Air pollution lowers high skill public sector worker productivity in China

Abstract

Abstract China’s urbanites continue to be exposed to high levels of air pollution. Such pollution exposure raises mortality risk, lowers the day-to-day sentiment of the population and lowers outdoor worker productivity. Using a unique set of data for Chinese judges, we document that local air pollution also lowers the productivity of high skilled government officials who work indoors. Our new evidence on the effects of air pollution highlights both the challenge that pollution poses for quality of life and workforce productivity and indicates that the Chinese urban elites gain co-benefits when their cities burn less fossil fuel.