The welfare effects of time reallocation: evidence from Daylight Saving Time

Joan Costa-Font, Sarah Flèche and Ricardo Pagan Rodriguez

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Daylight Saving Time (DST) is a widely adopted practice implemented by over 70 countries to align sunlight with day-to-day activities and reduce energy demands. However, we do not have a clear knowledge of how it affects individuals' welfare. Using a regression discontinuity combined with a difference-in-differences design, we find that the Spring DST transition causes a significant decline in life satisfaction. By inducing a reallocation of time, the transition into DST deteriorates sleep quality and increases time stress, which in turn affects physical and emotional health. Using an event study approach, we find that such effects persist for about six days after the DST transition. Conversely, we provide evidence that the Autumn DST transition gives rise to a significant increase in life satisfaction. Finally, using a simple cost-benefit analysis, we discuss the potential benefits of ending DST.

Keywords: daylight saving time; wellbeing; health; sleep; time; stress (search for similar items in EconPapers)
JEL-codes: I18 I31 K20 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2024-04-01
New Economics Papers: this item is included in nep-hea and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Economica, 1, April, 2024, 91(362), pp. 547 - 568. ISSN: 0013-0427

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http://eprints.lse.ac.uk/120819/ Open access version. (application/pdf)

Related works:
Journal Article: The welfare effects of time reallocation: evidence from Daylight Saving Time (2024)
Working Paper: The welfare effects of time reallocation: evidence from Daylight Saving Time (2024)
Working Paper: The welfare effects of time reallocation: evidence from Daylight Saving Time (2024)
Working Paper: The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time (2021)
Working Paper: The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time (2021)
Working Paper: The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time (2021)
Working Paper: The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time (2021)
Working Paper: The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time (2021)
Working Paper: The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time (2021)
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