The Impact of Temperature on Productivity and Labor Supply: Evidence from Indian Manufacturing
利用印度企业微观数据,发现高温天气降低工人生产率并增加缺勤率,气候控制可缓解损失;全国工厂数据显示每摄氏度升温使年产出下降约2%,且劳动力产出弹性降低是主因。
Hotter years are associated with lower economic output in developing countries. We show that the effect of temperature on labor is an important part of the explanation. Using microdata from selected firms in India, we estimate reduced worker productivity and increased absenteeism on hot days. Climate control significantly mitigates productivity losses. In a national panel of Indian factories, annual plant output falls by about 2% per degree Celsius. This response appears to be driven by a reduction in the output elasticity of labor. Our estimates are large enough to explain previously observed output losses in cross-country panels.