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Temperature and work: Time allocated to work under varying climate and labor market conditions

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  • Neidell, Matthew
  • Zivin, Joshua Graff
  • Sheahan, Megan
  • Willwerth, Jacqueline
  • Fant, Charles
  • Sarofim, Marcus
  • Martinich, Jeremy

Abstract

Workers in climate exposed industries such as agriculture, construction, and manufacturing face increased health risks of working on high temperature days and may make decisions to reduce work on high-heat days to mitigate this risk. Utilizing the American Time Use Survey (ATUS) for the period 2003 through 2018 and historical weather data, we model the relationship between daily temperature and time allocation, focusing on hours worked by high-risk laborers. The results indicate that labor allocation decisions are context specific and likely driven by supply-side factors. We do not find a significant relationship between temperature and hours worked during the Great Recession (2008-2014), perhaps due to high competition for employment, however during periods of economic growth (2003-2007, 2015-2018) we find a significant reduction in hours worked on high-heat days. During periods of economic growth, for every degree above 90 on a particular day, the average high-risk worker reduces their time devoted to work by about 2.6 minutes relative to a 90-degree day. This effect is expected to intensify in the future as temperatures rise. Applying the modeled relationships to climate projections through the end of century, we find that annual lost wages resulting from decreased time spent working on days over 90 degrees across the United States range from $36.7 to $80.0 billion in 2090 under intermediate and high emission futures, respectively.

Suggested Citation

  • Neidell, Matthew & Zivin, Joshua Graff & Sheahan, Megan & Willwerth, Jacqueline & Fant, Charles & Sarofim, Marcus & Martinich, Jeremy, 2021. "Temperature and work: Time allocated to work under varying climate and labor market conditions," University of California at San Diego, Economics Working Paper Series qt8031v4f4, Department of Economics, UC San Diego.
    • Handle: RePEc:cdl:ucsdec:qt8031v4f4
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    1. 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.
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    Cited by:

    1. Sam Cosaert & Adrián Nieto & Konstantinos Tatsiramos, 2023. "Temperature and the Timing of Work," CESifo Working Paper Series 10681, CESifo.
    2. Leonardo Bortolan & Atreya Dey & Luca Taschini, 2024. "Volatile Temperatures and Their Effects on Equity Returns and Firm Performance," CESifo Working Paper Series 11438, CESifo.
    3. Valenti, Giulia & Vona, Francesco, 2024. "Hot Wages: How Do Heat Waves Change the Earnings Distribution?," FEEM Working Papers 348848, Fondazione Eni Enrico Mattei (FEEM).
    4. Cosaert, Sam & Nieto, Adrián & Tatsiramos, Konstantinos, 2023. "Temperature and Joint Time Use," IZA Discussion Papers 16175, Institute of Labor Economics (IZA).
    5. Giulia Valenti & Francesco Vona, 2024. "Hot Wages: How Do Heat Waves Change the Earnings Distribution?," Working Papers 2024.31, Fondazione Eni Enrico Mattei.

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