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The Effect of Education on Time Preferences

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  • Francisco Perez-Arce

Abstract

The author examines whether education increases patience. Admission decisions in a public college in Mexico are determined through a lottery. He finds that applicants who were successful in the draw were more likely to study in the following years. He surveyed the applicants to this college almost two years after the admission decision was made and measured their time preferences with a series of hypothetical inter-temporal choice questions. He finds that individuals who were successful in the admission lottery were, on average, more patient. He argues that this evidence points towards a causal effect of education on time preferences. t

Suggested Citation

  • Francisco Perez-Arce, 2011. "The Effect of Education on Time Preferences," Working Papers WR-844, RAND Corporation.
    • Handle: RePEc:ran:wpaper:wr-844
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    References listed on IDEAS

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    1. John Ameriks & Andrew Caplin & John Leahy & Tom Tyler, 2007. "Measuring Self-Control Problems," American Economic Review, American Economic Association, vol. 97(3), pages 966-972, June.
    2. Gary S. Becker & Casey B. Mulligan, 1997. "The Endogenous Determination of Time Preference," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(3), pages 729-758.
    3. John Ameriks & Andrew Caplin & John Leahy, 2003. "Wealth Accumulation and the Propensity to Plan," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 1007-1047.
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    Cited by:

    1. Masahiro Shoji & Yoko Takafuji & Tetsuya Harada, 2020. "Formal education and disaster response of children: evidence from coastal villages in Indonesia," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 103(2), pages 2183-2205, September.
    2. Golsteyn, B.H.H. & Grönqvist, H. & Lindahl, L., 2013. "Time preferences and lifetime outcomes," ROA Research Memorandum 019, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    3. Laurent Denant-Boemont & Enrico Diecidue & Olivier l’Haridon, 2017. "Patience and time consistency in collective decisions," Experimental Economics, Springer;Economic Science Association, vol. 20(1), pages 181-208, March.
    4. Bingley, Paul & Martinello, Alessandro, 2017. "The Effects of Schooling on Wealth Accumulation Approaching Retirement," Working Papers 2017:9, Lund University, Department of Economics.
    5. Åslund, Olof & Grönqvist, Hans & Hall, Caroline & Vlachos, Jonas, 2018. "Education and criminal behavior: Insights from an expansion of upper secondary school," Labour Economics, Elsevier, vol. 52(C), pages 178-192.
    6. Fink Simonsen, Nicolai & Kjær, Trine, 2021. "New Evidence of Health State Dependent Utility of Consumption: A combined survey and register study," DaCHE discussion papers 2021:2, University of Southern Denmark, Dache - Danish Centre for Health Economics.
    7. Mabel Andalón & Jenny Williams & Michael Grossman, 2014. "Empowering Women: The Effect of Schooling on Young Women's Knowledge and Use of Contraception," NBER Working Papers 19961, National Bureau of Economic Research, Inc.
    8. Waqar Wadho & Umair Ayaz, 2018. "Government size and economic growth in an endogenous growth model with rent†seeking," Economics and Politics, Wiley Blackwell, vol. 30(1), pages 151-179, March.
    9. Higashi, Youichiro & Hyogo, Kazuya & Takeoka, Norio, 2014. "Stochastic endogenous time preference," Journal of Mathematical Economics, Elsevier, vol. 51(C), pages 77-92.
    10. De Paola, Maria & Gioia, Francesca, 2013. "Does Patience Matter for Marriage Stability? Some Evidence from Italy," IZA Discussion Papers 7769, Institute of Labor Economics (IZA).
    11. Maria Paola & Francesca Gioia, 2017. "Does patience matter in marriage stability? Some evidence from Italy," Review of Economics of the Household, Springer, vol. 15(2), pages 549-577, June.
    12. Wadho, Waqar Ahmed & Ayaz, Umair, 2015. "Rent-seeking, Government Size and Economic Growth," MPRA Paper 71213, University Library of Munich, Germany.
    13. Akerlund, David & Golsteyn, Bart H.H. & Grönqvist, Hans & Lindahl, Lena, 2014. "Time Preferences and Criminal Behavior," IZA Discussion Papers 8168, Institute of Labor Economics (IZA).
    14. World Bank Group, 2015. "Toward Solutions for Youth Employment," World Bank Publications - Reports 23261, The World Bank Group.

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