Abstract
This paper examines the relationship between high temperatures and the often overlooked conflict type of labor unrest, with evidence from China during the extended summer. Each additional hot day in a month, identified by daily average temperatures exceeding the average for that calendar month throughout the study period, leads to a 3% increase in labor unrest incidence, a 13.5% higher probability, and a 5% increase in its size the following month. We analyze effect heterogeneity by action type, firm ownership, industry, and region. Furthermore, we provide supporting evidence for pathways connecting high temperatures to labor unrest, involving firms’ lost profits and workers’ psychological and physiological stress.
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