Temperature and the Allocation of Time: Implications for Climate Change

41 Pages Posted: 8 Feb 2010  

Joshua Graff Zivin

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS); National Bureau of Economic Research (NBER)

Matthew Neidell

Columbia University; University of Chicago - Department of Economics and CISES; PERC - Property and Environment Research Center

Date Written: February 2010

Abstract

In this paper we estimate the impacts of climate change on the allocation of time using econometric models that exploit plausibly exogenous variation in daily temperature over time within counties. We find large reductions in U.S. labor supply in industries with high exposure to climate and similarly large decreases in time allocated to outdoor leisure. We also find suggestive evidence of short-run adaptation through temporal substitutions and acclimatization. Given the industrial composition of the US, the net impacts on total employment are likely to be small, but significant changes in leisure time as well as large scale redistributions of income may be consequential. In developing countries, where the industrial base is more typically concentrated in climate-exposed industries and baseline temperatures are already warmer, employment impacts may be considerably larger.

Suggested Citation

Graff Zivin, Joshua and Neidell, Matthew, Temperature and the Allocation of Time: Implications for Climate Change (February 2010). NBER Working Paper No. w15717. Available at SSRN: https://ssrn.com/abstract=1548775

Joshua Graff Zivin (Contact Author)

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS) ( email )

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La Jolla, CA 92093-0519
United States

National Bureau of Economic Research (NBER)

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Matthew Neidell

Columbia University ( email )

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University of Chicago - Department of Economics and CISES ( email )

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Chicago, IL 60637
United States

PERC - Property and Environment Research Center

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Bozeman, MT 59718
United States

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