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Does Temperature Affect Labor Productivity: Cross-Country Evidence


  • Yildirim, K.
  • Koyuncu, C.


  • Koyuncu J.


This analysis, by using a cross-section data of 111 countries for different samples of 1997-2006 period and Ordinary Least Square (OLS) estimation technique, tests the hypothesis that higher temperature conversely affects labor productivity in a country. The results indicate that there is statistically significant negative relationship between temperature and labor productivity level of a country and this finding remains valid for all samples. Also we identified that temperature level of a country is the second most contributing factor to the explanation of labor productivity level in that particular country. The most contributing factor to labor productivity level is being a high income country.

Suggested Citation

  • Yildirim, K. & Koyuncu, C. & Koyuncu J., 2009. "Does Temperature Affect Labor Productivity: Cross-Country Evidence," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 9(1).
  • Handle: RePEc:eaa:aeinde:v:9:y:2009:i:1_3

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    References listed on IDEAS

    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Lecocq, Franck & Shalizi, Zmarak, 2007. "How might climate change affect economic growth in developing countries ? a review of the growth literature with a climate lens," Policy Research Working Paper Series 4315, The World Bank.
    3. Masters, William A & McMillan, Margaret S, 2001. "Climate and Scale in Economic Growth," Journal of Economic Growth, Springer, vol. 6(3), pages 167-186, September.
    4. Fankhauser, Samuel & S.J. Tol, Richard, 2005. "On climate change and economic growth," Resource and Energy Economics, Elsevier, vol. 27(1), pages 1-17, January.
    5. Enrico Spolaore & Alberto Alesina & Romain Wacziarg, 2000. "Economic Integration and Political Disintegration," American Economic Review, American Economic Association, vol. 90(5), pages 1276-1296, December.
    6. Francisco Alcalá & Antonio Ciccone, 2004. "Trade and Productivity," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 613-646.
    7. Stephen M. Miller & Mukti P. Upadhyay, 1997. "The Effects of Trade Orientation and Human Capital on Total Factor Productivity," Working papers 1997-07, University of Connecticut, Department of Economics.
    8. Sanghoon Ahn & Philip Hemmings, 2000. "Policy Influences on Economic Growth in OECD Countries: An Evaluation of the Evidence," OECD Economics Department Working Papers 246, OECD Publishing.
    9. Steve Dowrick, 1994. "Openness and Growth," RBA Annual Conference Volume,in: Philip Lowe & Jacqueline Dwyer (ed.), International Intergration of the Australian Economy Reserve Bank of Australia.
    10. Horowitz, John, 2001. "The Income-Temperature Relationship in a Cross-Section of Countries and Its Implications for Global Warming," Working Papers 197598, University of Maryland, Department of Agricultural and Resource Economics.
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    Cited by:

    1. Fisher-Vanden, Karen & Mansur, Erin T. & Wang, Qiong (Juliana), 2015. "Electricity shortages and firm productivity: Evidence from China's industrial firms," Journal of Development Economics, Elsevier, vol. 114(C), pages 172-188.
    2. repec:ibn:ijefaa:v:9:y:2017:i:5:p:71-76 is not listed on IDEAS

    More about this item


    Temperature; Climate; Labor Productivity; Standardized Variables; Cross-Section Study.;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth


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