Severe Air Pollution and Labor Productivity: Evidence from Industrial Towns in China
- (pp. 173-201)
Abstract
We examine day-to-day fluctuations in worker-level output at two manufacturing sites in China. Ambient fine-particle (PM2.5) pollution is severe but significantly variable, largely due to exogenous atmospheric ventilation. We obtain an insignificant immediate output response from concurrent (same-shift) variation in particle pollution. We then allow worker outcomes to respond to day-to-day variation in pollution with up to 30 days of delay. We uncover statistically significant adverse output effects from more prolonged exposure, but effects are not large. A substantial +10 μg/m3 PM2.5 variation sustained over 25 days reduces daily output by 1%.Citation
He, Jiaxiu, Haoming Liu, and Alberto Salvo. 2019. "Severe Air Pollution and Labor Productivity: Evidence from Industrial Towns in China." American Economic Journal: Applied Economics, 11 (1): 173-201. DOI: 10.1257/app.20170286Additional Materials
JEL Classification
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- P23 Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population
- P25 Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics
- P28 Socialist Systems and Transitional Economies: Natural Resources; Energy; Environment
- Q51 Valuation of Environmental Effects
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
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