The Effect of Language on Economic Behavior: Evidence from Savings Rates, Health Behaviors, and Retirement Assets

Keith Chen

No 1820, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: Languages differ widely in the ways they encode time. I test the hypothesis that languages that grammatically associate the future and the present, foster future-oriented behavior. This prediction arises naturally when well-documented effects of language structure are merged with models of intertemporal choice. Empirically, I find that speakers of such languages: save more, retire with more wealth, smoke less, practice safer sex, and are less obese. This holds both across countries and within countries when comparing demographically similar native households. The evidence does not support the most obvious forms of common causation. I discuss implications for theories of intertemporal choice.

Keywords: Language; Time preference; Intertemporal choice; Savings behavior; Health; National savings rates; Sapir-Whorf hypothesis (search for similar items in EconPapers)
JEL-codes: D03 D14 D91 E21 I10 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2011-08, Revised 2012-12
New Economics Papers: this item is included in nep-cbe and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (46)

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