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Can Pollution Cause Poverty? The Effects of Pollution on Educational, Health, and Economic Outcomes

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  • Claudia Persico

Abstract

Although pollution is widespread, there is little evidence on how it affects children's long‐run outcomes. Using detailed, geocoded longitudinal data, we compare siblings who were gestating before versus after a Toxic Release Inventory site opened or closed within one mile of their home. We find that children who were exposed prenatally to industrial pollution have lower wages, are more likely to live in poverty as adults, have fewer years of completed education, and score lower on a summary index of long‐run outcomes than their unexposed siblings.

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  • Claudia Persico, 2026. "Can Pollution Cause Poverty? The Effects of Pollution on Educational, Health, and Economic Outcomes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 45(2), March.
    • Handle: RePEc:wly:jpamgt:v:45:y:2026:i:2:n:e70091
    DOI: 10.1002/pam.70091
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    3. Jacqz, Irene, 2022. "Toxic test scores: The impact of chemical releases on standardized test performance within U.S. schools," Journal of Environmental Economics and Management, Elsevier, vol. 115(C).
    4. Chen, Pan, 2025. "Industrialization and pollution: The long-term Impact of early-life exposure on human capital formation," Journal of Public Economics, Elsevier, vol. 241(C).
    5. Sandra Aguilar-G√≥mez & Juan Camilo C√°rdenas & Ricardo Salas D√≠az, 2024. "Environmental Justice Beyond Race: Skin Tone and Exposure to Air Pollution," Documentos CEDE 21042, Universidad de los Andes, Facultad de Economía, CEDE.
    6. Chen, Fanglin & Zhang, Xin & Chen, Zhongfei, 2023. "Behind climate change: Extreme heat and health cost," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 101-110.
    7. Erixson, Oscar & Granath, Jakob & Hu, Xiao & Öhman, Mattias, 2024. "Toxic Metal Injustice? Socioeconomic status at birth and exposure to airborne pollution," Journal of Urban Economics, Elsevier, vol. 144(C).
    8. Irene Jacqz & Tugba Somuncu & John Voorheis, 2024. "Fighting Fire with Fire(fighting Foam): The Long Run Effects of PFAS Use at U.S. Military Installations," Working Papers 24-72, Center for Economic Studies, U.S. Census Bureau.
    9. Rüttenauer, Tobias & Best, Henning, 2021. "Consistent Inequality across Germany? Exploring Spatial Heterogeneity in the Unequal Distribution of Air Pollution," SocArXiv 5tavs, Center for Open Science.
    10. Matthew E. Kahn & Nancy Lozano‐Gracia & Maria Edisa Soppelsa, 2021. "Pollution'S Role In Reducing Urban Quality Of Life In The Developing World," Journal of Economic Surveys, Wiley Blackwell, vol. 35(1), pages 330-347, February.
    11. Ferro, Simone & Palma, Alessandro & Serra, Chiara & Stafoggia, Massimo, 2024. "Beyond birth: The medium-term health impact of prenatal exposure to air pollution," Journal of Environmental Economics and Management, Elsevier, vol. 127(C).
    12. von Hinke, Stephanie & Sørensen, Emil N., 2023. "The long-term effects of early-life pollution exposure: Evidence from the London smog," Journal of Health Economics, Elsevier, vol. 92(C).

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    More about this item

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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