climate change treaties, damage health, environmental regulation, illness, Industrial pollution, Labor Markets, labor supply, oil expropriation, Pollution, pollution taxation policies, refinery, United States, working hours, Indonesia, Mexico
The Effect of Pollution on Labor Supply

Moderate effects of pollution on health may exert an important influence on labor market decisions. The authors 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 an 8 percent decline in pollution in the surrounding neighborhoods. It was found that a one percent increase in sulfur dioxide results in a 0.61 percent decrease in the hours worked. The effects do not appear to be driven by labor demand shocks nor differential migration as a result of the closure in the areas located near the refinery.

Link: http://www.hks.harvard.edu/fs/rhanna/documents/w17302%20Pollution.pdf
Added by View user profileSonia Hossain on May 13, 2012