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The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time

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  • Joan Costa-Font

    (IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics, LSE - LSE Health and Social Care - LSE - London School of Economics and Political Science)

  • Sarah Fleche

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CEP - LSE - Centre for Economic Performance - LSE - London School of Economics and Political Science)

  • Ricardo Pagan

    (Universidad de Málaga [Málaga] = University of Málaga [Málaga])

Abstract

Daylight Saving Time (DST) is currently implemented by more than seventy countries, yet we do not have a clear knowledge of how it affects individuals' welfare. Using a regression discontinuity design combined with a differences-in-differences approach, we find that the Spring DST causes a significant decline in life satisfaction. By inducing a reallocation of time, the transition into DST deteriorates sleep and increases time stress, which in turn affects physical and emotional health. After performing a simple cost-benefit analysis, we find evidence suggestive that ending DST would exert a positive effect on welfare, namely the wellbeing costs associated with DST exceed its benefits.

Suggested Citation

  • Joan Costa-Font & Sarah Fleche & Ricardo Pagan, 2021. "The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time," Working Papers halshs-03322741, HAL.
    • Handle: RePEc:hal:wpaper:halshs-03322741
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03322741
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    2. Depalo, Domenico, 2023. "Should the Daylight Saving Time be abolished? Evidence from work accidents in Italy," Economic Modelling, Elsevier, vol. 128(C).

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    More about this item

    Keywords

    Daylight Saving Time; wellbeing; health; sleep; time stress;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K2 - Law and Economics - - Regulation and Business Law
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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