Ageing and the allocation of time among older Americans

Using longitudinal time use data from the Consumption and Activities Mail Survey of the U.S. Health and Retirement Study, the paper examines changes in time allocation as individuals grow older and transition to retirement. Accounting for individual observed and unobserved heterogeneity, I find that time spent on personal care and leisure sharply increases with age, while time spent on home production does not significantly vary with age, except for a small increase around retirement ages. Transition from working to retirement is associated with more time spent on all non-work activities. However, the relative allocation of non-market time across various activities does not substantially vary when people retire, thereby suggesting continuity in habits and behaviors. A large share of the time used for paid work is re-allocated to watching TV, while physical leisure does not increase after retirement.