The Impact of Temperature on Productivity and Labor Supply: Evidence from Indian Manufacturing
Published By: CDE on eSS | Published Date: June, 01 , 2015Cross-country studies have found that hotter years are associated with lower output in poor countries. Using high-frequency micro-data from manufacturing firms in India, we show that worker heat stress can substantially explain this correlation. Ambient temperatures have non-linear e ffects on worker productivity, with declines on hot days of 4 to 9 percent per degree rise in temperature. Sustained heat
also increases absenteeism. Similar temperature induced productivity declines are
replicated in annual plant output from a national panel.
Author(s): Anant Sudarsan, E Somanathan, Rohini Somanathan | Posted on: Jul 07, 2015 | Views() | Download (574)