@article{40, author = {Rema Hanna and Paulina Oliva}, title = {The Effect of Pollution on Labor Supply: Evidence from a Natural Experiment in Mexico}, abstract = {Moderate effects of pollution on health may exert an important influence on labor market decisions. We exploit exogenous variation in pollution due to the closure of a large refinery in Mexico City to understand how pollution impacts labor supply. The closure led to an 8 percent decline in pollution in the surrounding neighborhoods. We find that a one percent increase in sulfur dioxide results in a 0.61 percent decrease in the hours worked. The effects do not appear to be driven by labor demand shocks nor differential migration as a result of the closure in the areas located near the refinery.}, year = {2015}, journal = {The Journal of Public Economics}, volume = {122}, pages = {68-79}, }