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The proportion of people sleeping less than the daily-recommended hours has increased. Yet, we know little about the labour market returns to sleep. We use longitudinal data from Germany and exploit exogenous variation in sleep duration induced by time and local variations in sunset time. We find that a 1-hour increase in weekly sleep increases employment by 1.6 percentage points and weekly earnings by 3.4%. Most of this earnings effect comes from productivity improvements, while the number of working hours decreases with sleep time. We identify one mechanism driving these effects, namely the better mental health workers experience from sleeping more hours.

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.

The COVID-19 pandemic has led many governments to implement lockdowns. While lockdowns may help to contain the spread of the virus, they may result in substantial damage to population well-being. We use Google Trends data to test whether the lockdowns implemented in Europe and America led to changes in well-being related topic search terms. Using differences-in-differences and a regression discontinuity design to evaluate the causal effects of lockdown, we find a substantial increase in the search intensity for boredom in Europe and the US. We also found a significant increase in searches for loneliness, worry and sadness, while searches for stress, suicide and divorce on the contrary fell. Our results suggest that people's mental health may have been severely affected by the lockdown.

We show that sleep deprivation exerts strong negative effects on mothers' labour market performance. To isolate exogenous variations in maternal sleep, we exploit unique variations in child sleep disruption using a UK panel dataset that follows mother-child pairs through time. We find that sleeping one hour less per night on average significantly decreases maternal labour force participation, the number of hours worked, and household income. We identify one mechanism driving the effects, namely the influence of maternal sleep on selection into full-time versus part-time work. Increased schedule flexibility for mothers with sufficient tenure mitigates the negative effects of sleep deprivation.

To what extent do childhood experiences continue to affect adult wellbeing over the life course? Previous work on this link has been carried out either at one particular adult age or for some average of adulthood. We here use two British birth-cohort datasets (the 1958 NCDS and the 1970 BCS) to map out the time profile of the effect of childhood on adult outcomes, including life satisfaction. We find that the effect of many aspects of childhood do not fade away over time, but are rather remarkably stable. In both birth cohorts child non-cognitive skills are the strongest predictors of adult life satisfaction at all ages. Of these, emotional health is the strongest. Childhood cognitive performance is more important than good conduct in explaining adult life satisfaction in the earlier cohort, whereas this ranking is inverted in the more recent BCS

Understanding the key determinants of people’s life satisfaction will suggest policies for how best to reduce misery and promote wellbeing. This paper provides evidence from survey data on USA, Australia, Britain and Indonesia, which indicate that the things that matter most are people’s social relationships and their mental and physical health. These adult factors affecting happiness are influenced in turn by the pattern of child development: the best predictor of an adult’s life satisfaction is their emotional health as a child. These results call for a new focus for public policy – not “wealth-creation” but “wellbeing-creation”.

Schooling can produce both cognitive and non-cognitive skills, both of which are important determinants of adult outcomes. Using very rich data from a UK birth cohort study, I estimate teacher value added (VA) models for both pupils' test scores and non-cognitive skills. I show that teachers are equally important in the determination of pupils' test scores and non-cognitive skills. This finding extends the economics literature on teacher effects, which has primarily focused on pupils' test scores and may fail to capture teachers' overall effects. In addition, the large estimates reveal an interesting trade-off: teacher VA on pupils' test scores are weak predictors of teacher VA on non-cognitive skills, which suggests that teachers recourse to different techniques to improve pupils' cognitive and non-cognitive skills. Finally, I find that teachers' effects on pupils' non-cognitive skills have long-run impacts on adult outcomes such as higher education attendance, employment and earnings,conditional on their effects on test scores. This result indicates that long-run outcomes are improved by a combination of teachers increasing pupils' test scores and non-cognitive skills and has large policy implications.

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.

The current study argues that women's decision to leave the labor force at the point where their income exceeds their husbands' income may have less to do with gender identity norm (Bertrand et al., 2015) and more to do with what women think is a fair distribution of relative working hours within the household. Using three nationally-representative data, we show that life satisfaction is significantly lower among women whose work hours exceed their partners, holding the share of wife's income constant. Men, by contrast, are not affected by working longer or fewer hours than their wives.

Do people care about the degree of centralization? This paper examines the effects of local centralization reforms on individuals' well-being using a quasi-natural experiment in Switzerland. The results reveal that centralization has a causal negative impact on individuals' life satisfaction. Consistent with the concept of procedural utility, centralization reduces individuals' feeling of having political influence and interest in politics. In contrast, there are no impacts on individuals' satisfaction with local governments' performance. These findings shed new light on what people value in decentralized institutions.