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%.
He, Jiaxiu, Haoming Liu, and Alberto Salvo.
"Severe Air Pollution and Labor Productivity: Evidence from Industrial Towns in China."
American Economic Journal: Applied Economics,
Human Capital; Skills; Occupational Choice; Labor Productivity
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population
Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics
Socialist Systems and Transitional Economies: Natural Resources; Energy; Environment
Valuation of Environmental Effects
Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling