Abstract
Wage rates are related to climate and other explanatory variables under the hypothesis that higher money wages compensate for lower quality of life. Statistical results, obtained for 25 occupations within three samples, generally supported the hypothesis. Summer temperature, precipitation and wind velocity, among the first set of explanatories, and urban size, region and race, among the second set, had considerable explanatory power. A primary application of results was in estimating changes in real income given specified climate changes. Other applications included evidence on the urban heat island effect, and on an optimal summer temperature, which falls as precipitation increases.
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