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The Impact of Weather on Local Employment: Using Big Data on Small Places

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  • Daniel J. Wilson

Abstract

This paper exploits vast granular data ? over 10 million county-industry-month observations ? to estimate dynamic panel data models of weather?s short-run employment effects. I estimated the contemporaneous and cumulative effects of temperature, precipitation, snowfall, the frequency of very hot days, the frequency of very cold days, and natural disasters on private nonfarm employment growth. The short-run effects of weather vary considerably across sectors and regions. Favorable weather in one county has positive spillovers to nearby counties but negative spillovers to distant counties. Local climate mediates weather effects: economies are less sensitive to types of weather they are accustomed to.

Suggested Citation

  • Daniel J. Wilson, 2016. "The Impact of Weather on Local Employment: Using Big Data on Small Places," Working Paper Series 2016-21, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfwp:2016-21
    DOI: 10.24148/wp2016-21
    Note: This version: April 6, 2017. First published version: September 30, 2016.
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    More about this item

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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