Does Air Pollution Decrease Labor Supply of the Rural Middle-Aged and Elderly?

Abstract

This paper investigates the impact of air pollution on the labor supply of the middle-aged and elderly in rural China. The results suggest that exposure to high concentrations of PM2.5 has detrimental effects on working hours of the middle-aged and elderly. We further demonstrate the heterogeneous effects of PM2.5 by income and geographic regions. In particular, people with vulnerable economic conditions are more likely than others to reduce their labor hours due to PM2.5 exposure. Moreover, higher PM2.5 levels affected people in Central and Northeastern China more significantly than those in other regions.