Return to Sleep
DP Number DP2019-001
Date October, 2019
Author Shinya Kajitani
JEL Classification codes I12; J24; J31
Keywords Labor productivity;Sleep duration;Time use;Wage;Working hours
Most people spend a substantial amount of time sleeping. I examine the causal effect of sleep on labor productivity, utilizing panel datasets for Japanese males. I deal with the potential endogeneity of the decision about how many hours to sleep by using a fixed effects model with an instrumental variables estimation technique. My findings show that a one-hour increase in weekly sleeping hours increases the wage rate by 4-6%. Sleep duration does indeed enhance labor productivity for Japanese males.