The Effect of Pollution on Worker Productivity: Evidence from Call Center Workers in China

Abstract

We investigate the effect of pollution on worker productivity in the service sector by focusing on two call centers in China. Using precise measures of each worker’s daily output linked to daily measures of pollution and meteorology, we find that higher levels of air pollution decrease worker productivity. These results manifest themselves at levels of pollution commonly found in large cities throughout the developing and developed world. (JEL J24, L84, O13, P23, P28, Q51, Q53)