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The Impact of Temperature on Productivity and Labor Supply: Evidence from Indian Manufacturing

Author

Listed:
  • E. Somanathan
  • Rohini Somanathan
  • Anant Sudarsan
  • Meenu Tewari

Abstract

This paper shows that high temperatures may reduce manufactur- ing output by lowering worker productivity via heat stress. Using an annual panel of manufacturing plants in India, and daily primary micro- data from case-study rms, we nd that (i) output in labor-intensive settings decreases at high temperatures by about 3 percent per degree Celsius (ii) workplace climate control may enable adaptation and (iii) sustained heat may reduce worker attendance.

Suggested Citation

  • E. Somanathan & Rohini Somanathan & Anant Sudarsan & Meenu Tewari, 2014. "The Impact of Temperature on Productivity and Labor Supply: Evidence from Indian Manufacturing," Working Papers id:6308, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:6308
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    References listed on IDEAS

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    1. Sanghamitra Das & Kala Krishna & Sergey Lychagin & Rohini Somanathan, 2013. "Back on the Rails: Competition and Productivity in State-Owned Industry," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 136-162, January.
    2. 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.
    3. Eli Berman & Rohini Somanathan & Hong W. Tan, 2010. "Is Skill-Biased Technological Change Here Yet? Evidence from Indian Manufacturing in the 1990s," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 299-321, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Indian manufacturing; temperatures; labour intensive; climate; workplace; worker attendance;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • 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

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