Rich Kids, Poor Kids:Measuring the Opportunity Cost of Time Using Sleep Patterns For Teenagers
39 Pages Posted: 20 Jan 2023
This paper explores time use as a possible contributor to income inequality. Productive time is modeled as the complement to a model of sleep that incorporates the biological necessity of sleep within a dynamic choice framework. Our empirical application uses the quasi-exogenous variation in time constraints for high school students due to school being in session. We find that there are large differences in time use patterns across the income distribution. The results imply that time allocation for adolescents influenced by parents can be an important aspect of human capital acquisition and contribute to the intergenerational correlation in human capital.
Keywords: sleep, opportunity cost, dynamic models, high school students
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