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The Effects of Temperature on Labor Productivity

Author

Listed:
  • Wangyang Lai

    (School of Economics, Shanghai University of Finance and Economics, Shanghai, China)

  • Yun Qiu

    (Institute for Economic and Social Research, Jinan University, Guangzhou, China)

  • Qu Tang

    (Institute for Economic and Social Research, Jinan University, Guangzhou, China)

  • Chen Xi

    (School of Economics and Management, Tsinghua University, Beijing, China)

  • Peng Zhang

    (School of Management and Economics, The Chinese University of Hong Kong, Shenzhen, China)

Abstract

This article reviews recent economic studies on the causal effects of temperature on labor productivity. The negative effects of extreme temperatures are widespread, and the magnitudes of the impact differ across social and economic factors. In addition to physical outputs, extreme temperatures also impair mental productivity, including cognition and learning. In utero exposure to extreme temperatures has profound effects on human development. Although the literature has detected various adaptation strategies, the conclusions are mixed. We discuss some limitations of existing studies and propose several directions for future research.

Suggested Citation

  • Wangyang Lai & Yun Qiu & Qu Tang & Chen Xi & Peng Zhang, 2023. "The Effects of Temperature on Labor Productivity," Annual Review of Resource Economics, Annual Reviews, vol. 15(1), pages 213-232, October.
    • Handle: RePEc:anr:reseco:v:15:y:2023:p:213-232
    DOI: 10.1146/annurev-resource-101222-125630
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    Citations

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    Cited by:

    1. Song, Yalin & Wang, Chang, 2024. "Pricing effects of extreme high temperature: Evidence from municipal corporate bonds in China," Economics Letters, Elsevier, vol. 243(C).
    2. Feriga,Moustafa Amgad Moustafa Ahmed Moustafa & Lozano Gracia,Nancy & Serneels,Pieter Maria, 2024. "The Impact of Climate Change on Work : Lessons for Developing Countries," Policy Research Working Paper Series 10682, The World Bank.
    3. Moustafa Feriga & Mancy Lozano Gracia & Pieter Serneels, 2024. "The impact of climate change on work lessons for developing countries," CSAE Working Paper Series 2024-02, Centre for the Study of African Economies, University of Oxford.
    4. Edoardo Santoni & Margherita Scarlato & Nicolò Barbieri & Caterina Conigliani, 2025. "Heat and work-related injuries: How temperature measurement affects outcomes," SEEDS Working Papers 0225, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Mar 2025.
    5. Bertrand, Jean-Louis & Chabot, Miia & Brusset, Xavier & Courquin, Valentin, 2024. "Identifying assets exposed to physical climate risk: A decision-support methodology," International Journal of Production Economics, Elsevier, vol. 276(C).
    6. Kassa,Woubet & Woldemichael,Andinet, 2024. "Hotter Planet, Hotter Factories : Uneven Impacts of Climate Change on Productivity," Policy Research Working Paper Series 10762, The World Bank.

    More about this item

    Keywords

    temperature; labor productivity; mental productivity; adaptation; early-life exposure; distributional effects;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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