Abstract
Using administrative health insurance datasets for one third of the German working-age population, we link the quasi-experimental occurrence of heat waves by zip code over a period of more than a decade to an increase in sickness absence and assess the impact on labor market inequality. On an average hot day, the number of sick leave cases increases by about 3.3%. With enduring heat exposure over five consecutive days, the effect grows by more than half. Heat-induced sick leaves distribute highly unevenly. Those who are already disadvantaged in terms of their income and working conditions are more vulnerable to heat stress. Workers who are more flexible in scheduling and adjusting their working hours are less at risk. In addition, we provide suggestive evidence that heat waves induce long-term increases in the demand for different healthcare services.
Speaker
Nico Pestel is an Associate Professor at the Research Centre for Education and the Labour Market (ROA) at Maastricht University. He is affiliated to the Institute of Labor Economics as an IZA Research Fellow and a CESifo Research Network Affiliate. Nico’s research interests are in applied labor, environmental and public economics as well as in political economy. He is particularly interested in the role of environmental conditions for labor market outcomes, human capital formation as well as decision-making.
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