Determining the Optimal Allocation of Time Among Work, Sports, Internet Use, and Sleep

Abstract

Purpose – The purpose of this paper is to extract the optimal time allocation of weekly hours among work, sleep, sports, and internet use for 16 different demographic groups.

Design/methodology/approach – The agent wishes to minimize the gap between his or her actual and optimal allocation for each activity. His or her actual allocation of time for each activity is affected by his or her allocations for other activities and by exogenous variables. A system of simultaneous equations is constructed, with the four levels of time allocation as the endogenous variables. Using a cross-section database of 928 Israel residents, the authors estimate the system and predict the actual allocation of time. Inserting the forecast equations into the agents’ target function and differentiating by each actual time allocation, the authors extract the optimal time allocation for 16 different demographic groups.

Findings – The results make it clear that the optimal desired level of sleep hours is highest among married Jews and non-Jews of both genders, whereas the desired level of work hours is highest among female non-Jews whose children have a computer and among married males, Jewish and non-Jewish alike. Female Jews and non-Jews wish to allocate the most hours to internet use, while married males of both nationalities wish to allocate the fewest. The desired level of sports hours is highest among married and non-married Jews. Examining the effect of age on time allocation, the main findings show a very significant cutback in allocation of hours for sleep among agents at age 20.8 and an increase of about 2.5 hours of sleep among agents aged 60.8, both relative to those aged 40.8.

Originality/value – The original model presented here brings a non-traditional approach to the analysis of time allocation. The authors believe that each agent wishes that he or she could allocate his or her time for personal benefit on the basis of a theoretical apportionment determined on the basis of experience and tendencies. Even though an agent’s actual time allocation may be affected by many factors, he or she still has a sense of disutility when the actual allocation deviates from selected optimum.

Keywords: Efficiency, Well-being, Optimal time allocation, Actual allocation, Minimized gap

JEL Classification: J22