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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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    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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