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Long-term impacts of exposure to high temperatures on human capital and economic productivity

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Listed:
  • Fishman, Ram
  • Carrillo, Paul
  • Russ, Jason

Abstract

Weather anomalies have a range of adverse contemporaneous impacts on health and socio-economic outcomes. This paper tests if temperature anomalies around the time of birth can have long-term impacts on individuals' economic productivity. Using unique data sets on historical weather and earnings, place and date of birth of all 1.5 million formal employees in Ecuador, we find that individuals who have experienced in-utero temperatures that are 1 °C above average are less educated and earn about 0.7% less as adults. Results are robust to alternative specifications and falsification tests and suggest that warming may have already caused adverse long-term economic impacts.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jeeman:v:93:y:2019:i:c:p:221-238
    DOI: 10.1016/j.jeem.2018.10.001
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    More about this item

    Keywords

    Climate change; Economic impacts; Human capital; Fetal origins; O13; O15; J24; Q54; Q56;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • 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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