Research Insights: How Do High Levels of Fine Particulate Matter Impact Daily Labor Supply in Mexico City?
Peer Reviewed
Date issued
July 2022
Publication
Subject
Labor Demand;
Air Quality;
Labor Force;
Health;
Informal Labor;
Labor;
Formal Labor;
Health Facilities;
Metropolitan Area
JEL code
Q52 - Pollution Control Adoption and Costs • Distributional Effects • Employment Effects;
Q53 - Air Pollution • Water Pollution • Noise • Hazardous Waste • Solid Waste • Recycling;
J22 - Time Allocation and Labor Supply;
J46 - Informal Labor Markets;
I14 - Health and Inequality
Country
Mexico
Category
Catalogs and Brochures
There is a negative, non-linear relationship between fine particulate matter (PM 2.5) and same-day labor supply, with strong effects on extremely polluted days. Workers partially compensate for lost hours by increasing their labor supply on days that follow high-pollution days. Informal workers reduce their labor supply less than formal workers on high-pollution days and compensate less on the following days. This suggests that informal workers may experience greater exposure to high pollution and greater reductions in labor supply and income.
