2018
Working Paper
HBS Working Paper Series

Valuing Time Over Money Predicts Happiness After a Major Life Transition: A Pre-Registered Longitudinal Study of Graduating Students

By: Ashley V. Whillans and Elizabeth W. Dunn

Format:Print
| Language:English
| Pages:34

Abstract

When making major life decisions—such as choosing what to do after graduation—is it better to prioritize time or money? In a pre-registered longitudinal study of 1,232 graduating university students, respondents who valued time over money chose more intrinsically rewarding activities and were happier one year after graduation. These results remained significant controlling for baseline happiness, potential confounds such as materialism and socioeconomic status, and when using alternative model specifications. These findings extend prior research by showing that the tendency to value time over money is not only predictive of daily consumer choices, but also of major life decisions. Additionally, this research clarifies the direction of the observed associations between valuing time and money and happiness, showing that valuing time over money uniquely contributes to well-being, in part by encouraging intrinsic motivation. Together, this work sheds new light on whether, when and how valuing time shapes happiness.