Hanna, RemaOliva, Paulina2020-11-182011-08Hanna, Rema, and Paulina Oliva. “The Effect of Pollution on Labor Supply: Evidence from a Natural Experiment in Mexico City.” CID Working Paper Series 2011.225, Harvard University, Cambridge, MA, August 2011.https://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37366249Moderate 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.en-USResearch Paper or Report2020-11-18