalities.
Meaning of Institutional Economics and Feminist economics
The groundbreaking work of Thorstein Veblen more than a century ago gives insights into the institutional economic models. Institutional economics considers the role of institutions in the economy together with their evolution. Veblen indicated that patriarchal norms are an example of how institutions play a disruptive role in the economy (Veblen 65). This would then cause more inequalities and inefficiencies in the economy. In the modern world, institutional economics appears to be less concerned with gendered institutions.
Feminist economics can be defined as what is required to create gender equality. In other words, feminist economics acknowledges how mainstream economics has led to gender inequality. The mainstream economics normalizes the lives of men while largely ignoring the contribution of women to the economy. In mainstream economic models like institutional economics, the aspect of “economic man” is common. Here, the man engages in an income-generating activity and spends all the money he earns in the consumption of goods and services. The man further does not engage in housework or care for anyone. An economic man hence lives in a manner that ignores the significance of women’s lives (Ferber and Nelson 26).
Consequently, models based on the economic man be utilized to demonstrate the existence of gender inequalities or even propose measures to reduce the inequalities. The economy means different things to different people. What some people include in their definition of economics may be omitted by another group. The feminist economics comes from the understanding that the definition of “the economy” from mainstream economics is incomplete. The survival of society depends on not only paid employment but also on unpaid work done at home. Apart from the goods that are meant for sale in the market, there are also other products that are meant to be used directly in families.
Similarities
Both institutional economics and feminist economics acknowledge that individual tastes and preferences are context-dependent. Institutional economics indicate that individuals can be affected by institutions and culture (Fischer et al. 84). Similarly, feminist economics rejects the idea that the preferences of people remain unchanged (Fischer et al. 106). Hence, both approaches agree that the preferences and tastes of individuals are not fixed through life, but rather keep on changing depending on different circumstances. Depending on the culture which people are exposed to, they can develop preferences dictated by the given culture. Social norms are in particular important in influencing what individuals do and want. Due to the manner in which these preferences can be changed, both institutional economies and feminist economies see advertising as critical in determining the decisions of people. Through advertising, the wants of individuals can be synthesized to subtly alter them (Fischer et al. 85). This is not to mean that both approaches ignore the essence of...