Chronotype and Wages at Mid-Age

31 Pages Posted: 7 Oct 2022

See all articles by Andrew Conlin

Andrew Conlin

Aalto University School of Business

Iiro Nerg

University of Oulu

Leena Ala-Mursula

University of Oulu

Tapio Räihä

University of Oulu

Marko Korhonen

University of Oulu

Date Written: October 7, 2022

Abstract

Sleep has been shown to affect economic outcomes, including wages. The mechanisms by which sleep affect wages remain unclear. We examine the relationship between chronotype – morning larks, evening owls – and wages at mid-age. We propose a novel model relating chronotype to wages in consideration of human, social, and health capital constructs. Empirically, we explore the effects of chronotype mediated through life course choices, such as education, trust, and health behaviour. The data come from the 46-year-old follow-up study of the Northern Finland Birth Cohort 1966 and from registers of the Finnish Tax Administration from 1995 to 2016. We find evening chronotype to have a significant indirect negative effect on wages, which occurs mainly through poor health outcomes. The effect is largest for male workers, with a total indirect effect on average wages of -8%. We also show that chronotype has a long-term effect on wages between 29 and 50 years of age. We conclude that evening-type workers are less suited to typical working hours and accumulate less human, social and health capital which in turn negatively affects their wages. Our findings are of great socio-economic importance because evening chronotypes make up a significant part of the population.

Keywords: Chronotype, Wage determination, birth cohort, human capital, social capital, health capital

Suggested Citation

Conlin, Andrew and Nerg, Iiro and Ala-Mursula, Leena and Räihä, Tapio and Korhonen, Marko, Chronotype and Wages at Mid-Age (October 7, 2022). Available at SSRN: https://ssrn.com/abstract=4240603

Andrew Conlin (Contact Author)

Aalto University School of Business ( email )

Ekonominaukio 1
Espoo, 02150
Finland

Iiro Nerg

University of Oulu ( email )

Leena Ala-Mursula

University of Oulu ( email )

Tapio Räihä

University of Oulu ( email )

Marko Korhonen

University of Oulu ( email )

P.O. Box 4600
Oulu FIN-90014, 90570
Finland

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