Avoidance Behaviours and Constraints: Temperature and Labour Supply in the United Kingdom

ABSTRACT

Temperature can play an important role in time allocation decisions like labour supply as workers seek to avoid harmful exposure or enjoy higher utility from leisure. Using time use survey data, we estimate the effect of temperature on labour supply in the UK. We find large reductions in working time on high‐temperature days, especially among weather‐exposed workers. While the time use patterns we document are consistent with avoidance behaviours, we cannot rule out leisure as an alternative mechanism. We also show that low‐income workers are constrained in their ability to adjust their labour supply in response to high temperatures.