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Here Comes the Rain Again: Weather and the Intertemporal Substitution of Leisure

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  • Marie Connolly

Abstract

I revisit the intertemporal labor supply framework, using exogenous variations in daily weather to see how time at work varies with rain. In my model, a rainy day is associated with a lower enjoyment of leisure, effectively increasing wages and bringing more hours at work. I test the model using data from the American Time Use Survey, supplemented with daily weather. I find that, on rainy days, men shift on average 30 minutes from leisure to work. Computations give a rough estimate of the intertemporal elasticity of labor supply of around 0.01, in line with the rest of the literature.

Suggested Citation

  • Marie Connolly, 2008. "Here Comes the Rain Again: Weather and the Intertemporal Substitution of Leisure," Journal of Labor Economics, University of Chicago Press, vol. 26(1), pages 73-100.
  • Handle: RePEc:ucp:jlabec:v:26:y:2008:p:73-100
    DOI: 10.1086/522067
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    References listed on IDEAS

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    1. Colin Camerer & Linda Babcock & George Loewenstein & Richard Thaler, 1997. "Labor Supply of New York City Cabdrivers: One Day at a Time," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 407-441.
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    4. Henry S. Farber, 2004. "Reference-Dependent Preferences and Labor Supply: The Case of New York City Taxi Drivers," Working Papers 876, Princeton University, Department of Economics, Industrial Relations Section..
    5. John C. Ham & Kevin T. Reilly, 2002. "Testing Intertemporal Substitution, Implicit Contracts, and Hours Restriction Models of the Labor Market Using Micro Data," American Economic Review, American Economic Association, vol. 92(4), pages 905-927, September.
    6. Biddle, Jeff E, 1988. "Intertemporal Substitution and Hours Restrictions," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 347-351, May.
    7. Daniel S. Hamermesh, 1996. "Workdays, Workhours, and Work Schedules: Evidence for the United States and Germany," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number www.
    8. Henry S. Farber, 2004. "Reference-Dependent Preferences and Labor Supply: The Case of New York City Taxi Drivers," Working Papers 876, Princeton University, Department of Economics, Industrial Relations Section..
    9. Lucas, Robert E, Jr & Rapping, Leonard A, 1969. "Real Wages, Employment, and Inflation," Journal of Political Economy, University of Chicago Press, vol. 77(5), pages 721-754, Sept./Oct.
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