Working Paper: NBER ID: w19858
Authors: Adam Isen; Maya Rossin-Slater; W. Reed Walker
Abstract: This paper examines the long-term impacts of early childhood exposure to air pollution on adult outcomes using U.S. administrative data. We exploit changes in air pollution driven by the 1970 Clean Air Act to analyze the difference in outcomes between cohorts born in counties before and after large improvements in air pollution relative to those same cohorts born in counties that had no improvements. We find a significant relationship between pollution exposure in the year of birth and later life outcomes. A higher pollution level in the year of birth is associated with lower labor force participation and lower earnings at age 30.
Keywords: Clean Air Act; Air Pollution; Labor Market Outcomes; Environmental Regulation
JEL Codes: H40; H51; I12; I14; J17; J18; J31; Q51; Q53; Q58
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| reduced air pollution due to the 1970 Clean Air Act (Q52) | long-term labor market outcomes (J29) |
| 10 gm3 reduction in TSP levels in the year of birth (J89) | 1% increase in average annual earnings (J31) |
| 10 gm3 reduction in TSP levels in the year of birth (J89) | 0.7% increase in the number of quarters worked by age 30 (J19) |
| long-term labor market outcomes (J29) | cumulative lifetime income gain from improved air quality (J17) |
| long-term labor market outcomes (J29) | total wage bill for each affected cohort (J39) |