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Impacts of Extreme Heat on Labor Force Dynamics

Author

Listed:
  • Andrew Ireland

    (Monash University)

  • David Johnston

    (Monash University)

  • Rachel Knott

    (Monash University)

Abstract

We use daily longitudinal data and a within-worker identification approach to examine the impacts of heat on labor force dynamics in Australia. High temperatures during 2001–2019 significantly reduced work attendance and hours worked, which were not compensated for in subsequent days and weeks. The largest reductions occurred in cooler regions and recent years, and were not solely concentrated amongst outdoor-based workers. Financial and Insurance Services was the most strongly affected industry, with temperatures above 38°C (100°F) increasing absenteeism by 15 percent. Adverse heat effects during the work commute and during outdoor work hours are shown to be key mechanisms.

Suggested Citation

  • Andrew Ireland & David Johnston & Rachel Knott, 2024. "Impacts of Extreme Heat on Labor Force Dynamics," Papers 2024-01, Centre for Health Economics, Monash University.
    • Handle: RePEc:mhe:chemon:2024-01
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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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