Spending less time at work might not make you happier

Emily Oster, associate professor of economics at the University of Chicago Booth School of Business, recently came to an interesting conclusion: even though she loves her family more than she loves working, she probably wouldn't be happier if she worked less and spent more time at home. Here, Oster explains how the principles of economics can help you figure out a time budget that maximizes happiness and appreciation, and reduces boredom and frustration.

Q: Can you explain how the principle of "diminishing marginal utility" applies to happiness?
A: To think about it a little more generally, we think, in economics, that consumption has a diminishing marginal utility, which means that the more you have of something, the less value the next unit has. If you had one orange, maybe you would really like another. But if you have 10, you're going to place less value on the eleventh. That's basically true for everything we consume, but it can also be true for time. The more time you spend on something, the less value you place on that time. If I've already spent six hours reading a book, I'm probably less excited about the next hour than I would have been if it was the first hour.

Q: Can you explain how this pertains to your own happiness-related time budget?
A: Thinking about what would make me the most happy, I was trying to convey the idea that you have some diminished marginal utility of your time at work and with your family. The first hour with your spouse is great, but as hours go by, it's not that you don't enjoy it, but rather that you don't like it as much. Even though you love your family way more than your job, you might not want to spend more time with them, depending on how quickly the value of being with them diminishes.

Q: You use the example of half an orange and half a banana instead of a whole piece of either fruit; is variety truly the spice of life?
A: That's one way to say it. Or absence makes the heart grow fonder.

Q: So how can people go about figuring out the happiest possible time split?
A: When you think about what you want to do, think about the margins. It's easy to say, 'I love my kid more than I love my job so I would be happier if I quit my job and spent all my time with my kid'. But rather than thinking about it in that way, think about the margins: If I had another hour, doing whatever, what would I do with it? You want the happiness in the last hour of every activity to be roughly equal, otherwise you could benefit from switching your schedule around. For example, if you're really unhappy watching TV after three hours, but completely elated on the third hour of playing with your kid, and totally satisfied after working for eight hours, then there's probably some room to cut back on TV and introduce more play time with your kid. And that's not the same as which thing you like the best.

Of course, this is much easier to apply to things like, 'Should I keep reading a book or start watching television.' When you're talking about budgeting time for your relationships, part of being happy is making them happy, so this is only one factor.

But, if you could be happier spending more time with your kid, then you definitely want to do it.