Here Comes the Rain Again: Weather and the Intertemporal Substitution of Leisure

Marie Connolly

Journal of Labor Economics, 2008, vol. 26, issue 1, 73-100

Abstract: I revisit the intertemporal labor supply framework, using exogenous variations in daily weather to see how time at work varies with rain. In my model, a rainy day is associated with a lower enjoyment of leisure, effectively increasing wages and bringing more hours at work. I test the model using data from the American Time Use Survey, supplemented with daily weather. I find that, on rainy days, men shift on average 30 minutes from leisure to work. Computations give a rough estimate of the intertemporal elasticity of labor supply of around 0.01, in line with the rest of the literature.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlabec:v:26:y:2008:p:73-100

DOI: 10.1086/522067

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