Time Preferences and Lifetime Outcomes

Bart Golsteyn (), Hans Grönqvist and Lena Lindahl

No 7165, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the relationship between time preferences and lifetime social and economic behavior. We use a Swedish longitudinal dataset 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, labor 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.

Keywords: income; preference parameter; personality; intertemporal choice; human capital; health (search for similar items in EconPapers)
JEL-codes: D03 D91 J01 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2013-01
New Economics Papers: this item is included in nep-cbe, nep-dem, nep-hea and nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published - published as 'Adolescent Time Preferences Predict Lifetime Outcomes' in: Economic Journal, 2014, 124 (580), F739-F761

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Related works:
Working Paper: Time preferences and lifetime outcomes (2013)
Working Paper: Time preferences and lifetime outcomes (2013)
Working Paper: Time preferences and lifetime outcomes (2013)
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