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

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  • Costa-Font, Joan

    (London School of Economics)

  • Flèche, Sarah

    (CNRS)

  • Pagan, Ricardo

    (University of Malaga)

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

  • Costa-Font, Joan & Flèche, Sarah & Pagan, Ricardo, 2021. "The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time," IZA Discussion Papers 14570, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14570
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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

    health; wellbeing; Daylight Saving Time; 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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