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Temperature and the Allocation of Time: Implications for Climate Change

  • Joshua Graff Zivin
  • Matthew J. Neidell

In this paper we estimate the impacts of climate change on the allocation of time using econometric models that exploit plausibly exogenous variation in daily temperature over time within counties. We find large reductions in U.S. labor supply in industries with high exposure to climate and similarly large decreases in time allocated to outdoor leisure. We also find suggestive evidence of short-run adaptation through temporal substitutions and acclimatization. Given the industrial composition of the US, the net impacts on total employment are likely to be small, but significant changes in leisure time as well as large scale redistributions of income may be consequential. In developing countries, where the industrial base is more typically concentrated in climate-exposed industries and baseline temperatures are already warmer, employment impacts may be considerably larger.

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File URL: http://www.nber.org/papers/w15717.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15717.

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Date of creation: Feb 2010
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Publication status: published as 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.
Handle: RePEc:nbr:nberwo:15717
Note: EEE HE LS
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  1. Jeff E. Biddle & Daniel S. Hamermesh, 1989. "Sleep and the Allocation of Time," NBER Working Papers 2988, National Bureau of Economic Research, Inc.
  2. Mendelsohn, Robert & Nordhaus, William D & Shaw, Daigee, 1994. "The Impact of Global Warming on Agriculture: A Ricardian Analysis," American Economic Review, American Economic Association, vol. 84(4), pages 753-71, September.
  3. Matthew Rabin., 1997. "Psychology and Economics," Economics Working Papers 97-251, University of California at Berkeley.
  4. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2008. "Climate Change and Economic Growth: Evidence from the Last Half Century," NBER Working Papers 14132, National Bureau of Economic Research, Inc.
  5. Katharine G. Abraham & Aaron Maitland & Suzanne M. Bianchi, 2006. "Non-response in the American Time Use Survey: Who Is Missing from the Data and How Much Does It Matter?," NBER Technical Working Papers 0328, National Bureau of Economic Research, Inc.
  6. Cragg, Michael & Kahn, Matthew, 1997. "New Estimates of Climate Demand: Evidence from Location Choice," Journal of Urban Economics, Elsevier, vol. 42(2), pages 261-284, September.
  7. Wolfram Schlenker & Michael J. Roberts, 2008. "Estimating the Impact of Climate Change on Crop Yields: The Importance of Nonlinear Temperature Effects," NBER Working Papers 13799, National Bureau of Economic Research, Inc.
  8. Eisenberg Daniel & Okeke Edward, 2009. "Too Cold for a Jog? Weather, Exercise, and Socioeconomic Status," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-32, June.
  9. Marie Connolly, 2008. "Here Comes the Rain Again: Weather and the Intertemporal Substitution of Leisure," Journal of Labor Economics, University of Chicago Press, vol. 26, pages 73-100.
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