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Time Use and Productivity: The Wage Returns to Sleep

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  • Gibson, Matthew
  • Shrader, Jeffrey

Abstract

While economists have long been interested in effects of health and human capital on productivity, less attention has been paid to the influence of time use. We investigate the productivity effects of the single largest use of time--sleep. Because sleep influences performance on memory and focus intensive tasks, it plausibly affects economic outcomes. We identify the effect of sleep on wages by exploiting the relationship between sunset time and sleep duration. Using a large, nationally representative set of time use diaries from the United States, we provide the first causal estimates of the impact of sleep on wages: a one-hour increase in long-run average sleep increases wages by 16%, equivalent to more than one year of schooling. We also document the nonlinearity of the sleep-wage relationship. Our results highlight the economic importance of sleep and pose potentially fruitful questions about the effects of time use on labor market outcomes. (JEL No. J22, J24, J31)

Suggested Citation

  • Gibson, Matthew & Shrader, Jeffrey, 2014. "Time Use and Productivity: The Wage Returns to Sleep," University of California at San Diego, Economics Working Paper Series qt8zp518hc, Department of Economics, UC San Diego.
    • Handle: RePEc:cdl:ucsdec:qt8zp518hc
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    Cited by:

    1. Giuntella, Osea & Lonsky, Jakub & Mazzonna, Fabrizio & Stella, Luca, 2021. "Immigration policy and immigrants’ sleep. Evidence from DACA," Journal of Economic Behavior & Organization, Elsevier, vol. 182(C), pages 1-12.
    2. Marcus T. Wolfe & Pankaj C. Patel, 0. "I will sleep when I am dead? Sleep and self-employment," Small Business Economics, Springer, vol. 0, pages 1-17.
    3. Jara-Díaz, Sergio R. & Rosales-Salas, Jorge, 2020. "Time use: The role of sleep," Transportation Research Part A: Policy and Practice, Elsevier, vol. 136(C), pages 1-20.
    4. Zachary Breig & Matthew Gibson & Jeffrey Shrader, 2019. "Why Do We Procrastinate? Present Bias and Optimism," Department of Economics Working Papers 2019-15, Department of Economics, Williams College.
    5. Joan Costa-Font & Sarah Flèche, 2018. "Child Sleep and Maternal Labour Market Outcomes [Discussion Paper Series]," Working Papers halshs-03204629, HAL.
    6. Mullins, Jamie T. & White, Corey, 2019. "Temperature and mental health: Evidence from the spectrum of mental health outcomes," Journal of Health Economics, Elsevier, vol. 68(C).
    7. Giuntella, Osea & Mazzonna, Fabrizio, 2016. "If You Don't Snooze You Lose: Evidence on Health and Weight," IZA Discussion Papers 9773, Institute of Labor Economics (IZA).
    8. Billari, Francesco C. & Giuntella, Osea & Stella, Luca, 2018. "Broadband internet, digital temptations, and sleep," Journal of Economic Behavior & Organization, Elsevier, vol. 153(C), pages 58-76.
    9. Osea Giuntella & Wei Han & Fabrizio Mazzonna, 2017. "Circadian Rhythms, Sleep, and Cognitive Skills: Evidence From an Unsleeping Giant," Demography, Springer;Population Association of America (PAA), vol. 54(5), pages 1715-1742, October.
    10. Giuntella, Osea & Mazzonna, Fabrizio, 2019. "Sunset time and the economic effects of social jetlag: evidence from US time zone borders," Journal of Health Economics, Elsevier, vol. 65(C), pages 210-226.
    11. Costa-Font, Joan & Flèche, Sarah, 2017. "Parental sleep and employment: evidence from a British cohort study," LSE Research Online Documents on Economics 69530, London School of Economics and Political Science, LSE Library.
    12. Cardon, James H. & Eide, Eric R. & Phillips, Kerk L. & Showalter, Mark H., 2018. "A model of sleep, leisure and work over the business cycle," Journal of Economic Dynamics and Control, Elsevier, vol. 95(C), pages 19-36.
    13. Craig Tutterow & Guillaume Saint-Jacques, 2019. "Estimating Network Effects Using Naturally Occurring Peer Notification Queue Counterfactuals," Papers 1902.07133, arXiv.org.
    14. Herber, Stefanie P. & Quis, Johanna Sophie & Heineck, Guido, 2017. "Does the transition into daylight saving time affect students’ performance?," Economics of Education Review, Elsevier, vol. 61(C), pages 130-139.
    15. Lusher, Lester & Yasenov, Vasil & Luong, Phuc, 2019. "Does schedule irregularity affect productivity? Evidence from random assignment into college classes," Labour Economics, Elsevier, vol. 60(C), pages 115-128.
    16. Osea Giuntella & Fabrizio Mazzonna, 2015. "If You Don’t Snooze You Lose Health and Gain Weight Evidence from a Regression Discontinuity Design," IdEP Economic Papers 1505, USI Università della Svizzera italiana.
    17. Marcus T. Wolfe & Pankaj C. Patel, 2020. "I will sleep when I am dead? Sleep and self-employment," Small Business Economics, Springer, vol. 55(4), pages 901-917, December.
    18. Sedigh, Golnaz & Devlin, Rose Anne & Grenier, Gilles & Deri Armstrong, Catherine, 2017. "Revisiting the relationship between wages and sleep duration: The role of insomnia," Economics & Human Biology, Elsevier, vol. 24(C), pages 125-139.

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    More about this item

    Keywords

    Social and Behavioral Sciences;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • 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

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