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Pollution Pictures: Psychological Exposure to Pollution Impacts Worker Productivity in a Large-scale Field Experiment

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Abstract

While contemporaneous exposure to polluted air has been shown to reduce labor supply and worker productivity, little is known about the underlying channels. We present first causal evidence that psychological exposure to pollution - the "thought of pollution" - can influence employment performance. Over 2000 recruits on a leading micro-task platform are exposed to otherwise identical images of polluted (treated) or unpolluted (control) scenes. Randomization across the geographically-dispersed workforce ensures that treatment is orthogonal to physical pollution exposure. Treated workers are less likely to accept a subsequent offer of work (labor supply) despite being offered a piece-rate much higher than is typical for the setting. Conditional on accepting the offer, treated workers complete between 5.1% to 10.1% less work depending on the nature of their assigned task. We nd no effect on work quality. Suggestive evidence points to the role of induced negative sentiment. Decrements to productivity through psychological mechanisms are plausibly additional to any from physical exposure to polluted air.

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  • Nikolai Cook, Anthony Heyes, 2022. "Pollution Pictures: Psychological Exposure to Pollution Impacts Worker Productivity in a Large-scale Field Experiment," LCERPA Working Papers bm0129, Laurier Centre for Economic Research and Policy Analysis, revised 2022.
  • Handle: RePEc:wlu:lcerpa:bm0129
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    File URL: http://www.lcerpa.org/public/papers/LCERPA_2022_1.pdf
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    Cited by:

    1. Avila Uribe, Antonio, 2023. "The effect of air pollution on US aggregate production," LSE Research Online Documents on Economics 118481, London School of Economics and Political Science, LSE Library.
    2. Heyes, Anthony & Saberian, Soodeh, 2024. "Pollution and learning: Causal evidence from Obama’s Iran sanctions," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).

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    More about this item

    Keywords

    Air Pollution; Gig Economy; Randomization; Labor Productivity;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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