The relationship between videogames, time allocation decisions, and labour market outcomes – Evidence from the American Time Use Survey

Abstract

Using the American Time Use Survey (ATUS), I analyze the time allocation decisions and labor market out-comes of those who play videogames. Controlling for individual and regional characteristics, I find that among students, playing videogames is negatively associated with time spent on educational activities, and I derive estimates of this association that are similar in magnitude to other recent studies. I also find that among working-age individuals, playing videogames is negatively associated with labor supply and not associated with time spent on job search. After accounting for the nonlinear effects of playing videogames, I find that more time spent playing videogames may actually attenuate or reverse the negative association found in the linear model. This paper contributes to recent research studying the impact of playing videogames on time allocation decisions in non-experimental settings and it represents a novel analysis of its effects on working-age individuals – a growing subset of people who play videogames.