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Medium- and Long-run Consequences of Pollution on Labor Supply: Evidence from Indonesia's Forest Fires of 1997

Younoh Kim (), James Manley () and Vlad Radoias ()
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Younoh Kim: Department of Economics, Sam Houston State University
James Manley: Department of Economics, Towson University

No 2017-02, Working Papers from Towson University, Department of Economics

Abstract: We use a natural experiment in Indonesia to study the medium- and long-run effects of air pollution on labor supply. We find that exposure to air pollution reduces hours worked and while the medium-run effects are larger in magnitude, some effects do persistent in the long run. More interestingly, we are able to provide some insight regarding the underlying channels that contribute to the reduced labor supply. Own health seems to be the only responsible channel in the long-run, while in the medium-run an additional channel based on dependent care-giving is also important

Keywords: Air Pollution; Working Hours; Indonesia. (search for similar items in EconPapers)
JEL-codes: J22 Q53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-env and nep-sea
Date: 2017-03, Revised 2017-03
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