Time preferences and lifetime outcomes

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2013:22

Classification and Topics

• Classification: Wirtschaft ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Labor Economics: General
• Subject: intertemporal choice ; personality ; preference parameter ; human capital ; income ; health

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Golsteyn, Bart H. H. ; Grönqvist, Hans ; Lindahl, Lena
• Event: Veröffentlichung
• (who): Institute for Evaluation of Labour Market and Education Policy (IFAU)
• (where): Uppsala
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/106276
• Last update: 10.03.2025, 11:44 AM CET