IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/126135.html
   My bibliography  Save this paper

Heat stress and the labour force

Author

Listed:
  • Dasgupta, Shouro
  • Robinson, Elizabeth J. Z.
  • Shayegh, Soheil
  • Bosello, Francesco
  • Park, R. Jisung
  • Gosling, Simon N.

Abstract

Heat stress affects the health of workers through physiological and behavioural responses, in turn, affecting the labour force through impacts on labour supply, labour productivity and labour capacity. In this Review, we explore the extent to which heat stress affects the labour force and discuss the corresponding occupational health and economic impacts. The relationship between labour force outcomes and temperature is largely nonlinear, declining sharply beyond peak thresholds. Observed and projected labour losses are heterogeneous across regions, sectors and warming levels. High-exposure sectors such as agriculture and construction are projected to experience the greatest losses under future warming, with ~33%, ~25% and ~18% declines in effective labour across Africa, Asia and Oceania, respectively, under a 3 °C warming scenario. Labour losses are also expected in low-exposure sectors such as manufacturing and utilities, but Northern Europe tends to benefit in the short run. These collective heterogeneous labour impacts lead to considerable reductions in global gross domestic product (GDP) and welfare, with projected GDP losses of 5.9% in South Asia and 3.6% in Africa. Improved local-scale exposure–response functions and incorporating adaptation into economic models are required to advance understanding of heat stress impacts on labour.

Suggested Citation

  • Dasgupta, Shouro & Robinson, Elizabeth J. Z. & Shayegh, Soheil & Bosello, Francesco & Park, R. Jisung & Gosling, Simon N., 2024. "Heat stress and the labour force," LSE Research Online Documents on Economics 126135, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:126135
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/126135/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jeremiah Chinnadurai & Vidhya Venugopal & Kumaravel P & Paramesh R, 2016. "Influence of occupational heat stress on labour productivity – a case study from Chennai, India," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 65(2), pages 245-255, February.
    2. Leonidas G. Ioannou & Lydia Tsoutsoubi & Konstantinos Mantzios & Giorgos Gkikas & Jacob F. Piil & Petros C. Dinas & Sean R. Notley & Glen P. Kenny & Lars Nybo & Andreas D. Flouris, 2021. "The Impacts of Sun Exposure on Worker Physiology and Cognition: Multi-Country Evidence and Interventions," IJERPH, MDPI, vol. 18(14), pages 1-26, July.
    3. Marshall Burke & Solomon M. Hsiang & Edward Miguel, 2015. "Global non-linear effect of temperature on economic production," Nature, Nature, vol. 527(7577), pages 235-239, November.
    4. Zhang, Peng & Deschenes, Olivier & Meng, Kyle & Zhang, Junjie, 2018. "Temperature effects on productivity and factor reallocation: Evidence from a half million chinese manufacturing plants," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 1-17.
    5. 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.
    6. Geoffrey Heal & Jisung Park, 2013. "Feeling the Heat: Temperature, Physiology & the Wealth of Nations," NBER Working Papers 19725, National Bureau of Economic Research, Inc.
    7. Garg, Teevrat & Gibson, Matthew & Sun, Fanglin, 2020. "Extreme temperatures and time use in China," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 309-324.
    8. Emerick, Kyle, 2018. "Agricultural productivity and the sectoral reallocation of labor in rural India," Journal of Development Economics, Elsevier, vol. 135(C), pages 488-503.
    9. Oliveira, Jaqueline & Palialol, Bruno & Pereda, Paula, 2021. "Do temperature shocks affect non-agriculture wages in Brazil? Evidence from individual-level panel data," Environment and Development Economics, Cambridge University Press, vol. 26(5-6), pages 450-465, October.
    10. Katrina Jessoe & Dale T. Manning & J. Edward Taylor, 2018. "Climate Change and Labour Allocation in Rural Mexico: Evidence from Annual Fluctuations in Weather," Economic Journal, Royal Economic Society, vol. 128(608), pages 230-261.
    11. Chen, Xiaoguang & Yang, Lu, 2019. "Temperature and industrial output: Firm-level evidence from China," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 257-274.
    12. E. Somanathan & Rohini Somanathan & Anant Sudarshan & Meenu Tewari, 2021. "The Impact of Temperature on Productivity and Labor Supply: Evidence from Indian Manufacturing," Journal of Political Economy, University of Chicago Press, vol. 129(6), pages 1797-1827.
    13. Xiang Gao & C. Adam Schlosser & Eric R. Morgan, 2018. "Potential impacts of climate warming and increased summer heat stress on the electric grid: a case study for a large power transformer (LPT) in the Northeast United States," Climatic Change, Springer, vol. 147(1), pages 107-118, March.
    14. Bosello, Francesco & Roson, Roberto & Tol, Richard S.J., 2006. "Economy-wide estimates of the implications of climate change: Human health," Ecological Economics, Elsevier, vol. 58(3), pages 579-591, June.
    15. Jonathan Colmer, 2021. "Temperature, Labor Reallocation, and Industrial Production: Evidence from India," American Economic Journal: Applied Economics, American Economic Association, vol. 13(4), pages 101-124, October.
    16. Francesco Bosello & Andrea Bigano & Roberto Roson & Richard S.J. Tol, 2006. "Economy-Wide Estimates of the Implications of Climate Change: A Joint Analysis for Sea Level Rise and Tourism," Working Papers 2006.135, Fondazione Eni Enrico Mattei.
    17. Wen Yi & Albert P. C. Chan, 2017. "Effects of Heat Stress on Construction Labor Productivity in Hong Kong: A Case Study of Rebar Workers," IJERPH, MDPI, vol. 14(9), pages 1-14, September.
    18. Anton Orlov & Jana Sillmann & Asbjørn Aaheim & Kristin Aunan & Karianne Bruin, 2019. "Economic Losses of Heat-Induced Reductions in Outdoor Worker Productivity: a Case Study of Europe," Economics of Disasters and Climate Change, Springer, vol. 3(3), pages 191-211, October.
    19. Jun’ya Takakura & Shinichiro Fujimori & Naota Hanasaki & Tomoko Hasegawa & Yukiko Hirabayashi & Yasushi Honda & Toshichika Iizumi & Naoko Kumano & Chan Park & Zhihong Shen & Kiyoshi Takahashi & Makoto, 2019. "Dependence of economic impacts of climate change on anthropogenically directed pathways," Nature Climate Change, Nature, vol. 9(10), pages 737-741, October.
    20. Luke A. Parsons & Drew Shindell & Michelle Tigchelaar & Yuqiang Zhang & June T. Spector, 2021. "Increased labor losses and decreased adaptation potential in a warmer world," Nature Communications, Nature, vol. 12(1), pages 1-11, December.
    21. John P. Dunne & Ronald J. Stouffer & Jasmin G. John, 2013. "Reductions in labour capacity from heat stress under climate warming," Nature Climate Change, Nature, vol. 3(6), pages 563-566, June.
    22. Mengzhen Zhao & Jason Kai Wei Lee & Tord Kjellstrom & Wenjia Cai, 2021. "Assessment of the economic impact of heat-related labor productivity loss: a systematic review," Climatic Change, Springer, vol. 167(1), pages 1-16, July.
    23. Song, Yuqi, 2024. "The value of weather forecasts: Evidence from labor responses to accurate versus inaccurate temperature forecasts in China," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    24. Simon Gosling & Jamal Zaherpour & Dolores Ibarreta, 2018. "PESETA III: Climate change impacts on labour productivity," JRC Research Reports JRC113740, Joint Research Centre.
    25. Xiaomeng Cui & Shuaizhang Feng, 2021. "Labour reallocation as adaptation," Nature Climate Change, Nature, vol. 11(11), pages 901-902, November.
    26. Jun’ya Takakura & Shinichiro Fujimori & Naota Hanasaki & Tomoko Hasegawa & Yukiko Hirabayashi & Yasushi Honda & Toshichika Iizumi & Naoko Kumano & Chan Park & Zhihong Shen & Kiyoshi Takahashi & Makoto, 2019. "Publisher Correction: Dependence of economic impacts of climate change on anthropogenically directed pathways," Nature Climate Change, Nature, vol. 9(11), pages 894-894, November.
    27. Leonidas G. Ioannou & Konstantinos Mantzios & Lydia Tsoutsoubi & Eleni Nintou & Maria Vliora & Paraskevi Gkiata & Constantinos N. Dallas & Giorgos Gkikas & Gerasimos Agaliotis & Kostas Sfakianakis & A, 2021. "Occupational Heat Stress: Multi-Country Observations and Interventions," IJERPH, MDPI, vol. 18(12), pages 1-21, June.
    28. Burke, Marshall & Hsiang, Solomon M & Miguel, Edward, 2015. "Global non-linear effect of temperature on economic production," Department of Economics, Working Paper Series qt3g72r0zv, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    29. June T Spector & David K Bonauto & Lianne Sheppard & Tania Busch-Isaksen & Miriam Calkins & Darrin Adams & Max Lieblich & Richard A Fenske, 2016. "A Case-Crossover Study of Heat Exposure and Injury Risk in Outdoor Agricultural Workers," PLOS ONE, Public Library of Science, vol. 11(10), pages 1-16, October.
    30. Nina Knittel & Martin W. Jury & Birgit Bednar-Friedl & Gabriel Bachner & Andrea K. Steiner, 2020. "A global analysis of heat-related labour productivity losses under climate change—implications for Germany’s foreign trade," Climatic Change, Springer, vol. 160(2), pages 251-269, May.
    31. Marco Morabito & Alessandro Messeri & Alfonso Crisci & Junzhe Bao & Rui Ma & Simone Orlandini & Cunrui Huang & Tord Kjellstrom, 2020. "Heat-related productivity loss: benefits derived by working in the shade or work-time shifting," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 70(3), pages 507-525, April.
    32. Huang, Kaixing & Zhao, Hong & Huang, Jikun & Wang, Jinxia & Findlay, Christopher, 2020. "The impact of climate change on the labor allocation: Empirical evidence from China," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    33. Jeremiah Chinnadurai & Vidhya Venugopal & Kumaravel P & Paramesh R, 2016. "Influence of occupational heat stress on labour productivity – a case study from Chennai, India," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 65(2), pages 245-255, February.
    34. Jessie Ruth Schleypen & Malcolm N. Mistry & Fahad Saeed & Shouro Dasgupta, 2022. "Sharing the burden: quantifying climate change spillovers in the European Union under the Paris Agreement," Spatial Economic Analysis, Taylor & Francis Journals, vol. 17(1), pages 67-82, January.
    35. Katrina Jessoe & Dale T. Manning & J. Edward Taylor, 2018. "Climate Change and Labour Allocation in Rural Mexico: Evidence from Annual Fluctuations in Weather," Economic Journal, Royal Economic Society, vol. 128(608), pages 230-261, February.
    36. Shouro Dasgupta & Elizabeth J Z Robinson, 2023. "The labour force in a changing climate: Research and policy needs," PLOS Climate, Public Library of Science, vol. 2(1), pages 1-4, January.
    37. Marcus Dillender, 2021. "Climate Change and Occupational Health: Are There Limits to Our Ability to Adapt?," Journal of Human Resources, University of Wisconsin Press, vol. 56(1), pages 184-224.
    38. Heyes, Anthony & Saberian, Soodeh, 2022. "Hot Days, the ability to Work and climate resilience: Evidence from a representative sample of 42,152 Indian households," Journal of Development Economics, Elsevier, vol. 155(C).
    39. Cai, Xiqian & Lu, Yi & Wang, Jin, 2018. "The impact of temperature on manufacturing worker productivity: Evidence from personnel data," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 889-905.
    40. Jaqueline Oliveira & Bruno Palialol & Paula Pereda, 2021. "Do temperature shocks affect non-agriculture wages in Brazil? Evidence from individual-level panel data," Working Papers, Department of Economics 2021_13, University of São Paulo (FEA-USP).
    41. Andrew P. Hunt & Matt Brearley & Andrew Hall & Rodney Pope, 2023. "Climate Change Effects on the Predicted Heat Strain and Labour Capacity of Outdoor Workers in Australia," IJERPH, MDPI, vol. 20(9), pages 1-12, April.
    42. Chengzheng Li & Zheng Pan, 2021. "How do extremely high temperatures affect labor market performance? Evidence from rural China," Empirical Economics, Springer, vol. 61(4), pages 2265-2291, October.
    43. Afridi, Farzana & Mahajan, Kanika & Sangwan, Nikita, 2022. "The gendered effects of droughts: Production shocks and labor response in agriculture," Labour Economics, Elsevier, vol. 78(C).
    44. Anton Orlov & Anne Sophie Daloz & Jana Sillmann & Wim Thiery & Clara Douzal & Quentin Lejeune & Carl Schleussner, 2021. "Global Economic Responses to Heat Stress Impacts on Worker Productivity in Crop Production," Economics of Disasters and Climate Change, Springer, vol. 5(3), pages 367-390, October.
    45. Kerstin K. Zander & Wouter J. W. Botzen & Elspeth Oppermann & Tord Kjellstrom & Stephen T. Garnett, 2015. "Heat stress causes substantial labour productivity loss in Australia," Nature Climate Change, Nature, vol. 5(7), pages 647-651, July.
    46. Hala Abou-Ali & Ronia Hawash & Rahma Ali & Yasmine Abdelfattah & Megahed Hassan, 2023. "Is it getting too hot to work? Investigating the impact of climate change on labour supply in the MENA region," Applied Economics, Taylor & Francis Journals, vol. 55(25), pages 2847-2862, May.
    47. David García-León & Ana Casanueva & Gabriele Standardi & Annkatrin Burgstall & Andreas D. Flouris & Lars Nybo, 2021. "Current and projected regional economic impacts of heatwaves in Europe," Nature Communications, Nature, vol. 12(1), pages 1-10, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Xinheng & You, Taohong & Yang, Xin & Shi, Luqing, 2025. "Triggering precaution: Heat stress and the Chinese household saving puzzle," Economics Letters, Elsevier, vol. 253(C).
    2. Robinson, Elizabeth & Howarth, Candice & Zhou, Zoe & Dasgupta, Shouro, 2025. "Improving the resilience of the UK labour force in a 1.5°C world," LSE Research Online Documents on Economics 128513, London School of Economics and Political Science, LSE Library.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Valenti, Giulia & Vona, Francesco, 2024. "Hot Wages: How Do Heat Waves Change the Earnings Distribution?," FEEM Working Papers 348848, Fondazione Eni Enrico Mattei (FEEM).
    2. Wei, Xiahai & Li, Jianan & Liu, Hongyou & Wan, Jiangtao, 2023. "Temperature and outdoor productivity: Evidence from professional soccer players," Journal of Asian Economics, Elsevier, vol. 87(C).
    3. Xie, Victoria Wenxin, 2024. "Labor market adjustment to extreme heat shocks: Evidence from Brazil," Journal of Economic Behavior & Organization, Elsevier, vol. 222(C), pages 266-283.
    4. Moustafa Feriga & Nancy Lozano Gracia & Pieter Serneels, 2025. "The Impact of Climate Change on Work: Lessons for Developing Countries," The World Bank Research Observer, World Bank, vol. 40(1), pages 104-146.
    5. Sadou Diallo & Henri Atangana Ondoa, 2025. "Climate shocks and labor market in sub-Saharan Africa: effects on gender disparities in urban and rural areas," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 27(1), pages 203-225, April.
    6. Jaqueline Oliveira & Bruno Palialol & Paula Pereda, 2021. "Do temperature shocks affect non-agriculture wages in Brazil? Evidence from individual-level panel data," Working Papers, Department of Economics 2021_13, University of São Paulo (FEA-USP).
    7. Gong, Jiaowei & Shi, Xiangyu & Wang, Chang & Zhang, Xin, 2025. "Extreme high temperatures and adaptation by social dynamics: Theory and evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 234(C).
    8. Belloc, Ignacio & Gimenez-Nadal, José Ignacio & Molina, José Alberto, 2025. "Extreme temperatures: Gender differences in well-being," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 117(C).
    9. Brookes Gray, Harriet & Taraz, Vis & Halliday, Simon D., 2023. "The impact of weather shocks on employment outcomes: evidence from South Africa," Environment and Development Economics, Cambridge University Press, vol. 28(3), pages 285-305, June.
    10. Lyu, Zhuoyang & Yu, Li & Liu, Chen & Ma, Tiemeng, 2024. "When temperatures matter: Extreme heat and labor share," Energy Economics, Elsevier, vol. 138(C).
    11. Elmallakh, Nelly Youssef Louis William & Faures, Diego & Gatti, Roberta V. & Islam, Asif Mohammed, 2025. "The Labor Market Effects of Droughts in MENA," Policy Research Working Paper Series 11191, The World Bank.
    12. Jonathan Colmer, 2021. "Temperature, Labor Reallocation, and Industrial Production: Evidence from India," American Economic Journal: Applied Economics, American Economic Association, vol. 13(4), pages 101-124, October.
    13. Oliver Schenker & Daniel Osberghaus, 2025. "International Trade and the Transmission of Temperature Shocks," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(4), pages 965-1007, April.
    14. Chen, Zhenzhu & Li, Li & Tang, Yao, 2024. "Weather, credit, and economic fluctuations: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 406-422.
    15. Aguilar-Gomez, Sandra & Gutierrez, Emilio & Heres, David & Jaume, David & Tobal, Martin, 2024. "Thermal stress and financial distress: Extreme temperatures and firms’ loan defaults in Mexico," Journal of Development Economics, Elsevier, vol. 168(C).
    16. Drescher, Katharina & Janzen, Benedikt, 2025. "When weather wounds workers: The impact of temperature on workplace accidents," Journal of Public Economics, Elsevier, vol. 241(C).
    17. Chengzheng Li & Zheng Pan, 2021. "How do extremely high temperatures affect labor market performance? Evidence from rural China," Empirical Economics, Springer, vol. 61(4), pages 2265-2291, October.
    18. Albanese, Andrea & Deschenes, Olivier & Gathmann, Christina & Nieto, Adrian, 2025. "Extreme Temperatures, Health and Retirement," Working Papers 2025:8, Lund University, Department of Economics, revised 28 Oct 2025.
    19. Zhang, Huiming & Zhang, Aixin & Wu, Kai & Cai, Yinyin & Qiu, Yueming (Lucy) & Wang, Shouyang & Wang, Weiwei & Zhao, Yongfan, 2025. "Unequal impacts of temperature deviations on poverty:International Evidence," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 970-990.
    20. Yun Qiu & Jinhua Zhao, 2022. "Adaptation and the distributional effects of heat: Evidence from professional archery competitions," Southern Economic Journal, John Wiley & Sons, vol. 88(3), pages 1149-1177, January.

    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:126135. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.