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Is your income tied to your local weather?

Warmer weather hurts your income, study finds

Daksha Rangan
Digital Reporter

Wednesday, December 17, 2014, 8:04 AM - A new study by the National Bureau of Economic Research says the heat hits hard.

Primarily, it hits where it hurts - your pocket.

The study shows a link between the temperature and the local economy, analyzing data over a 40-year period. It concludes that daily temperatures play a "large role" in the economics of the community, and that warmer weather in particular indicates a lower income.

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"For every degree increase in temperature above 59 degrees, productivity of workers and crops decreases by almost two per cent," CNN reports. This is because money is spent adapting to the climate.

For example, CNN notes, a place that is 25 C in comparison to a location that averages 12 C finds that workers in the colder climate earn five dollars more.

The study notes a "sweet spot," indicating that a daily average between 12 and 15 C is where productivity is maximized.

With files from CNN

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