Time preferences and lifetime outcomes

B.H.H. Golsteyn, H. Grönqvist, L. Lindahl

Research output: Working paperProfessional

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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 four 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.
Original languageEnglish
Place of PublicationMaastricht
PublisherResearch Centre for Education and the Labour Market
Publication statusPublished - 1 Jan 2013

Publication series

SeriesROA Research Memoranda
Number019

Cite this

Golsteyn, B. H. H., Grönqvist, H., & Lindahl, L. (2013). Time preferences and lifetime outcomes. Research Centre for Education and the Labour Market. ROA Research Memoranda, No. 019