Hot Wages: How Do Heat Waves Change the Earnings Distribution?

Giulia Valenti and Francesco Vona

No 348848, FEEM Working Papers from Fondazione Eni Enrico Mattei (FEEM)

Abstract: We investigate the impact of heat waves on individual earnings using retrospective panel data (SHARE) matched with high-resolution weather data (E-OBS), covering over 32000 workers across 14 European countries (1955–2019) from diverse sectors and occupations. Exploiting plausibly exogenous variation in heat wave exposure across cohorts within the same generation and region, and controlling for individual fixed effects, occupational sorting, and covariate balance, we find each additional heat wave day reduces earnings by 0.31%. Losses are larger in outdoor, manual, and clerical occupations, disproportionately affecting lower-income workers and those from disadvantaged family backgrounds, but are mitigated in countries with centralized collective bargaining.

Keywords: Environmental Economics and Policy; Labor and Human Capital (search for similar items in EconPapers)
Pages: 73
Date: 2024-12-30
New Economics Papers: this item is included in nep-env, nep-eur and nep-hea
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Working Paper: Hot Wages: How Do Heat Waves Change the Earnings Distribution? (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:feemwp:348848

DOI: 10.22004/ag.econ.348848

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