THE EFFECT OF TEMPERATURE ON TIME ALLOCATION IN THE UNITED STATES: AN ANALYSIS USING THE AMERICAN TIME USE SURVEY.

Abstract

This study investigates the impact of exogenous temperature variations on time allocation patterns in the United States, for which existing literature is considerably limited. Using panel data fixed-effects and distributed lag models to analyse 2003 to 2017 data from the American Time Use Survey, this study validates previous predictions that temperature increments at the high end of the distribution lead to less time spent on outdoor leisure and more time spent on indoor leisure for individuals employed in industries less exposed to climate and the non-employed. Individuals highly exposed to climate in their workplace display time allocation patterns that are increasingly insensitive to temperature increments at the extreme end of the distribution, which suggests that they are acclimatizing to increasing temperatures induced by climate change. Finally, this study finds negligible evidence supporting the hypothesis that unpleasant temperatures today increase future demand for activities with high exposure to climate.