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Down the Rabbit Hole: Habit-formation in internet use among unemployed workers

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  • Potter, Tristan

Abstract

This paper tests for habit-formation in leisure-related internet use (LIU) using time-diary data from a panel of unemployed workers. Drawing on insights from the consumption-habit literature, I use a model of intertemporal time allocation to derive a test for habit-formation in leisure activities. The data reveal strong evidence of habit-formation in LIU among the Generation-X age cohort. With the exception of reading, I find no evidence of habit-formation in offline leisure.

Suggested Citation

  • Potter, Tristan, 2022. "Down the Rabbit Hole: Habit-formation in internet use among unemployed workers," Economics Letters, Elsevier, vol. 215(C).
    • Handle: RePEc:eee:ecolet:v:215:y:2022:i:c:s0165176522001343
    DOI: 10.1016/j.econlet.2022.110514
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    2. Alan B. Krueger & Andreas Mueller, 2011. "Job Search and Job Finding in a Period of Mass Unemployment: Evidence from High-Frequency Longitudinal Data," Working Papers 1295, Princeton University, Department of Economics, Center for Economic Policy Studies..
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    6. Krueger, Alan B. & Mueller, Andreas I., 2011. "Job Search and Job Finding in a Period of Mass Unemployment: Evidence from High-Frequency Longitudinal Data," IZA Discussion Papers 5450, Institute of Labor Economics (IZA).
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    More about this item

    Keywords

    Habit-formation; Leisure; Internet use;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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