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The Effect of Pollution and Heat on High Skill Public Sector Worker Productivity in China

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  • Matthew E. Kahn
  • Pei Li

Abstract

The quality of governance depends on public sector worker productivity. We use micro data from China to document that judges are less productive on polluted days. Building on the insights of Alchian and Kessel (1962), we discuss the role of organization design and the incentives of public versus for profit organizations in designing a workplace that reduces the productivity costs of local disamenities. We find that the public sector productivity elasticities are larger than published estimates of the private sector productivity elasticities with respect to pollution.

Suggested Citation

  • Matthew E. Kahn & Pei Li, 2019. "The Effect of Pollution and Heat on High Skill Public Sector Worker Productivity in China," NBER Working Papers 25594, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:25594
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    2. de Oliveira, Guilherme & Lima, Gilberto Tadeu, 2022. "Economic growth as a double-edged sword: The pollution-adjusted Kaldor-Verdoorn effect," Ecological Economics, Elsevier, vol. 199(C).
    3. Juliana Carneiro & Matthew A. Cole & Eric Strobl, 2024. "Foetal Exposure to Air Pollution and Students' Cognitive Performance: Evidence from Agricultural Fires in Brazil," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 86(1), pages 156-186, February.
    4. Diane Alexander & Hannes Schwandt, 2022. "The Impact of Car Pollution on Infant and Child Health: Evidence from Emissions Cheating [Management and Shocks to Worker Productivity]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(6), pages 2872-2910.
    5. Agarwal, Sumit & Wang, Long & Yang, Yang, 2021. "Impact of transboundary air pollution on service quality and consumer satisfaction," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 357-380.
    6. Lai, Wangyang & Song, Hong & Wang, Chang & Wang, Huanhuan, 2021. "Air pollution and brain drain: Evidence from college graduates in China," China Economic Review, Elsevier, vol. 68(C).
    7. Guo, Liwen & Cheng, Zhiming & Tani, Massimiliano & Cook, Sarah & Zhao, Jiaqi & Chen, Xi, 2022. "Air Pollution and Entrepreneurship," GLO Discussion Paper Series 1196, Global Labor Organization (GLO).
    8. Dube, Benjamin, 2021. "Why cross and mix disciplines and methodologies?: Multiple meanings of Interdisciplinarity and pluralism in ecological economics," Ecological Economics, Elsevier, vol. 179(C).
    9. Heilmann, Kilian & Kahn, Matthew E. & Tang, Cheng Keat, 2021. "The urban crime and heat gradient in high and low poverty areas," Journal of Public Economics, Elsevier, vol. 197(C).
    10. Joris Klingen & Jos Ommeren, 2022. "Risk-Taking and Air Pollution: Evidence from Chess," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(1), pages 73-93, January.
    11. Mengna Luan & Zhigang Tao & Hongjie Yuan, 2023. "Alive but not well: The neglected cost of air pollution," Health Economics, John Wiley & Sons, Ltd., vol. 32(11), pages 2535-2567, November.
    12. Joris Klingen & Jos van Ommeren, 2020. "Risk attitude and air pollution: Evidence from chess," Tinbergen Institute Discussion Papers 20-027/VIII, Tinbergen Institute.
    13. Chodick, Gabriel & Goldstein, Yoav & Shurtz, Ity & Zeltzer, Dan, 2022. "Challenging Encounters and Within-Physician Practice Variability," IZA Discussion Papers 15441, Institute of Labor Economics (IZA).
    14. Künn, Steffen & Palacios, Juan & Pestel, Nico, 2019. "Indoor Air Quality and Cognitive Performance," IZA Discussion Papers 12632, Institute of Labor Economics (IZA).
    15. Luis Sarmiento, 2022. "Air pollution and the productivity of high‐skill labor: evidence from court hearings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(1), pages 301-332, January.

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    More about this item

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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