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Here Comes the Rain Again: Weather and the Intertemporal Substitution of Leisure

Marie Connolly
Journal of Labor Economics
Vol. 26, No. 1 (January 2008), pp. 73-100
DOI: 10.1086/522067
Stable URL: http://www.jstor.org/stable/10.1086/522067
Page Count: 28
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Here Comes the Rain Again: Weather and the Intertemporal  Substitution of Leisure
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Abstract

I revisit the intertemporal labor supply framework, using exogenous variations in daily weather to see how time at work varies with rain. In my model, a rainy day is associated with a lower enjoyment of leisure, effectively increasing wages and bringing more hours at work. I test the model using data from the American Time Use Survey, supplemented with daily weather. I find that, on rainy days, men shift on average 30 minutes from leisure to work. Computations give a rough estimate of the intertemporal elasticity of labor supply of around 0.01, in line with the rest of the literature.

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