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Does global warming affect unemployment? International evidence

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  • Liu, Tie-Ying
  • Lin, Ye

Abstract

A global perspective is taken to explore the effect of global warming on the unemployment rate in 95 countries from 1992–2020. The robust results show that global warming raises the unemployment rate through the inflation rate, agricultural production and urbanization. The results also show that the unemployment rate increases with global warming in countries at latitudes between 20 and 40 degrees, while a negative effect exists at latitudes greater than 40 degrees. Additionally, global warming has a significant effect on male unemployment but not on female unemployment. Furthermore, global warming has a significant positive effect on unemployment in middle-income countries compared to its effect in low- and high-income countries. Our research has value as a reference for the economic impacts of global climate change.

Suggested Citation

  • Liu, Tie-Ying & Lin, Ye, 2023. "Does global warming affect unemployment? International evidence," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 991-1005.
    • Handle: RePEc:eee:ecanpo:v:80:y:2023:i:c:p:991-1005
    DOI: 10.1016/j.eap.2023.09.028
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    More about this item

    Keywords

    Global warming; Unemployment; Two-stage least squares;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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