Labour supply and temperature in Europe

Heat negatively affects human health and can lead to poorer work performance (reduced productivity) or lower number hours committed to work (labour supply), especially in highly exposed sectors such as agriculture, forestry, mining and quarrying, or construction. Productivity suffers from workers needing to slow down pace of work and to take additional breaks to rehydrate and cool down. When it is too hot to work, labour supply hours decrease, particularly for jobs that require physical activity.

Caveats

The main caveat is that the labour supply data is available only at the annual level, hence within year heterogeneity cannot be accounted for.