Rising temperatures, shrinking gaps: The unexpected labor market impact of climate shocks

Abstract

This study examines the impact of rising temperatures on the gender pay gap in China using the China General Social Survey (CGSS) combined with meteorological data. We find that men suffer greater income losses than women during periods of extreme heat, thus high temperatures are found to narrow the gender pay gap. Furthermore, we show that this reduction in gender disparity is driven by disproportionate welfare losses among male workers rather than increases in female earnings. Specifically, high temperatures significantly reduce working hours in male-dominated sectors in China. We also find that temperatures exceeding 36 °C have a significant negative effect on incomes for both men and women. The heterogeneity analysis reveals that the narrowing of the gender pay gap is more significant among individuals living in large households, with higher socioeconomic status, and residing in regions with low reliance on clean energy. Our findings offer insights into the gender-based economic consequences of climate change.