The effect of education on time preferences

- I examine whether education increases patience by analyzing a case study of a public college in Mexico City where admission decision are determined through a lottery.
- The lottery resulted in one group acquiring more education than the other.
- I measured their time preferences with a series of hypothetical inter-temporal choice questions. One set of questions used monetary rewards, and a second set used trips of different lengths.
- I compare response of those induced to acquire more education, with the control group, and find that individuals who were successful in the admission lottery were, on average, more patient. The difference is statistically significant and robust to alternative specification for questions using the trip rewards, but statistically insignificant for those using monetary rewards.
- Evidence is suggestive of a causal effect of education on time preferences.

I examine whether education increases patience by analyzing a case study of a public college in Mexico City where admission decisions are determined through a lottery. Applicants who were successful in the draw were more likely to be studying in the following years. I surveyed the applicants to this college almost two years after the admission decision was made and measured their time preferences with a series of hypothetical inter-temporal choice questions. I find that individuals who acquired more education due to the admission lottery were, on average, more patient, which suggests there may be a causal effect of education on time preferences.