@techreport{NBERw17302, title = "The Effect of Pollution on Labor Supply: Evidence from a Natural Experiment in Mexico City", author = "Rema Hanna and Paulina Oliva", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "17302", year = "2011", month = "August", URL = "http://www.nber.org/papers/w17302", abstract = {Moderate effects of pollution on health may exert an important influence on labor market decisions. We exploit exogenous variation in pollution due to the closure of a large refinery in Mexico City to understand how pollution impacts labor supply. The closure led to an 8 percent decline in pollution in the surrounding neighborhoods. We find that a one percent increase in sulfur dioxide results in a 0.61 percent decrease in the hours worked. The effects do not appear to be driven by labor demand shocks nor differential migration as a result of the closure in the areas located near the refinery.}, }