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Jobs in the Smog: Firm Location and Workers’ Exposure to Pollution in African Cities

Author

Listed:
  • Vittorio Bassi
  • Matthew E. Kahn
  • Nancy Lozano Gracia
  • Tommaso Porzio
  • Jeanne Sorin

Abstract

We show that the organization of production prevalent in Ugandan cities increases workers’ exposure to urban pollution. Using new granular spatial data on air pollution and manufacturing firms, we document that small firms cluster along the busiest and most polluted roads because road traffic bundles air pollution with customer access. Even within neighborhoods, cleaner areas exist, yet jobs are in the smog. A spatial equilibrium model rationalizes these patterns, with firms capturing sizable profit gains from polluted locations while workers receive limited compensation for the exposure. Our results imply that the welfare costs of urban air pollution in developing-country cities may be substantially larger than city-level averages suggest.

Suggested Citation

  • Vittorio Bassi & Matthew E. Kahn & Nancy Lozano Gracia & Tommaso Porzio & Jeanne Sorin, 2022. "Jobs in the Smog: Firm Location and Workers’ Exposure to Pollution in African Cities," NBER Working Papers 30536, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30536
    Note: DEV EEE PR
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    Cited by:

    1. Aristotelis Epanomeritakis & Davide Viviano, 2025. "Learning What to Learn: Experimental Design when Combining Experimental with Observational Evidence," Papers 2510.23434, arXiv.org, revised Dec 2025.
    2. Kerzhner, Tamara & Chilumpha, Zayeenab & Jana, Wilfred & Tukula, Sekani & Arroyo, Fatima, 2025. "“I have no choice”: Agency, poverty and embodied experience in urban transport," Journal of Transport Geography, Elsevier, vol. 124(C).

    More about this item

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • 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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