Abstract
This study investigates the relationship between time preferences and lifetime social and economic outcomes. We use a Swedish longitudinal data set 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, labour 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 language | English |
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Pages (from-to) | F739-F761 |
Number of pages | 23 |
Journal | The Economic Journal |
Volume | 124 |
Issue number | 580 |
Early online date | 14 Mar 2014 |
DOIs | |
Publication status | Published - Nov 2014 |
Keywords
- PRESCHOOL DELAY
- BEHAVIOR
- IMPATIENCE
- GRATIFICATION
- ASSOCIATION
- ABILITIES
- DECISIONS
- CHILDREN
- HEALTH
- INCOME