Costa-Font, Joan ORCID: 0000-0001-7174-7919 and Flèche, Sarah (2017) Parental sleep and employment: evidence from a British cohort study. CEP Discussion Papers (CEPDP1467). London School of Economics and Political Science. Centre for Economic Performance, London, UK.
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Abstract
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.
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