Adolescent time preferences predict lifetime outcomes
2014 (English)In: Economic Journal, ISSN 0013-0133, E-ISSN 1468-0297, Vol. 124, no 580, F739-F761 p.Article in journal (Refereed) Published
This study investigates the relationship between time preferences and lifetime social and economic outcomes. We use a Swedish longitudinal data set that links information from a large survey on children's time preferences at age 13 to administrative registers spanning over five decades. Our results indicate a substantial adverse relationship between high discount rates and school performance, health, labour supply and lifetime income. Males and high-ability children gain significantly more from being future oriented. These discrepancies are largest regarding outcomes later in life. We also show that the relationship between time preferences and long-run outcomes operates through early human capital investments.
Place, publisher, year, edition, pages
2014. Vol. 124, no 580, F739-F761 p.
IdentifiersURN: urn:nbn:se:su:diva-108878DOI: 10.1111/ecoj.12095ISI: 000344738400008OAI: oai:DiVA.org:su-108878DiVA: diva2:761263