Temperature and Human Capital in the Short- and Long-Run

Joshua Graff Zivin, Solomon M. Hsiang and Matthew Neidell

No 21157, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We provide the first estimates of the potential impact of climate change on human capital, focusing on the impacts from both short-run weather and long-run climate. Exploiting the longitudinal structure of the NLSY79 and random fluctuations in weather across interviews, we identify the effect of temperature in models with child-specific fixed effects. We find that short-run changes in temperature lead to statistically significant decreases in cognitive performance on math (but not reading) beyond 26C (78.8F). In contrast, our long-run analysis, which relies upon long-difference and rich cross-sectional models, reveals no statistically significant relationship between climate and human capital. This finding is consistent with the notion that adaptation, particularly compensatory behavior, plays a significant role in limiting the long run impacts from short run weather shocks.

JEL-codes: H41 I0 Q5 Q54 (search for similar items in EconPapers)
Date: 2015-05
New Economics Papers: this item is included in nep-env, nep-gro and nep-hrm
Note: CH EEE EH LS PE
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Citations: View citations in EconPapers (15)

Published as Joshua Graff Zivin & Solomon M. Hsiang & Matthew Neidell, 2018. "Temperature and Human Capital in the Short and Long Run," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(1), pages 77-105.

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Journal Article: Temperature and Human Capital in the Short and Long Run (2018)
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