The Impact of Pollution on Worker Productivity

The Impact of Pollution on Worker Productivity

2012 December | Joshua Graff Zivin and Matthew Neidell
This paper examines the impact of pollution on worker productivity, focusing on agricultural workers in California's Central Valley. It finds that a 10 parts per billion (ppb) decrease in ozone levels increases worker productivity by 5.5 percent. The study uses a unique panel dataset on agricultural worker productivity and environmental conditions to estimate the relationship between ozone pollution and productivity. The results suggest that pollution negatively affects productivity, particularly in physically demanding work environments. The study also highlights the importance of considering environmental productivity effects in policy decisions, as environmental protection can be viewed as an investment in human capital rather than a tax on producers and consumers. The findings have implications for environmental policy, particularly in developing countries where agriculture plays a significant role in the economy. The study also addresses potential concerns about shirking and the impact of minimum wage laws on worker productivity. Overall, the paper provides new insights into the relationship between environmental quality and worker productivity, with important implications for economic growth and public health.This paper examines the impact of pollution on worker productivity, focusing on agricultural workers in California's Central Valley. It finds that a 10 parts per billion (ppb) decrease in ozone levels increases worker productivity by 5.5 percent. The study uses a unique panel dataset on agricultural worker productivity and environmental conditions to estimate the relationship between ozone pollution and productivity. The results suggest that pollution negatively affects productivity, particularly in physically demanding work environments. The study also highlights the importance of considering environmental productivity effects in policy decisions, as environmental protection can be viewed as an investment in human capital rather than a tax on producers and consumers. The findings have implications for environmental policy, particularly in developing countries where agriculture plays a significant role in the economy. The study also addresses potential concerns about shirking and the impact of minimum wage laws on worker productivity. Overall, the paper provides new insights into the relationship between environmental quality and worker productivity, with important implications for economic growth and public health.
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[slides and audio] The Impact of Pollution on Worker Productivity