"We assess the employment impact of temperature shocks in Italy by taking into consideration the role of occupational heat stress. Combining labor-market survey data with ground-station gridded weather information, we run non-linear panel fixed-effects regression models over 2011-2019 and estimate around half percentage-point contraction in provinces' employment rates for a two Celsius degrees shock in average quarterly temperatures. This effect doubles in magnitude for provinces in coastal and southern climatic zones. By exploiting narrowly-defined 4-digit occupation survey information, we show that our results are significantly driven by individuals previously employed in occupations relatively more exposed to extreme temperatures. This subset of non-employed significantly accrues to the private service sector and is equally split between unemployment and inactivity. Our estimates are robust to specifications controlling for key endogenous variables."

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