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Temperature, workplace safety, and labor market inequality

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Download File071921-WP-Temperature, workplace safety, and labor market inequality-Park Pankratz and Behrer Authors: R. Jisung Park, University of California, Los AngelesNora Pankratz, University of California, Los AngelesA. Patrick Behrer, Stanford University Abstract: Using data covering the universe of injury claims from the nation’s largest worker’s compensation system (2001-2018), we explore the relationship between temperature and workplace safety and its implications for labor market inequality. Hotter temperature increases workplace injuries significantly, causing approximately 20,000 injuries per year and an estimated social cost of billion. The effects persist in both outdoor and indoor settings (e.g. manufacturing,

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R. Jisung Park, Nora Pankratz, A. Patrick Behrer considers the following as important:

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Download File
071921-WP-Temperature, workplace safety, and labor market inequality-Park Pankratz and Behrer
Authors:

R. Jisung Park, University of California, Los Angeles
Nora Pankratz, University of California, Los Angeles
A. Patrick Behrer, Stanford University

Abstract:

Using data covering the universe of injury claims from the nation’s largest worker’s compensation system (2001-2018), we explore the relationship between temperature and workplace safety and its implications for labor market inequality. Hotter temperature increases workplace injuries significantly, causing approximately 20,000 injuries per year and an estimated social cost of $1 billion. The effects persist in both outdoor and indoor settings (e.g. manufacturing, warehousing), and for injury types ostensibly unrelated to temperature (e.g. falling from heights), consistent with cognitive or cost-related channels. The risks are substantially larger for men versus women; for younger versus older workers; and for workers at the lower end of the income distribution, suggesting that accounting for workplace heat exposure may exacerbate total compensation inequality. We document a decline in the heat-sensitivity of injuries over the study period, suggesting significant scope for adaptation using existing technologies. (JEL codes: J20, J32, I18, Q50)

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