Time Preferences, Informal Work and Time Poverty in Ghana

ABSTRACT Time poverty is an increasingly important dimension of welfare in developing countries, where individuals often combine long hours of paid and unpaid work under conditions of economic uncertainty. While existing studies have identified several structural determinants of time poverty, relatively little is known about the role of behavioural factors such as subjective time preferences. This study examines the relationship between subjective time preferences and time poverty in Ghana, with a particular focus on the mediating roles of committed time in informal work and consumption‐based welfare. Using data from the seventh round of the Ghana Living Standards Survey (GLSS 7) and an instrumental variable mediation framework to address potential endogeneity, we find that households headed by more impatient individuals are 3% less likely to be associated with time poverty. Decomposing this association reveals that adjustments in committed time in informal work are the dominant mediating channel, accounting for a substantial share of the total effect. The finding suggests that impatience can reduce time poverty by limiting prolonged engagement in time‐intensive informal activities. Heterogeneity analysis shows that the negative association between impatient household heads and time poverty is stronger among males, adults, urban residents and noninsured households. The results highlight the importance of incorporating behavioural preferences into analyses of time poverty and point to policies that improve work quality, welfare and labour market stability as key levers for reducing excessive time burdens.