Climate Change, Labour Markets, and Wage Inequality

Climate change has far-reaching economic consequences, but these impacts are unlikely to be felt equally across society. Understanding how climate-related shocks affect firms as compared to workers and their wages is therefore important for assessing the wider consequences of a changing climate.

Using matched employer-employee data from France, this webinar will explore how differences in firms’ responses to weather shocks translate into effects on workers’ wages. Combining climate econometrics with a structural labour-market model, the study examines differences in firms’ exposure to climate-related damages and what these mean for productivity, labour-market dynamics and wage inequality.