Student Time Allocation and Scholastic Ability

This paper examines the relationship between academic ability and student allocation of time to school work, market work and leisure activities. Based on a sample of undergraduates at two U.S. universities, we find that students with greater scholastic aptitude allocate greater amounts of time to studies and to market work, while consuming lower amounts of leisure. These results indicate the existence of a dominant substitution effect in time allocation with respect to the time price of grades.