Impacts of Extreme Heat on Labor Force Dynamics

Andrew Ireland (), David Johnston and Rachel Knott ()
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Andrew Ireland: Monash University
Rachel Knott: Monash University

No 2024-01, Working Papers from Centre for Health Economics, Monash University

Abstract: We use daily longitudinal data and a within-worker identification approach to examine the impacts of heat on labor force dynamics in Australia. High temperatures during 2001–2019 significantly reduced work attendance and hours worked, which were not compensated for in subsequent days and weeks. The largest reductions occurred in cooler regions and recent years, and were not solely concentrated amongst outdoor-based workers. Financial and Insurance Services was the most strongly affected industry, with temperatures above 38°C (100°F) increasing absenteeism by 15 percent. Adverse heat effects during the work commute and during outdoor work hours are shown to be key mechanisms.

Keywords: temperature; adaptation; climate change; labor supply (search for similar items in EconPapers)
JEL-codes: C23 J22 J24 Q51 (search for similar items in EconPapers)
Date: 2024-02
New Economics Papers: this item is included in nep-env
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Working Paper: Impacts of Extreme Heat on Labor Force Dynamics (2024)
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