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The effect of education on time preferences

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  • Perez-Arce, Francisco

Abstract

I examine whether education increases patience by analyzing a case study of a public college in Mexico City where admission decisions are determined through a lottery. Applicants who were successful in the draw were more likely to be studying in the following years. I surveyed the applicants to this college almost two years after the admission decision was made and measured their time preferences with a series of hypothetical inter-temporal choice questions. I find that individuals who acquired more education due to the admission lottery were, on average, more patient, which suggests there may be a causal effect of education on time preferences.

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  • Perez-Arce, Francisco, 2017. "The effect of education on time preferences," Economics of Education Review, Elsevier, vol. 56(C), pages 52-64.
    • Handle: RePEc:eee:ecoedu:v:56:y:2017:i:c:p:52-64
    DOI: 10.1016/j.econedurev.2016.11.004
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    2. Cobb-Clark, Deborah A. & Dahmann, Sarah C. & Kamhöfer, Daniel A. & Schildberg-Hörisch, Hannah, 2024. "Schooling and self-control," DICE Discussion Papers 413, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
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    9. Dawoon Jung & Tushar Bharati & Seungwoo Chin, 2021. "Does Education Affect Time Preference? Evidence from Indonesia," Economic Development and Cultural Change, University of Chicago Press, vol. 69(4), pages 1451-1499.
    10. Cobb-Clark, Deborah A. & Dahmann, Sarah Christina & Kamhöfer, Daniel A. & Schildberg-Hörisch, Hannah, 2022. "The determinants of population self-control," DICE Discussion Papers 385, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    11. Chowdhury, Shyamal & Smits, Joeri & Sun, Qigang, 2020. "Contract structure, time preference, and technology adoption," GLO Discussion Paper Series 633, Global Labor Organization (GLO).
    12. Claudio Campanale, 2020. "Consumption insurance and education: A puzzle?," Working papers 069, Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
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    14. Quis, Johanna Sophie & Bela, Anika & Heineck, Guido, 2018. "Preschoolers' self-regulation, skill differentials, and early educational outcomes," BERG Working Paper Series 140, Bamberg University, Bamberg Economic Research Group.
    15. Pelin Akyol & Naci Mocan, 2023. "Education and Consanguineous Marriage," Journal of Human Capital, University of Chicago Press, vol. 17(1), pages 114-171.
    16. Lily, Miriam Al & Liebenehm, Sabine & Waibel, Hermann, 2021. "Risk and Time Preferences of Poor Urban Households in Saudi Arabia," 2021 Conference, August 17-31, 2021, Virtual 315152, International Association of Agricultural Economists.
    17. Burro, Giovanni & McDonald, Rebecca & Read, Daniel & Taj, Umar, 2022. "Patience decreases with age for the poor but not for the rich: an international comparison," Journal of Economic Behavior & Organization, Elsevier, vol. 193(C), pages 596-621.
    18. Kunt Šimunović, Pınar, 2024. "Education increases patience: Evidence from a change in a compulsory schooling law," Economics & Human Biology, Elsevier, vol. 53(C).
    19. Yamamura, Eiji & Kang, Myong-Il & Ikeda, Shinsuke, 2020. "Effect of female elementary-school homeroom teachers on time preferences in adulthood," MPRA Paper 99860, University Library of Munich, Germany.
    20. T. Lehnert & O. H. Günther & A. Hajek & S. G. Riedel-Heller & H. H. König, 2018. "Preferences for home- and community-based long-term care services in Germany: a discrete choice experiment," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(9), pages 1213-1223, December.
    21. Fink Simonsen, Nicolai & Kjær, Trine, 2021. "New Evidence of Health State Dependent Utility of Consumption: A combined survey and register study," DaCHE discussion papers 2021:2, University of Southern Denmark, Dache - Danish Centre for Health Economics.
    22. Viinikainen, Jutta & Bryson, Alex & Böckerman, Petri & Kari, Jaana T. & Lehtimäki, Terho & Raitakari, Olli & Viikari, Jorma & Pehkonen, Jaakko, 2022. "Does better education mitigate risky health behavior? A mendelian randomization study," Economics & Human Biology, Elsevier, vol. 46(C).
    23. Chowdhury, Shyamal & Smits, Joeri & Sun, Qigang, 2020. "Contract Structure, Time Preference, and Technology Adoption," IZA Discussion Papers 13590, Institute of Labor Economics (IZA).
    24. Boonmanunt, Suparee & Lauer, Thomas & Rockenbach, Bettina & Weiss, Arne, 2020. "Field evidence on the role of time preferences in conservation behavior," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    25. Stefania Basiglio & Andrea Ricci & Mariacristina Rossi, 2023. "Bosses' Impatience and Digital Technologies," Carlo Alberto Notebooks 688 JEL Classification: D, Collegio Carlo Alberto.

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