The Effects of Temperature on Labor Productivity

Author:

Lai Wangyang1,Qiu Yun234,Tang Qu2,Xi Chen5,Zhang Peng67

Affiliation:

1. School of Economics, Shanghai University of Finance and Economics, Shanghai, China

2. Institute for Economic and Social Research, Jinan University, Guangzhou, China

3. Institute for Global Health and Development, Peking University, Beijing, China

4. Research Center of Low Carbon Economy for Guangzhou Region, Jinan University, Guangzhou, China

5. School of Economics and Management, Tsinghua University, Beijing, China;

6. School of Management and Economics, The Chinese University of Hong Kong, Shenzhen, China

7. Shenzhen Finance Institute, 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.

Publisher

Annual Reviews

Subject

Economics and Econometrics

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