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The effect of pollution on labor supply: Evidence from a natural experiment in Mexico City

Rema Hanna and Paulina Oliva ()

Journal of Public Economics, 2015, vol. 122, issue C, 68-79

Abstract: Moderate effects of pollution on health may exert important influences on work. We exploit exogenous variation in pollution due to the closure of a large refinery in Mexico City to understand how pollution impacts labor supply. The closure led to a 19.7% decline in pollution, as measured by SO2, in the surrounding neighborhoods. The closure led to a 1.3h (or 3.5%) increase in work hours per week. The effects do not appear to be driven by differential labor demand shocks nor selective migration.

Keywords: Labor supply; Air pollution (search for similar items in EconPapers)
Date: 2015
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Related works:
Working Paper: The Effect of Pollution on Labor Supply: Evidence from a Natural Experiment in Mexico City (2011) Downloads
Working Paper: The Effect of Pollution on Labor Supply: Evidence from a Natural Experiment in Mexico City (2011) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:122:y:2015:i:c:p:68-79

DOI: 10.1016/j.jpubeco.2014.10.004

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