Working Paper
The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time
Joan Costa-i-Font, Sarah Fleche, Pagan Ricardo
CESifo, Munich, 2021
CESifo Working Paper No. 9195
CESifo, Munich, 2021
CESifo Working Paper No. 9195
Daylight Saving Time (DST) is currently implemented by more than seventy countries, yet we do not have a clear knowledge of how it affects individuals’ welfare. Using a regression discontinuity design combined with a differences-in-differences approach, we find that the Spring DST causes a significant decline in life satisfaction. By inducing a reallocation of time, the transition into DST deteriorates sleep and increases time stress, which in turn affects physical and emotional health. After performing a simple cost-benefit analysis, we find evidence suggestive that ending DST would exert a positive effect on welfare, namely the wellbeing costs associated with DST exceed its benefits.
CESifo Category
Social Protection
Labour Markets
Social Protection
Labour Markets
Keywords: Daylight Saving Time, wellbeing, health, sleep, time stress
JEL Classification: I180, K200, I310