Does Temperature Affect Labor Productivity: Cross-Country Evidence

K. Yildirim, C. Koyuncu () and Koyuncu J.

Applied Econometrics and International Development, 2009, vol. 9, issue 1

Abstract: This analysis, by using a cross-section data of 111 countries for different samples of 1997-2006 period and Ordinary Least Square (OLS) estimation technique, tests the hypothesis that higher temperature conversely affects labor productivity in a country. The results indicate that there is statistically significant negative relationship between temperature and labor productivity level of a country and this finding remains valid for all samples. Also we identified that temperature level of a country is the second most contributing factor to the explanation of labor productivity level in that particular country. The most contributing factor to labor productivity level is being a high income country.

Keywords: Temperature; Climate; Labor Productivity; Standardized Variables; Cross-Section Study. (search for similar items in EconPapers)
JEL-codes: C21 J24 O40 Q54 Q56 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (4)

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