Air Pollution and the Labor Market: Evidence from Wildfire Smoke

A-Tier
Journal: Review of Economics and Statistics
Year: 2024
Volume: 106
Issue: 6
Pages: 1558-1575

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study how air pollution impacts the U.S. labor market by analyzing the effects of drifting wildfire smoke. We link satellite-based smoke plume data with labor market outcomes to estimate that an additional day of smoke exposure reduces quarterly earnings by about 0.1%. Extensive margin responses, including employment reductions and labor force exits, explain 13% of the overall earnings losses. The implied welfare costs from lost earnings due to air pollution exposure is on par with standard valuations of the mortality burden. The findings highlight the importance of labor market channels in air pollution policy responses.

Technical Details

RePEc Handle
repec:tpr:restat:v:106:y:2024:i:6:p:1558-1575
Journal Field
General
Author Count
3
Added to Database
2026-01-26