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Medium- and long-term consequences of pollution on labor supply: evidence from Indonesia

Author

Listed:
  • Younoh Kim

    (Sam Houston State University)

  • James Manley

    (Towson University)

  • Vlad Radoias

    (Sam Houston State University)

Abstract

We use a natural experiment in Indonesia to study the medium- and long-term effects of air pollution on labor supply. We find that exposure to air pollution reduces hours worked and while the medium-term effects are larger in magnitude, some effects do persist in the long term. 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 term, while in the medium term, a different channel based on dependent caregiving is the most important. JEL Classification: J22, Q53

Suggested Citation

  • Younoh Kim & James Manley & Vlad Radoias, 2017. "Medium- and long-term consequences of pollution on labor supply: evidence from Indonesia," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-15, December.
    • Handle: RePEc:spr:izalbr:v:6:y:2017:i:1:d:10.1186_s40172-017-0055-2
    DOI: 10.1186/s40172-017-0055-2
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    Cited by:

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    2. Shi, Xinjie & Shen, Yu & Song, Ran, 2023. "Living with particles: Disclosure of pollution information, individual responses, and health consequences," Journal of Health Economics, Elsevier, vol. 92(C).
    3. Hongbin Dai & Guangqiu Huang & Huibin Zeng & Fan Yang, 2021. "PM 2.5 Concentration Prediction Based on Spatiotemporal Feature Selection Using XGBoost-MSCNN-GA-LSTM," Sustainability, MDPI, vol. 13(21), pages 1-24, November.
    4. Qing Zhao & Chih-Hung Yuan, 2020. "Did Haze Pollution Harm the Quality of Economic Development?—An Empirical Study Based on China’s PM2.5 Concentrations," Sustainability, MDPI, vol. 12(4), pages 1-16, February.
    5. Bridget Hoffmann & Juan Pablo Rud, 2022. "Exposure or Income? The Unequal Effects of Pollution on Daily Labor Supply," Working Papers 109, Red Nacional de Investigadores en Economía (RedNIE).
    6. Guillermo Montt, 2018. "Too polluted to work? The gendered correlates of air pollution on hours worked," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-18, December.
    7. Edoardo Porto & Joanna Kopinska & Alessandro Palma, 2021. "Labor market effects of dirty air. Evidence from administrative data," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 887-921, October.
    8. Luis Sarmiento, 2022. "Air pollution and the productivity of high‐skill labor: evidence from court hearings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(1), pages 301-332, January.
    9. Li, Meng & Zhou, Shaojie, 2023. "Pollutive cooking fuels and rural labor supply: Evidence from a large-scale population census in China," Energy Policy, Elsevier, vol. 183(C).
    10. Singh, Prachi & Dey, Sagnik, 2021. "Crop burning and forest fires: Long-term effect on adolescent height in India," Resource and Energy Economics, Elsevier, vol. 65(C).
    11. Luis Sarmiento, 2020. "Waiting for My Sentence: Air Pollution and the Productivity of Court Rulings," Discussion Papers of DIW Berlin 1878, DIW Berlin, German Institute for Economic Research.
    12. Junfeng Kang & Xinyi Zou & Jianlin Tan & Jun Li & Hamed Karimian, 2023. "Short-Term PM 2.5 Concentration Changes Prediction: A Comparison of Meteorological and Historical Data," Sustainability, MDPI, vol. 15(14), pages 1-24, July.
    13. Xiao Yu & Jianing Liang & Yanzhe Zhang, 2022. "Air Pollution and Settlement Intention: Evidence from the China Migrants Dynamic Survey," IJERPH, MDPI, vol. 19(8), pages 1-16, April.
    14. Yu SHEN & Wenkai SUN, 2023. "Information and avoidance behaviour: The effect of air pollution disclosure on labour supply in China," International Labour Review, International Labour Organization, vol. 162(4), pages 665-686, December.
    15. Edwards, Ryan B. & Naylor, Rosamond L. & Higgins, Matthew M. & Falcon, Walter P., 2020. "Causes of Indonesia’s forest fires," World Development, Elsevier, vol. 127(C).
    16. Ye, Hai-Jian & Huang, Zuhui & Chen, Shuai, 2023. "Air pollution and agricultural labor supply: Evidence from China," China Economic Review, Elsevier, vol. 82(C).

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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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