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Down the Rabbit Hole: Habit-formation in Internet Use among Unemployed Workers

Author

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  • Tristan Potter

    (Drexel University)

Abstract

This paper tests for habit-formation in leisure-related internet use (LIU) using time-diary data from a panel of unemployed workers. Drawing on insights from the consumption-habit literature, I use a model of intertemporal time allocation to derive a test for habit-formation in leisure activities. The data reveal strong evidence of habit-formation in LIU among the Generation-X age cohort. With the exception of reading, I find no evidence of habit-formation in offline leisure.

Suggested Citation

  • Tristan Potter, 2022. "Down the Rabbit Hole: Habit-formation in Internet Use among Unemployed Workers," School of Economics Working Paper Series 2022-4, LeBow College of Business, Drexel University.
    • Handle: RePEc:ris:drxlwp:2022_004
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    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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