IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v82y2024icp264-276.html
   My bibliography  Save this article

Effects of temperature on job insecurity: Evidence from Australia

Author

Listed:
  • Bui, Thanh-Huong
  • Bui, Ha-Phuong
  • Pham, Thi Mai-Anh

Abstract

This study examines the relationship between temperature fluctuations and job insecurity in Australia, a country increasingly experiencing the impacts of climate change. Utilising data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey combined with satellite-based temperature data, we assess the influence of temperature deviations on perceptions of job insecurity. Our analysis reveals that higher temperatures are significantly associated with increased job insecurity. This effect is more pronounced in specific states such as New South Wales, Queensland, and Western Australia. Mechanism analysis identifies mental health deterioration and energy poverty as key mediators in this relationship, explaining how environmental stressors translate into employment-related anxieties. Our study’s findings highlight the need for interventions that address both the direct and indirect impacts of climate change on the labour market.

Suggested Citation

  • Bui, Thanh-Huong & Bui, Ha-Phuong & Pham, Thi Mai-Anh, 2024. "Effects of temperature on job insecurity: Evidence from Australia," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 264-276.
    • Handle: RePEc:eee:ecanpo:v:82:y:2024:i:c:p:264-276
    DOI: 10.1016/j.eap.2024.03.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592624000663
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2024.03.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Letta, Marco & Montalbano, Pierluigi & Tol, Richard S.J., 2018. "Temperature shocks, short-term growth and poverty thresholds: Evidence from rural Tanzania," World Development, Elsevier, vol. 112(C), pages 13-32.
    2. Olivier Deschênes & Michael Greenstone, 2011. "Climate Change, Mortality, and Adaptation: Evidence from Annual Fluctuations in Weather in the US," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 152-185, October.
    3. Reichert, Arndt R. & Tauchmann, Harald, 2017. "Workforce reduction, subjective job insecurity, and mental health," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 187-212.
    4. Zhang, Peng & Deschenes, Olivier & Meng, Kyle & Zhang, Junjie, 2018. "Temperature effects on productivity and factor reallocation: Evidence from a half million chinese manufacturing plants," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 1-17.
    5. Jonathan Colmer, 2021. "Temperature, Labor Reallocation, and Industrial Production: Evidence from India," American Economic Journal: Applied Economics, American Economic Association, vol. 13(4), pages 101-124, October.
    6. Kalle Hirvonen, 2016. "Temperature Changes, Household Consumption, and Internal Migration: Evidence from Tanzania," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 1230-1249.
    7. Eve Caroli & Mathilde Godard, 2016. "Does job insecurity deteriorate health?," Health Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 131-147, February.
    8. Joshua Graff Zivin & Matthew Neidell, 2014. "Temperature and the Allocation of Time: Implications for Climate Change," Journal of Labor Economics, University of Chicago Press, vol. 32(1), pages 1-26.
    9. Nam, Taewoo, 2019. "Technology usage, expected job sustainability, and perceived job insecurity," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 155-165.
    10. Feeny, Simon & Trinh, Trong-Anh & Zhu, Anna, 2021. "Temperature shocks and energy poverty: Findings from Vietnam," Energy Economics, Elsevier, vol. 99(C).
    11. Garth Heutel & Nolan H. Miller & David Molitor, 2021. "Adaptation and the Mortality Effects of Temperature across U.S. Climate Regions," The Review of Economics and Statistics, MIT Press, vol. 103(4), pages 740-753, October.
    12. Mullins, Jamie T. & White, Corey, 2020. "Can access to health care mitigate the effects of temperature on mortality?," Journal of Public Economics, Elsevier, vol. 191(C).
    13. Graff Zivin, Joshua & Song, Yingquan & Tang, Qu & Zhang, Peng, 2020. "Temperature and high-stakes cognitive performance: Evidence from the national college entrance examination in China," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    14. Awaworyi Churchill, Sefa & Smyth, Russell & Trinh, Trong-Anh, 2022. "Energy poverty, temperature and climate change," Energy Economics, Elsevier, vol. 114(C).
    15. E. Somanathan & Rohini Somanathan & Anant Sudarshan & Meenu Tewari, 2021. "The Impact of Temperature on Productivity and Labor Supply: Evidence from Indian Manufacturing," Journal of Political Economy, University of Chicago Press, vol. 129(6), pages 1797-1827.
    16. Chen, Shuai & Gong, Binlei, 2021. "Response and adaptation of agriculture to climate change: Evidence from China," Journal of Development Economics, Elsevier, vol. 148(C).
    17. Fishman, Ram & Carrillo, Paul & Russ, Jason, 2019. "Long-term impacts of exposure to high temperatures on human capital and economic productivity," Journal of Environmental Economics and Management, Elsevier, vol. 93(C), pages 221-238.
    18. Nawaz, Saima, 2021. "Energy poverty, climate shocks, and health deprivations," Energy Economics, Elsevier, vol. 100(C).
    19. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.
    20. Voon, Jan P. & Ma, Yiu C., 2014. "Global financial crisis and perceptions of job insecurity: The China case," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 53(C), pages 138-148.
    21. Trinh, Trong-Anh & Appau, Samuelson & Awaworyi Churchill, Sefa & Farrell, Lisa, 2022. "Temperature shocks and gambling," Energy Economics, Elsevier, vol. 115(C).
    22. Melissa LoPalo, 2023. "Temperature, Worker Productivity, and Adaptation: Evidence from Survey Data Production," American Economic Journal: Applied Economics, American Economic Association, vol. 15(1), pages 192-229, January.
    23. Anthony Heyes & Soodeh Saberian, 2019. "Temperature and Decisions: Evidence from 207,000 Court Cases," American Economic Journal: Applied Economics, American Economic Association, vol. 11(2), pages 238-265, April.
    24. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2009. "Temperature and Income: Reconciling New Cross-Sectional and Panel Estimates," American Economic Review, American Economic Association, vol. 99(2), pages 198-204, May.
    25. Yue Hua & Yun Qiu & Xiaoqing Tan, 2023. "The effects of temperature on mental health: evidence from China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1293-1332, July.
    26. Krista Lynn Minnotte & Deniz Yucel, 2018. "Work–Family Conflict, Job Insecurity, and Health Outcomes Among US Workers," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(2), pages 517-540, September.
    27. Watson Nicole & Wooden Mark, 2021. "The Household, Income and Labour Dynamics in Australia (HILDA) Survey," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 241(1), pages 131-141, February.
    28. Karlsson, Martin & Ziebarth, Nicolas R., 2018. "Population health effects and health-related costs of extreme temperatures: Comprehensive evidence from Germany," Journal of Environmental Economics and Management, Elsevier, vol. 91(C), pages 93-117.
    29. Cai, Xiqian & Lu, Yi & Wang, Jin, 2018. "The impact of temperature on manufacturing worker productivity: Evidence from personnel data," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 889-905.
    30. Fiori, Francesca & Rinesi, Francesca & Spizzichino, Daniele & Di Giorgio, Ginevra, 2016. "Employment insecurity and mental health during the economic recession: An analysis of the young adult labour force in Italy," Social Science & Medicine, Elsevier, vol. 153(C), pages 90-98.
    31. Giuliano Masiero & Fabrizio Mazzonna & Michael Santarossa, 2022. "The effect of absolute versus relative temperature on health and the role of social care," Health Economics, John Wiley & Sons, Ltd., vol. 31(6), pages 1228-1248, June.
    32. Mullins, Jamie T. & White, Corey, 2019. "Temperature and mental health: Evidence from the spectrum of mental health outcomes," Journal of Health Economics, Elsevier, vol. 68(C).
    33. Andrew Benito, 2006. "Does job insecurity affect household consumption?," Oxford Economic Papers, Oxford University Press, vol. 58(1), pages 157-181, January.
    34. Kerstin K. Zander & Wouter J. W. Botzen & Elspeth Oppermann & Tord Kjellstrom & Stephen T. Garnett, 2015. "Heat stress causes substantial labour productivity loss in Australia," Nature Climate Change, Nature, vol. 5(7), pages 647-651, July.
    35. Kalkuhl, Matthias & Wenz, Leonie, 2020. "The impact of climate conditions on economic production. Evidence from a global panel of regions," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    36. Harish, Santosh & Singh, Nishmeet & Tongia, Rahul, 2020. "Impact of temperature on electricity demand: Evidence from Delhi and Indian states," Energy Policy, Elsevier, vol. 140(C).
    37. Teevrat Garg & Maulik Jagnani & Vis Taraz, 2020. "Temperature and Human Capital in India," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 7(6), pages 1113-1150.
    38. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2012. "Temperature Shocks and Economic Growth: Evidence from the Last Half Century," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(3), pages 66-95, July.
    39. Jensen, Robert T. & Richter, Kaspar, 2004. "The health implications of social security failure: evidence from the Russian pension crisis," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 209-236, January.
    40. Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
    41. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2008. "Climate Change and Economic Growth: Evidence from the Last Half Century," NBER Working Papers 14132, National Bureau of Economic Research, Inc.
    42. Zhang, Shaohui & Guo, Qinxin & Smyth, Russell & Yao, Yao, 2022. "Extreme temperatures and residential electricity consumption: Evidence from Chinese households," Energy Economics, Elsevier, vol. 107(C).
    43. Fernando M. Aragón & Francisco Oteiza & Juan Pablo Rud, 2021. "Climate Change and Agriculture: Subsistence Farmers' Response to Extreme Heat," American Economic Journal: Economic Policy, American Economic Association, vol. 13(1), pages 1-35, February.
    44. Inmaculada Silla & Nele Cuyper & Francisco Gracia & José Peiró & Hans Witte, 2009. "Job Insecurity and Well-Being: Moderation by Employability," Journal of Happiness Studies, Springer, vol. 10(6), pages 739-751, December.
    45. Sefa Awaworyi Churchill & Russell Smyth & Trong‐Anh Trinh, 2023. "Crime, Weather and Climate Change in Australia," The Economic Record, The Economic Society of Australia, vol. 99(324), pages 84-107, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dang, Hai-Anh H & Hallegatte, Stephane & Trinh, Trong-Anh, 2023. "Does Global Warming Worsen Poverty and Inequality? An Updated Review," IZA Discussion Papers 16570, Institute of Labor Economics (IZA).
    2. Li, Xue & Smyth, Russell & Xin, Guangyi & Yao, Yao, 2023. "Warmer temperatures and energy poverty: Evidence from Chinese households," Energy Economics, Elsevier, vol. 120(C).
    3. Sam Cosaert & Adrián Nieto & Konstantinos Tatsiramos, 2023. "Temperature and Joint Time Use," CESifo Working Paper Series 10464, CESifo.
    4. Yan Chen & Xiaohong Chen & Hongshan Ai & Xiaoqing Tan, 2022. "Temperature and Migration Intention: Evidence from the Unified National Graduate Entrance Examination in China," IJERPH, MDPI, vol. 19(16), pages 1-23, August.
    5. Feriga, Moustafa & Lozano Gracia, Nancy & Serneels, Pieter, 2024. "The Impact of Climate Change on Work Lessons for Developing Countries," IZA Discussion Papers 16914, Institute of Labor Economics (IZA).
    6. Cui, Xiaomeng & Gafarov, Bulat & Ghanem, Dalia & Kuffner, Todd, 2024. "On model selection criteria for climate change impact studies," Journal of Econometrics, Elsevier, vol. 239(1).
    7. Picchio, Matteo & van Ours, Jan C., 2024. "The impact of high temperatures on performance in work-related activities," Labour Economics, Elsevier, vol. 87(C).
    8. 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.
    9. Li Chen & Bin Jiang & Chuan Wang, 2023. "Climate change and urban total factor productivity: evidence from capital cities and municipalities in China," Empirical Economics, Springer, vol. 65(1), pages 401-441, July.
    10. Awaworyi Churchill, Sefa & Smyth, Russell & Trinh, Trong-Anh, 2022. "Energy poverty, temperature and climate change," Energy Economics, Elsevier, vol. 114(C).
    11. Jaqueline Oliveira & Bruno Palialol & Paula Pereda, 2021. "Do temperature shocks affect non-agriculture wages in Brazil? Evidence from individual-level panel data," Working Papers, Department of Economics 2021_13, University of São Paulo (FEA-USP).
    12. Naveen Kumar & Dibyendu Maiti, 2024. "The Dynamic Causal Impact of Climate Change on Economic Activity - A Disaggregated Panel Analysis of India," Working papers 345, Centre for Development Economics, Delhi School of Economics.
    13. Hailemariam, Abebe & Awaworyi Churchill, Sefa & Appau, Samuelson, 2023. "Temperature, health and wellbeing in Australia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 106(C).
    14. Benedikt Janzen, 2022. "Temperature and Mental Health: Evidence from Helpline Calls," Papers 2207.04992, arXiv.org, revised Nov 2022.
    15. Li, Xue & Smyth, Russell & Yao, Yao, 2023. "Extreme temperatures and out-of-pocket medical expenditure: Evidence from China," China Economic Review, Elsevier, vol. 77(C).
    16. Song, Malin & Wang, Jianlin & Zhao, Jiajia, 2023. "Effects of rising and extreme temperatures on production factor efficiency: Evidence from China's cities," International Journal of Production Economics, Elsevier, vol. 260(C).
    17. Jimmy Karlsson, 2021. "Temperature and Exports: Evidence from the United States," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(2), pages 311-337, October.
    18. Chen, Fanglin & Zhang, Xin & Chen, Zhongfei, 2023. "Behind climate change: Extreme heat and health cost," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 101-110.
    19. Zhang, Guoxing & Shen, Lin & Su, Bin, 2023. "Temperature change and daily urban-rural residential electricity consumption in northwestern China: Responsiveness and inequality," Energy Economics, Elsevier, vol. 126(C).
    20. Trinh, Trong-Anh & Appau, Samuelson & Awaworyi Churchill, Sefa & Farrell, Lisa, 2022. "Temperature shocks and gambling," Energy Economics, Elsevier, vol. 115(C).

    More about this item

    Keywords

    Australia; Temperature; Job insecurity; Mental health; Energy poverty;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:82:y:2024:i:c:p:264-276. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.