Air Pollution and the Labor Market: Evidence from Wildfire Smoke

Arbeitspapier

We study how air pollution impacts the U.S. labor market by analyzing effects of drifting wildfire smoke that can affect populations far from the fires themselves. We link satellite smoke plume with labor market outcomes to estimate that an additional day of smoke exposure reduces quarterly earnings by about 0.1 percent. Extensive margin responses, including employment reductions and labor force exits, can explain 13 percent of the overall earnings losses. The implied welfare cost of lost earnings due to air pollution exposure is on par with standard valuations of the mortality burden. The findings suggest that labor market channels warrant greater consideration in policy responses to air pollution.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 15373

Classification and Topics

• Classification: Wirtschaft ; Labor Force and Employment, Size, and Structure ; Valuation of Environmental Effects ; Pollution Control Adoption and Costs; Distributional Effects; Employment Effects ; Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling ; Climate; Natural Disasters and Their Management; Global Warming
• Subject: air pollution ; labor market ; wildfires

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Borgschulte, Mark ; Molitor, David ; Zou, Eric Yongchen
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/263589
• Last update: 10.03.2025, 11:41 AM CET