The impacts of extreme weather on formal employment: Evidence from Brazil

Danae Hernández-Cortés and Sophie Mathes

No wp-2026-106, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper analyses the effects of extreme weather events on local labour markets in Brazil. We combine comprehensive administrative data of the universe of formal employment during 2005-2019 with data on the most common extreme weather events in Brazil. Constructing measures of extreme weather relative to typical local conditions, we find that an additional hot day above the pre-decadal 85th (99th) percentile reduces employment by .01 (.04)% and the number of firms by .01 (.02)% at the municipality level.

Keywords: Weather shock; Labour market; Brazil (search for similar items in EconPapers)
Date: 2026
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