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
Date Written: January 2, 2017
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: Suggested Citation