Medium- and Long-Run Consequences of Pollution on Labor Supply: Evidence from Indonesia

IZA J Labor Econ (2017) 6: 5

Posted: 3 Feb 2017 Last revised: 21 Apr 2018

See all articles by Younoh Kim

Younoh Kim

Sam Houston State University - College of Business Administration

James Manley

Towson University - Department of Economics

Vlad Radoias

Sam Houston State University - College of Business Administration

Date Written: January 2, 2017

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.

Keywords: Air Pollution, Working Hours, Indonesia

JEL Classification: J22, Q53

Suggested Citation

Kim, Younoh and Manley, James and Radoias, Vlad, Medium- and Long-Run Consequences of Pollution on Labor Supply: Evidence from Indonesia (January 2, 2017). IZA J Labor Econ (2017) 6: 5, Available at SSRN: https://ssrn.com/abstract=2909185 or http://dx.doi.org/10.2139/ssrn.2909185

Younoh Kim

Sam Houston State University - College of Business Administration ( email )

1803 Ave I
Huntsville, TX 77341
United States

James Manley

Towson University - Department of Economics ( email )

Towson, MD 21204
United States

Vlad Radoias (Contact Author)

Sam Houston State University - College of Business Administration ( email )

1803 Ave I
Huntsville, TX 77341
United States

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