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  3. American Economic Journal: Economic Policy
  4. August 2016
  5. Particulate Pollution and the Productivity of Pear Packers

Particulate Pollution and the Productivity of Pear Packers

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Abstract

We study the effect of outdoor air pollution on the productivity of indoor workers at a pear-packing factory. Increases in fine particulate matter (PM2.5), a pollutant that readily penetrates indoors, leads to significant decreases in productivity, with effects arising at levels below air quality standards. In contrast, pollutants that do not travel indoors, such as ozone, have little, if any, effect on productivity. This effect of outdoor pollution on indoor worker productivity suggests an overlooked consequence of pollution. Back-of-the envelope calculations suggest the labor savings from nationwide reductions in PM2.5 generated a sizable fraction of total welfare benefits.

Citation

Chang, Tom, Joshua Graff Zivin, Tal Gross, and Matthew Neidell. 2016. "Particulate Pollution and the Productivity of Pear Packers." American Economic Journal: Economic Policy, 8 (3): 141-69. DOI: 10.1257/pol.20150085

Additional Materials

JEL Classification

  • D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
  • J24 Human Capital; Skills; Occupational Choice; Labor Productivity
  • L66 Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
  • Q13 Agricultural Markets and Marketing; Cooperatives; Agribusiness
  • Q51 Valuation of Environmental Effects
  • Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

What do we learn?

  • Posted by Robert Kaestner
  • Posted on 8/18/2016 4:44:37 PM
What do we learn about the association between air pollution and labor productivity from 158, temporary pear pickers at one plant in Northern California who worked on average 46 days on the 2% (or 5 not counting days of extreme pollution due to fire) of the 214 days (5) when air pollution is high [PM_20-25]? My answer is little.
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