The labor market consequences of impatience

Brian Cadena and Benjamin Keys

IZA World of Labor, 2022, No 233v2, 233

Abstract: Standard economic theory suggests that individuals know best how to make themselves happy. Thus, policies designed to encourage more forward-looking behaviors will only reduce people's happiness. Recently, however, economists have explored the role of impatience, especially difficulties with delaying gratification, in several important economic choices. There is strong evidence that some people have trouble following through on investments that best serve their long-term interests. These findings open the door to policies encouraging or requiring more patient behaviors, which would allow people to enjoy the eventual payoff from higher initial investment.

Keywords: impatience; dynamic inconsistency; educational investment; job search; lifetime earnings (search for similar items in EconPapers)
JEL-codes: D91 I26 J24 J31 J62 J64 (search for similar items in EconPapers)
Date: 2022
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Journal Article: The labor market consequences of impatience (2016)
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