The Economics of Sleep
The Cost of Sleep Deprivation
Researchers estimate that poor sleep costs economies billions through lost productivity, accidents and health problems.
A hidden drag on GDP.
Estimates
A 2016 RAND study estimated that insufficient sleep costs the US economy about $400 billion a year, roughly 2 per cent of GDP, with smaller but significant costs in Japan, the UK and Germany.
Channels
Absenteeism, working while tired, accidents and higher health spending.
Caution
Such figures are rough, based on modelling assumptions.
Wages
One study exploiting time zone borders found that an extra hour of average sleep is associated with significantly higher long-run wages.
A drowsy driver causes an accident, with costs for hospitals, insurers and families.
They depend on assumptions.
- RAND estimated large losses.
- Accidents and lost work are channels.
- Numbers are approximate.
- Sleep is linked to wages.
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