The impact of climate change on work: Lessons for developing countries

Feriga, Moustafa, Gracia, Nancy Lozano and Serneels, Pieter (2024) The impact of climate change on work: Lessons for developing countries. World Bank Research Observer. ISSN 0257-3032

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Abstract

We identify five areas where climate change may impact work and draw lessons for developing countries by reviewing the evidence. Firstly, demand for labor is unevenly affected, with agriculture, heat-exposed manufacturing, and the brown energy sector experiencing downturns, while other sectors may see a rise, resulting in an uncertain overall impact. Secondly, climate change impacts labor supply through absenteeism, shirking, and altering work-time patterns, depending on the activity and sector. Thirdly, productivity may decline, especially in heat-exposed industries, primarily due to health reasons. Fourthly, heightened earnings variability likely increases vulnerability among the self-employed. Fifthly, climate change can influence labor allocation and catalyze sectoral reallocation. Higher temperatures are also linked to increased migration. But caution is needed in interpreting these findings, as studies across these topics predominantly use fixed effect estimation and concentrate on short-term impacts, neglecting adaptation. Emerging research on adaptation indicates that workplace cooling is unappealing for firms with narrow profit margins, while coping strategies of farms and households have unclear optimality due to adoption barriers. Government responses remain understudied, with six potential areas identified: green jobs, green skills, labor-oriented adaptation, flexible work regulation, labor market integration, and social protection. We conclude by outlining future research directions.

Item Type: Article
Uncontrolled Keywords: sdg 1 - no poverty,sdg 13 - climate action ,/dk/atira/pure/sustainabledevelopmentgoals/no_poverty
Faculty \ School: Faculty of Social Sciences > School of Global Development (formerly School of International Development)
UEA Research Groups: Faculty of Social Sciences > Research Centres > Centre for Behavioural and Experimental Social Sciences
University of East Anglia Schools > Faculty of Science > Tyndall Centre for Climate Change Research
Faculty of Science > Research Centres > Tyndall Centre for Climate Change Research
Faculty of Social Sciences > Research Groups > Impact Evaluation
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Depositing User: LivePure Connector
Date Deposited: 07 Dec 2024 01:40
Last Modified: 09 Dec 2024 01:39
URI: https://ueaeprints.uea.ac.uk/id/eprint/97934
DOI: 10.1093/wbro/lkae002

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