The E ect of Pollution on Labor Supply: Evidence from a Natural Experiment in Mexico City∗

نویسندگان

  • Rema Hanna
  • Paulina Oliva
  • Maria Teresa Garrido
  • Luisa Soto
چکیده

Moderate e ects of pollution on health may exert an important in uence on labor market decisions. We exploit exogenous variation in pollution due to the closure of a large re nery in Mexico City to understand how pollution impacts labor supply. The closure led to an 8 percent decline in pollution in the surrounding neighborhoods. We nd that a one percent increase in sulfur dioxide results in a 0.72 percent decrease in the hours worked. The e ects do not appear to be driven by labor demand shocks nor di erential migration as a result of the closure in the areas located near the re nery.

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تاریخ انتشار 2011