The Welfare Effects of Time Reallocation: Evidence from Daylight Saving Time

Daylight Saving Time (DST) is currently implemented by more than seventy countries, yet we do not have a clear knowledge of how it affects individuals’ welfare. Using regression discontinuity design combined with differences-in-differences approach, find that the Spring DST causes significant decline in life satisfaction. By inducing reallocation time, transition into deteriorates sleep and increases time stress, which turn physical emotional health. After performing simple cost-benefit analysis, evidence suggestive ending would exert positive effect on welfare, namely wellbeing costs associated exceed its benefits.