Air Pollution, Health Shocks and Labor Mobility

Abstract

The health shocks caused by air pollution seriously interfere with people’s economic life. Based on the air pollution index and health shock index calculated by the principal component entropy weight method, this article analyzes the impact of air pollution on labor mobility, and adopts the mediation effect model to test the mediation effect of health shocks, using the threshold model to analyze the time and the health shocks threshold effect of air pollution on labor mobility. Its conclusions are as follows: (1) Air pollution has a negative impact on the net inflow of labor mobility, and the net inflow of labor mobility decreases between 24.9% and 44.7% on average for each unit increase in the health shocks of air pollution. (2) The impact of air pollution on labor mobility is all caused by health shocks; the health shocks are also an important factor influencing the decrease in the labor mobility supply across provinces, and the different health levels of the migrating individuals due to air pollution. (3) The health shocks of air pollution have a single-time threshold effect on labor mobility, and the health shocks of air pollution in China have intensified after 2010, confirming that China’s Lewis turning point was 2010. (4) The attraction effect of stable and higher regional real income will partially offset the repulsion effect of health shocks of air pollution on labor mobility, when the health-shocks index of air pollution exceeds the threshold value of 1.9873. Finally, the policy implications of the health shocks of air pollution on labor mobility are also formulated.