PT  - JOURNAL ARTICLE
AU  - Garcia, Kairon Shayne D.
AU  - Galinato, Gregmar I.
AU  - Islam, Asif M.
TI  - The Effect of Extreme Temperature Shocks on the Type of Firm Labor Hired
AID  - 10.3368/le.103.1.060225-0043R
DP  - 2026 Jul 26
TA  - Land Economics
PG  - 060225-0043R
4099  - http://le.uwpress.org/content/early/2026/07/16/le.103.1.060225-0043R.short
4100  - http://le.uwpress.org/content/early/2026/07/16/le.103.1.060225-0043R.full
AB  - The article estimates the effect of extreme temperature on labor in the manufacturing and services sectors in the Philippines. We use firm-level survey and temperature data and exploit the exogenous annual variation of maximum temperature. We find a rise in the projected annual increase of extreme temperature from climate change by 0.08℃, reduces employment by 14 workers for a firm with 136 employees in export-focused industries in dry regions. Male, temporary, skilled workers in large, technology-dependent, non-food firms, are most affected by extreme temperature. The mechanism is the reduction in capital investment leading to a complementary reduction in labor hired.