Professor Marcelo Olivares finds that extreme weather affects productivity
Profiled in a feature article in Columbia Ideas at Work, Professor Marcelo Olivares explained how he (and co-authors Gerard P. Cachon and Santiago Gallino of Wharton) analyzed weather station data and weekly production data from US auto plants. Their goal: to determine whether extreme weather affects productivity, and if so, by how much?
Olivares and his co-authors found that productivity declined by about 1.5 percent on average, per plant, due to each extreme weather event in the period studied. They describe their findings in the working paper Severe Weather and Automobile Assembly Productivity.