Employment effects of temperature shocks in Italy and the role of occupational heat stress

Author(s)
Date Issued
March 19, 2024
Subjects
Analisi econometrica
Cambiamento climatico
Occupazione
Abstract
We assess the employment impact of temperature shocks in Italy by taking into consideration the role of occupational heat stress. Combining labor-market survey data with ground-station gridded weather information, we run non-linear panel fixed-effects regression models over 2011-2019 and estimate around half percentage-point contraction in provinces’ employment rates for a two Celsius degrees shock in average quarterly temperatures. This effect doubles in magnitude for provinces in coastal and southern climatic zones. By exploiting narrowly-defined 4-digit occupation survey information, we show that our results are significantly driven by individuals previously-employed in occupations relatively more exposed to extreme temperatures. This subset of non-employed significantly accrues to the private service sector and is equally split between unemployment and inactivity.
Citation
Biagetti M., Intraligi V. (2024), Employment effects of temperature shocks in Italy and the role of occupational heat stress, Roma, Inapp, WP, 119 <https://oa.inapp.org/xmlui/handle/20.500.12916/4227>
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Type
Working Paper
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