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14. Januar 2020

Does weather sharpen income inequality in Russia?

Ein Vortrag von Olga Popova (IOS Regensburg) im Rahmen der Seminarreihe des AB Ökonomie am IOS.
Datum: 14. Januar 2020
Zeit: 13.30 Uhr
Ort: Leibniz-Institut für Ost-und Südosteuropaforschung (IOS), Landshuter Str. 4 (Raum 109)

This is the first paper that examines how the intensity of extreme weather events affects income inequality. Using subnational panel data from Russia, we account for both single and consecutive extremely hot and cold days. The results suggest that consecutive extremely hot days increase income inequality, while single hot days have no impact. The impact of consecutive hot days is uneven between rich and poor regions. A detailed exploration of labor market channels behind the effects suggests that extremely hot temperature increases inequality through reducing the employment in private sector industries, increasing the unemployment, and increasing the lower-paid public sector employment. Another source of income inequality is price changes driven by consecutive hot days. Extremely cold days, both single and consecutive, have no impact on income inequality and the labor market. This exacerbates the negative impact of extreme weather events on the economy, since extremely hot days become more frequent, while the number of extremely cold days decreases.