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The labor market consequences of impatience

Author

Listed:
  • Brian C. Cadena

    (University of Colorado Boulder, USA, and IZA, Germany)

  • Benjamin J. Keys

    (University of Pennsylvania, and NBER, USA)

Abstract

Standard economic theory suggests that individuals know best how to make themselves happy. Thus, policies designed to encourage more forward-looking behaviors will only reduce people's happiness. Recently, however, economists have explored the role of impatience, especially difficulties with delaying gratification, in several important economic choices. There is strong evidence that some people have trouble following through on investments that best serve their long-term interests. These findings open the door to policies encouraging or requiring more patient behaviors, which would allow people to enjoy the eventual payoff from higher initial investment.

Suggested Citation

  • Brian C. Cadena & Benjamin J. Keys, 2022. "The labor market consequences of impatience," IZA World of Labor, Institute of Labor Economics (IZA), pages 233-233, October.
    • Handle: RePEc:iza:izawol:journl:2022:n:233
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    References listed on IDEAS

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    More about this item

    Keywords

    impatience; dynamic inconsistency; educational investment; job search; lifetime earnings;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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