Template-type: ReDif-Paper 1.0
Author-Name: Golsteyn, B.H.H.
Author-workplace-name: Macro, International & Labour Economics
Author-Name: Grönqvist, H.
Author-Name: Lindahl, L.
Title: Time preferences and lifetime outcomes
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.
Series: GSBE Research Memoranda
Creation-Date: 20130101
Number: 065
File-URL: https://cris.maastrichtuniversity.nl/ws/files/1429330/guid-2c6c8509-80a6-4027-87d8-d3c7375bdd19-ASSET1.0.pdf
File-Format: application/pdf
File-Size: 192909
Handle: Repec:unm:umagsb:2013065
DOI: 10.26481/umagsb.2013065