 Effects of air pollution on labor supply: Evidence from JapanDaichi Yamada and Daiju Narita Journal of Environmental Economics and Management, 2025, vol. 132, issue C Abstract: We empirically examine the effects of fine particulate matter (PM2.5) pollution on labor supply based on data from Japan, a country in which the PM2.5 level is generally low to moderate. PM2.5 can adversely affect health and cause affected workers to reduce labor supply, whereas workers and firms can take reactive measures to mitigate labor supply losses. We aim to investigate the causal effects of PM2.5 pollution, managing potential endogeneity of PM2.5 pollution by using nationally representative panel data and utilizing two exogenous phenomena: thermal inversion events and transboundary pollution transport from the Asian continent. The results robustly show that increases in PM2.5 levels decrease monthly labor hours. Even moderate levels of PM2.5 pollution affect labor supply on a national scale. Our findings are related to current international discussions on low-to-moderate levels of air pollution. Keywords: Fine particulate matter (PM2.5); Air pollution; Labor supply; Social costs; Japan; East Asia (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:132:y:2025:i:c:s0095069625000622 DOI: 10.1016/j.jeem.2025.103178 Access Statistics for this article Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates More articles in Journal of Environmental Economics and Management from Elsevier |
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