Riccardo Faini CEIS Seminars

Parental Sleep and Employment: Evidence from a British Cohort Study
May, 12nd 2017 (12:00-13:30)
Room B - 1st floor

Joan Costa-i-Font (LSE)

Riccardo Faini CEIS Seminars

We show that sleep deprivation exerts a strong negative effect on labour market performance. We exploit variations in child sleep quality to instrument for parental sleep quality. A one-hour reduction in sleep duration significantly decreases labour force participation, the number of hour’s worked and household income. In addition, we find that low-skilled mothers are more likely to opt out of the labour market and work less hours than high-skilled mothers when exposed to sleep deprivation. We argue that sleep is a major determinant of employment outcomes that needs more attention in designing economic models of time allocation and employment policies.