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Jobs in the Smog: Firm Location and Workers’ Exposure to Pollution in African Cities

Author

Listed:
  • Vittorio Bassi
  • Matthew E. Kahn
  • Nancy Lozano Gracia
  • Tommaso Porzio
  • Jeanne Sorin

Abstract

Air pollution within African cities is high but unevenly distributed. In principle, individuals could mitigate the severe health risk by working in the less polluted parts of the city. In practice, we show that pollution avoidance is challenging because firms locate on the busiest and most polluted roads searching for customer visibility. Both workers and entrepreneurs bear the cost of this pollution exposure, but the benefits are unequally distributed: profits are much higher in polluted areas, while compensating differentials in wages are minimal. An information experiment reveals limited awareness of pollution, suggesting that workers might be undercompensated for their exposure.

Suggested Citation

  • Vittorio Bassi & Matthew E. Kahn & Nancy Lozano Gracia & Tommaso Porzio & Jeanne Sorin, 2022. "Jobs in the Smog: Firm Location and Workers’ Exposure to Pollution in African Cities," NBER Working Papers 30536, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30536
    Note: DEV EEE PR
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    More about this item

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • 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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