The association between chronotype and wages at mid-age

Area of Science:

• Socio-economics
• Chronobiology
• Labor economics

Background:

• Sleep significantly influences economic outcomes, notably wages.
• The precise mechanisms linking sleep patterns to wage determination are not fully understood.
• Chronotype, an individual's natural inclination towards morning or evening activity, is a key aspect of sleep behavior.

Purpose of the Study:

• To investigate the relationship between chronotype (morning lark vs. evening owl) and mid-life wages.
• To propose and test a model connecting chronotype to wages via human, social, and health capital.
• To explore how life course choices mediate the chronotype-wage association.

Main Methods:

• Utilized data from the 46-year-old follow-up of the Northern Finland Birth Cohort (1966).
• Integrated cohort data with Finnish Tax Administration registers.
• Employed statistical analysis to examine indirect effects of chronotype on wages through work experience, trust, and health.

Main Results:

• Evening chronotype demonstrated a significant indirect negative effect on wages.
• This negative effect was mediated by lower accumulated work experience and poorer health outcomes.
• The total indirect effect on average wages for evening types was approximately -4%, most pronounced in male workers.

Conclusions:

• Evening chronotype is associated with reduced accumulation of human, social, and health capital.
• These deficits, stemming from a mismatch with typical work hours, negatively impact wages.
• Findings underscore the socio-economic relevance of chronotype, given its prevalence in the population.