Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267478 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15741
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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.
Subjects: 
sleep
employment
productivity
mental health
sunset times
JEL: 
I18
J12
J13
Document Type: 
Working Paper

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