000 03400cam a22003977 4500
001 w28401
003 NBER
005 20211020103324.0
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008 210910s2021 mau fo 000 0 eng d
100 1 _aKhanna, Gaurav.
245 1 4 _aThe Productivity Consequences of Pollution-Induced Migration in China /
_cGaurav Khanna, Wenquan Liang, Ahmed Mushfiq Mobarak, Ran Song.
260 _aCambridge, Mass.
_bNational Bureau of Economic Research
_c2021.
300 _a1 online resource:
_billustrations (black and white);
490 1 _aNBER working paper series
_vno. w28401
500 _aJanuary 2021.
520 3 _aMigration and pollution are two defining features of China's impressive growth performance over the last 30 years. In this paper we study the migration response to pollution in Chinese cities, and its consequences for productivity and welfare. We document a robust pattern in which skilled workers emigrate more in response to pollution than the unskilled. Their greater sensitivity to air quality holds up in cross-sectional variation across cities, panel variation with individual fixed-effects, and when instrumenting for pollution using distant power-plants upwind of cities, or thermal inversions that trap pollution. Pollution therefore changes the spatial distribution of skilled and unskilled workers, which results in higher returns to skill in cities that the educated migrate away from. We quantify the loss in aggregate productivity due to this re-sorting by estimating a model of demand and supply of skilled and unskilled workers across Chinese cities. Counterfactual simulations from the estimated model show that reducing pollution would increase productivity through spatial re-sorting by approximately as much as the direct health benefits of clean air. Physical and institutional restrictions on mobility exacerbate welfare losses. People's dislike of pollution explains a substantial portion of the wage gap between cities.
530 _aHardcopy version available to institutional subscribers
538 _aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538 _aMode of access: World Wide Web.
588 0 _aPrint version record
690 7 _aE24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity
_2Journal of Economic Literature class.
690 7 _aJ61 - Geographic Labor Mobility • Immigrant Workers
_2Journal of Economic Literature class.
690 7 _aO18 - Urban, Rural, Regional, and Transportation Analysis • Housing • Infrastructure
_2Journal of Economic Literature class.
690 7 _aQ52 - Pollution Control Adoption and Costs • Distributional Effects • Employment Effects
_2Journal of Economic Literature class.
690 7 _aR12 - Size and Spatial Distributions of Regional Economic Activity
_2Journal of Economic Literature class.
700 1 _aLiang, Wenquan.
700 1 _aMobarak, Ahmed Mushfiq.
700 1 _aSong, Ran.
710 2 _aNational Bureau of Economic Research.
830 0 _aWorking Paper Series (National Bureau of Economic Research)
_vno. w28401.
856 4 0 _uhttps://www.nber.org/papers/w28401
856 _yAcceso en lĂ­nea al DOI
_uhttp://dx.doi.org/10.3386/w28401
942 _2ddc
_cW-PAPER
999 _c319721
_d278283