Does temperature affect labor productivity: Crosscountry evidence

YILDIRIM K., Koyuncu C., Koyuncu J.

Applied Econometrics and International Development, vol.9, no.1, pp.29-38, 2009 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 9 Issue: 1
  • Publication Date: 2009
  • Journal Name: Applied Econometrics and International Development
  • Journal Indexes: Scopus
  • Page Numbers: pp.29-38
  • Keywords: Climate, Cross-section study, Labor productivity, Standardized variables, Temperature
  • Anadolu University Affiliated: Yes


This analysis, by using a cross-section data of 111 countries for different samples of 1997-2006 period and Ordinary Least Square (OLS) estimation technique, tests the hypothesis that higher temperature conversely affects labor productivity in a country. The results indicate that there is statistically significant negative relationship between temperature and labor productivity level of a country and this finding remains valid for all samples. Also we identified that temperature level of a country is the second most contributing factor to the explanation of labor productivity level in that particular country. The most contributing factor to labor productivity level is being a high income country.