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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
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    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

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