Particulate Pollution and the Productivity of Pear Packers

TLDR

Outdoor air pollution can affect indoor worker productivity, but pollutants that do not penetrate indoors, such as ozone, have minimal impact. The study investigates how outdoor particulate pollution influences productivity of indoor workers in a pear‑packing factory. Elevated PM2.5 concentrations, even below air‑quality standards, significantly reduce productivity, suggesting that nationwide PM2.5 reductions could generate substantial welfare benefits. JEL codes: D24, J24, L66, Q13, Q51, Q53.

Abstract

We study the effect of outdoor air pollution on the productivity of indoor workers at a pear-packing factory. Increases in fine particulate matter (PM 2.5 ), a pollutant that readily penetrates indoors, leads to significant decreases in productivity, with effects arising at levels below air quality standards. In contrast, pollutants that do not travel indoors, such as ozone, have little, if any, effect on productivity. This effect of outdoor pollution on indoor worker productivity suggests an overlooked consequence of pollution. Back-of-the-envelope calculations suggest the labor savings from nationwide reductions in PM 2.5 generated a sizable fraction of total welfare benefits. (JEL D24, J24, L66, Q13, Q51, Q53)