The Economics of Sleep
Sleep as an Economic Question
We spend about a third of our lives asleep, and how much and how well we sleep affects productivity, health, safety and spending.
Sleep looks like the opposite of economic activity, yet it shapes how well people work, learn and make decisions.
A time budget
A day has 24 hours; time spent sleeping cannot be spent working, studying or relaxing, so sleep has an opportunity cost.
An input
Sleep is also an investment: it restores the body and mind, raising the quality of waking hours.
Why economists care
Sleep affects wages, accidents, healthcare costs and whole industries built around it.
One studies until 3 a.m. and does worse in the morning exam than one who slept well.
Tired workers make more mistakes.
- Sleep takes about a third of life.
- It has an opportunity cost.
- It is also an investment.
- It affects productivity and health.
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