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The Productivity Consequences of Pollution-Induced Migration in China

By Gaurav Khanna, Wenquan Liang, Ahmed Mushfiq Mobarak, and Ran Song

American Economic Journal: Applied Economics, April 2025

We quantify how pollution affects aggregate productivity and welfare in spatial equilibrium. We show that skilled workers in China emigrate away from polluted cities. These patterns are evident under various empirical specifications, such as when instrume...