IDEAS home Printed from https://ideas.repec.org/p/csl/devewp/506.html

Riders in the Smog: How Air Pollution Affects Workers in Urban Environments

Author

Listed:
  • Giovanna D'Adda

  • Simone Ferro
  • Tommaso Frattini
  • Alessio Romarri

Abstract

Using large-scale high-granularity data from a food delivery platform and granular pollution and weather information, we study how PM2.5 fluctuations affect riders’ absenteeism, productivity, and accidents. Exploiting exogenous pollution variation from inverse boundary layer height, we find that higher pollution increases absenteeism for all workers and raises delivery times and accident rates only among (e-)bike riders, who must exert physical effort while working. Affected workers compensate productivity losses by working longer hours. Monetary incentives mitigate the effects on absenteeism but do not offset the decline in productivity and appear to exacerbate accident risk.

Suggested Citation

  • Giovanna D'Adda & Simone Ferro & Tommaso Frattini & Alessio Romarri, 2026. "Riders in the Smog: How Air Pollution Affects Workers in Urban Environments," Development Working Papers 506, Centro Studi Luca d'Agliano, University of Milano, revised 13 May 2026.
  • Handle: RePEc:csl:devewp:506
    as

    Download full text from publisher

    File URL: https://dagliano.unimi.it/wp-content/uploads/2025/11/Riders-in-the-Smog_Nov25.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hanna, Rema & Oliva, Paulina, 2015. "The effect of pollution on labor supply: Evidence from a natural experiment in Mexico City," Journal of Public Economics, Elsevier, vol. 122(C), pages 68-79.
    2. Lavy, Victor & Rachkovski, Genia & Yoresh, Omry, 2025. "Heads up: Does air pollution cause workplace accidents?," Journal of Public Economics, Elsevier, vol. 251(C).
    3. Felix Holub & Laura Hospido & Ulrich J. Wagner, 2020. "Urban Air Pollution and Sick Leaves: Evidence From Social Security Data," CRC TR 224 Discussion Paper Series crctr224_2020_241, University of Bonn and University of Mannheim, Germany.
    4. Tatyana Deryugina & Garth Heutel & Nolan H. Miller & David Molitor & Julian Reif, 2019. "The Mortality and Medical Costs of Air Pollution: Evidence from Changes in Wind Direction," American Economic Review, American Economic Association, vol. 109(12), pages 4178-4219, December.
    5. Deschenes, Olivier & Wang, Huixia & Wang, Si & Zhang, Peng, 2020. "The effect of air pollution on body weight and obesity: Evidence from China," Journal of Development Economics, Elsevier, vol. 145(C).
    6. Laura Hospido & Carlos Sanz & Ernesto Villanueva, 2023. "Air pollution: a review of its economic effects and policies to mitigate them," Occasional Papers 2301, Banco de España.
    7. Steffen Künn & Juan Palacios & Nico Pestel, 2023. "Indoor Air Quality and Strategic Decision Making," Management Science, INFORMS, vol. 69(9), pages 5354-5377, September.
    8. Joshua Graff Zivin & Matthew Neidell, 2012. "The Impact of Pollution on Worker Productivity," American Economic Review, American Economic Association, vol. 102(7), pages 3652-3673, December.
    9. Achyuta Adhvaryu & Namrata Kala & Anant Nyshadham, 2022. "Management and Shocks to Worker Productivity," Journal of Political Economy, University of Chicago Press, vol. 130(1), pages 1-47.
    10. Bridget Hoffmann & Juan Pablo Rud, 2024. "The Unequal Effects of Pollution on Labor Supply," Econometrica, Econometric Society, vol. 92(4), pages 1063-1096, July.
    11. Ernst Fehr & Lorenz Goette, 2007. "Do Workers Work More if Wages Are High? Evidence from a Randomized Field Experiment," American Economic Review, American Economic Association, vol. 97(1), pages 298-317, March.
    12. Colin Camerer & Linda Babcock & George Loewenstein & Richard Thaler, 1997. "Labor Supply of New York City Cabdrivers: One Day at a Time," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 407-441.
    13. Sager, Lutz, 2019. "Estimating the effect of air pollution on road safety using atmospheric temperature inversions," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    14. Jamie T. Mullins, 2018. "Ambient air pollution and human performance: Contemporaneous and acclimatization effects of ozone exposure on athletic performance," Health Economics, John Wiley & Sons, Ltd., vol. 27(8), pages 1189-1200, August.
    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.
    16. Zhang, Xin & Zhang, Xiaobo & Chen, Xi, 2017. "Happiness in the air: How does a dirty sky affect mental health and subjective well-being?," Journal of Environmental Economics and Management, Elsevier, vol. 85(C), pages 81-94.
    17. Mark Borgschulte & David Molitor & Eric Yongchen Zou, 2024. "Air Pollution and the Labor Market: Evidence from Wildfire Smoke," The Review of Economics and Statistics, MIT Press, vol. 106(6), pages 1558-1575, November.
    18. A. Godzinski & M. Suarez Castillo, 2021. "Disentangling the effects of air pollutants with many instruments," Documents de Travail de l'Insee - INSEE Working Papers g2021-04, Institut National de la Statistique et des Etudes Economiques.
    19. Lichter, Andreas & Pestel, Nico & Sommer, Eric, 2017. "Productivity effects of air pollution: Evidence from professional soccer," Labour Economics, Elsevier, vol. 48(C), pages 54-66.
    20. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2008. "Bootstrap-Based Improvements for Inference with Clustered Errors," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 414-427, August.
    21. Lorenz Goette & David Huffman & Ernst Fehr, 2004. "Loss Aversion and Labor Supply," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 216-228, 04/05.
    22. Kenneth Y. Chay & Michael Greenstone, 2003. "The Impact of Air Pollution on Infant Mortality: Evidence from Geographic Variation in Pollution Shocks Induced by a Recession," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 1121-1167.
    23. Jiaxiu He & Haoming Liu & Alberto Salvo, 2019. "Severe Air Pollution and Labor Productivity: Evidence from Industrial Towns in China," American Economic Journal: Applied Economics, American Economic Association, vol. 11(1), pages 173-201, January.
    24. Tom Chang & Joshua S. Graff Zivin & Tal Gross & Matthew J. Neidell, 2019. "Corrigendum: Particulate Pollution and the Productivity of Pear Packers," American Economic Journal: Economic Policy, American Economic Association, vol. 11(3), pages 454-456, August.
    25. Wolfram Schlenker & W. Reed Walker, 2016. "Airports, Air Pollution, and Contemporaneous Health," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(2), pages 768-809.
    26. Janet Currie & Matthew Neidell, 2005. "Air Pollution and Infant Health: What Can We Learn from California's Recent Experience?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(3), pages 1003-1030.
    27. Diane Alexander & Hannes Schwandt, 2022. "The Impact of Car Pollution on Infant and Child Health: Evidence from Emissions Cheating," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(6), pages 2872-2910.
    28. Godzinski, Alexandre & Suarez Castillo, Milena, 2021. "Disentangling the effects of air pollutants with many instruments," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    29. Adam Isen & Maya Rossin-Slater & W. Reed Walker, 2017. "Every Breath You Take—Every Dollar You’ll Make: The Long-Term Consequences of the Clean Air Act of 1970," Journal of Political Economy, University of Chicago Press, vol. 125(3), pages 848-902.
    30. James Archsmith & Kenneth T. Gillingham & Christopher R. Knittel & David S. Rapson, 2020. "Attribute substitution in household vehicle portfolios," RAND Journal of Economics, RAND Corporation, vol. 51(4), pages 1162-1196, December.
    31. Tom Y. Chang & Joshua Graff Zivin & Tal Gross & Matthew Neidell, 2019. "The Effect of Pollution on Worker Productivity: Evidence from Call Center Workers in China," American Economic Journal: Applied Economics, American Economic Association, vol. 11(1), pages 151-172, January.
    32. Aragón, Fernando M. & Miranda, Juan Jose & Oliva, Paulina, 2017. "Particulate matter and labor supply: The role of caregiving and non-linearities," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 295-309.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giovanna D'Adda & Simone Ferro & Tommaso Frattini & Alessio Romarri, 2025. "Riders in the Smog: How Air Pollution Affects Workers in Urban Environments," Working Papers wpdea2518, Department of Applied Economics at Universitat Autonoma of Barcelona.
    2. Clara Kögel, 2022. "The impact of air pollution on labour productivity in France," Documents de travail du Centre d'Economie de la Sorbonne 22020, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    3. Marion Leroutier & Hélène Ollivier, 2025. "The Cost of Air Pollution for Workers and Firms," Working Papers hal-05009744, HAL.
    4. Hoffmann, Bridget & Rud, Juan Pablo, 2022. "Exposure or Income? The Unequal Effects of Pollution on Daily Labor Supply," IDB Publications (Working Papers) 11985, Inter-American Development Bank.
    5. Palma, Alessandro & Depalo, Domenico & Curci, Gabriele, 2025. "Air pollution and workplace accidents: Evidence and implications," Journal of Public Economics, Elsevier, vol. 252(C).
    6. Edoardo Porto & Joanna Kopinska & Alessandro Palma, 2021. "Labor market effects of dirty air. Evidence from administrative data," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 887-921, October.
    7. Mark Borgschulte & David Molitor & Eric Yongchen Zou, 2024. "Air Pollution and the Labor Market: Evidence from Wildfire Smoke," The Review of Economics and Statistics, MIT Press, vol. 106(6), pages 1558-1575, November.
    8. Piero Basaglia & Luis Sarmiento, 2025. "When the Boundary Layer Drops: Air Quality and Healthcare Use in Mexico," CESifo Working Paper Series 11901, CESifo.
    9. Zhenyu Yao & Wei Zhang & Xinde Ji & Weizhe Weng, 2023. "Short-Term Exposure to Air Pollution and Cognitive Performance: New Evidence from China’s College English Test," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(1), pages 211-237, May.
    10. Felix Holub & Laura Hospido & Ulrich J. Wagner, 2020. "Urban Air Pollution and Sick Leaves: Evidence From Social Security Data," CRC TR 224 Discussion Paper Series crctr224_2020_241, University of Bonn and University of Mannheim, Germany.
    11. Yamada, Daichi & Narita, Daiju, 2025. "Effects of air pollution on labor supply: Evidence from Japan," Journal of Environmental Economics and Management, Elsevier, vol. 132(C).
    12. Shihe Fu & V. Brian Viard, 2022. "A mayors perspective on tackling air pollution," Chapters, in: Charles K.Y. Leung (ed.), Handbook of Real Estate and Macroeconomics, chapter 16, pages 413-437, Edward Elgar Publishing.
    13. Yao, Yao & Li, Xue & Smyth, Russell & Zhang, Lin, 2022. "Air pollution and political trust in local government: Evidence from China," Journal of Environmental Economics and Management, Elsevier, vol. 115(C).
    14. Yu SHEN & Wenkai SUN, 2023. "Information and avoidance behaviour: The effect of air pollution disclosure on labour supply in China," International Labour Review, International Labour Organization, vol. 162(4), pages 665-686, December.
    15. Dragana Cvijanović & Lyndsey Rolheiser & Alex Van de Minne, 2024. "Commercial real estate and air pollution," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 52(3), pages 951-989, May.
    16. Natali, Ilaria, 2025. "Invisible Threat: How Airborne Pollution Fuels Antimicrobial Resistance in the EU," TSE Working Papers 25-1610, Toulouse School of Economics (TSE).
    17. Batheja, Deepshikha & Hirshleifer, Sarojini & Mullins, Jamie T., 2025. "More than particulates matter: Multiple pollutants and productivity in Indian call centers," Journal of Environmental Economics and Management, Elsevier, vol. 134(C).
    18. Kenneth Gillingham & Pei Huang, 2021. "Racial Disparities in the Health Effects from Air Pollution: Evidence from Ports," NBER Working Papers 29108, National Bureau of Economic Research, Inc.
    19. Beshir, H.A.; & Fichera, E.;, 2022. "“And Breathe Normally†: The Low Emission Zone impacts on health and well-being in England," Health, Econometrics and Data Group (HEDG) Working Papers 22/09, HEDG, c/o Department of Economics, University of York.
    20. Fu, Shihe & Viard, V. Brian & Zhang, Peng, 2022. "Trans-boundary air pollution spillovers: Physical transport and economic costs by distance," Journal of Development Economics, Elsevier, vol. 155(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:csl:devewp:506. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chiara Elli (email available below). General contact details of provider: https://edirc.repec.org/data/damilit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.