A short article in The Economist about problems with Spain’s work hours suggests that if the Spaniards were in the “right” time zone, according to GMT standards, its productivity would increase.
Plenty of research in recent years shows that the later the sun sets, the lower the productivity of a place.
Researchers in the U.S. and elsewhere have studied places where, in a single time zone, you might get dramatically different sunrise and sunset times. China is an interesting example because the time differences are dramatic. The whole country, big as it is, works on unified Beijing time. On the vernal equinox, sunrise can be as early as 3:43 a.m. or as late as 6:27 a.m., depending on which side of the country you’re in (Gibson & Schrader, 2015). The sun might set as early as 7:27 p.m. or as late as 9:56.
If it went by GMT norms, China would span three hours, just as the continental United States does.
But who cares what time the sun sets or rises?
As it turns out, businesses should care.
Where the sun sets later, people generally go to bed later. However, they still wake up at the same time because businesses and schools start at a certain time, and that time doesn’t change throughout the year. A work day in the U.S. typically starts around 8 or 9 in the morning. If you usually get up at 6:30 to give yourself enough time to get ready and commute to work, you’re not going to sleep later in the summer just because you tend to stay up later than you do in the winter.
Indeed, data confirm that people don’t change what time they get up even when they change what time they go to bed. And a later sunset is correlated with later bedtimes.
So why do time zones affect productivity?
When people sleep less, they tend to earn less. Rosekind et al. (2010) estimated economic losses due to insufficient sleep to be as high as $3,156 less per employee per year. Gibson and Shrader (2015) say it’s to the tune of 0.5 percent on average in the short term, and 4.5 percent on average in the long term (Gibson & Shrader, 2015).
The cause and effect that lack of sleep leads to less money is probably not so direct, but other studies tease them out. Losing a mere 30 minutes of sleep per night, consistently, is enough to cause cumulative sleep deprivation, and cumulative sleep deprivation results in lower cognitive abilities. Lower cognitive abilities are associated with lower economic outcomes, financial decisions, and economic development (Giuntella et al., citingMcArdle et al., 2011; Banks and Oldfield, 2007; and Hanushek and Woessmann, 2008).
The economy of Spain isn’t going to change significantly by shifting the clock a few hours this way or that. It might help put Spaniards in the office at times that overlap more with their European counterparts, but it doesn’t solve some of the other cultural issues that inhibit productivity, such as long mid-day siestas, which the author of The Economist article points acknowledges. But it could be a starting point.
Banks, J. & Oldfield, Z. (2007). Understanding pensions: cognitive function, numerical ability and retirement saving. Fiscal Studies 28 (2): 143–170.
Gibson, M. & Schrader, J. (2015). Time Use and Productivity: The Wage Returns to Sleep. [working paper, July 16, 2015]
Giuntella, O., Han, W., & Mazzonna, F. (2016). Circadian Rhythms, Sleep and Cognitive Skills. Evidence From an Unsleeping Giant. Discussion Paper No. 9774, IZA (The Institute for the Study of Labor, Bonn, Germany).
Hanushek, E. A. & Woessmann, L. (2008). The role of cognitive skills in economic development. Journal of Economic Literature: 607–668.
McArdle, J. J., Smith, J. P., & Willis, R. (2011). Cognition and economic outcomes in the health and retirement survey. In: Explorations in the Economics of Aging. University of Chicago Press: 209–233.
Rosekind, M., Gregory, K., Mallis, M., Brandt, S., Seal, B., & Lerner, D. (2010). The Cost of Poor Sleep: Workplace Productivity Loss and Associated Costs. Journal Of Occupational And Environmental Medicine, 52(1), 91-98. doi:10.1097/jom.0b013e3181c78c30.
Image by Dennis S. Hurd, CC.