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

Author

Listed:
  • Younoh Kim

    (Department of Economics, Sam Houston State University)

  • James Manley

    (Department of Economics, Towson University)

  • Vlad Radoias

    (Department of Economics, Sam Houston State University)

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

Suggested Citation

  • Younoh Kim & James Manley & Vlad Radoias, 2017. "Medium- and Long-run Consequences of Pollution on Labor Supply: Evidence from Indonesia's Forest Fires of 1997," Working Papers 2017-02, Towson University, Department of Economics, revised Mar 2017.
    • Handle: RePEc:tow:wpaper:2017-02
    as

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    File URL: http://webapps.towson.edu/cbe/economics/workingpapers/2017-02.pdf
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    References listed on IDEAS

    as
    1. Hanna, Rema & Oliva, Paulina, 2015. "The effect of pollution on labor supply: Evidence from a natural experiment in Mexico City," Journal of Public Economics, Elsevier, vol. 122(C), pages 68-79.
    2. van Doorslaer, Eddy & Gerdtham, Ulf-G., 2003. "Does inequality in self-assessed health predict inequality in survival by income? Evidence from Swedish data," Social Science & Medicine, Elsevier, vol. 57(9), pages 1621-1629, November.
    3. Kenneth Y. Chay & Michael Greenstone, 2003. "The Impact of Air Pollution on Infant Mortality: Evidence from Geographic Variation in Pollution Shocks Induced by a Recession," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 1121-1167.
    4. Kim, Younoh & Knowles, Scott & Manley, James & Radoias, Vlad, 2017. "Long-run health consequences of air pollution: Evidence from Indonesia's forest fires of 1997," Economics & Human Biology, Elsevier, vol. 26(C), pages 186-198.
    5. Joshua Graff Zivin & Matthew Neidell, 2012. "The Impact of Pollution on Worker Productivity," American Economic Review, American Economic Association, vol. 102(7), pages 3652-3673, December.
    6. Adam Isen & Maya Rossin-Slater & W. Reed Walker, 2017. "Every Breath You Take—Every Dollar You’ll Make: The Long-Term Consequences of the Clean Air Act of 1970," Journal of Political Economy, University of Chicago Press, vol. 125(3), pages 848-902.
    7. Seema Jayachandran, 2009. "Air Quality and Early-Life Mortality: Evidence from Indonesia’s Wildfires," Journal of Human Resources, University of Wisconsin Press, vol. 44(4).
    8. Kenneth Y. Chay & Michael Greenstone, 2003. "Air Quality, Infant Mortality, and the Clean Air Act of 1970," Working Papers 0406, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
    9. Janet Currie & Matthew Neidell, 2005. "Air Pollution and Infant Health: What Can We Learn from California's Recent Experience?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(3), pages 1003-1030.
    10. Fernando M. Aragon & Juan Jose Miranda & Paulina Oliva, 2016. "Particulate matter and labor supply: evidence from Peru," Discussion Papers dp16-01, Department of Economics, Simon Fraser University.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    More about this item

    Keywords

    Air Pollution; Working Hours; Indonesia.;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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