THE EFFECTS OF CLIMATE CHANGE ON VULNERABLE WORKERS’ PERFORMANCE AND INCOME

This study models and analyzes how climatic variability impacts the productivity of vulnerable and non-vulnerable workers, empha sizing disparities driven by climate sensitivity. Vulnerable workers, heavily reliant on stable environmental conditions, face amplified pro ductivity losses due to deviations from optimal temperature, while non-vulnerable workers, shielded by technology, maintain stable out puts. A Cobb-Douglas production function with a CES framework quantifies these effects, revealing significant declines in wages and pro ductivity for vulnerable groups as climate variability increases. The research integrates theories of heat stress, psychosocial work environ ments, and climate justice to explain these impacts. Results highlight how firms adapt by substituting vulnerable labor with non-vulnerable workers, exacerbating employment and income inequalities. This dy namic aligns with climate justice concerns, as low-income, outdoor intensive roles suffer the most, underscoring the need for equitable adaptation policies.