Arbeitspapier

Air Pollution and the Labor Market: Evidence from Wildfire Smoke

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.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 15373

Klassifikation
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
Thema
air pollution
labor market
wildfires

Ereignis
Geistige Schöpfung
(wer)
Borgschulte, Mark
Molitor, David
Zou, Eric Yongchen
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Arbeitspapier

Beteiligte

  • Borgschulte, Mark
  • Molitor, David
  • Zou, Eric Yongchen
  • Institute of Labor Economics (IZA)

Entstanden

  • 2022

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