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Air Pollution, Health Shocks and Labor Mobility
Yi Zhang1, Tao Shi2, Ai-Jun Wang3
1School of Business, Jiangsu Normal University, Xuzhou 221116, China.
Air pollution negatively impacts labor mobility, primarily through health shocks. Higher income can offset this, but only after pollution
Area of Science:
- Environmental Economics
- Public Health
- Labor Economics
Background:
- Air pollution poses significant health risks, impacting economic activities.
- Understanding the link between environmental quality and labor mobility is crucial for policy-making.
Purpose of the Study:
- To analyze the effect of air pollution on labor mobility.
- To investigate the mediating role of health shocks.
- To examine the threshold effects of air pollution on labor mobility.
Main Methods:
- Principal Component Entropy Weight Method for index calculation.
- Mediation Effect Model to test health shock mediation.
- Threshold Model for time and health shock effects.
Main Results:
- Air pollution reduces net labor inflow by 24.9%-44.7% per unit increase in health shocks.
- Health shocks are the primary driver of reduced labor mobility.
- A single-time threshold effect exists, with intensified pollution impacts post-2010.
Conclusions:
- Health shocks from air pollution significantly deter labor mobility.
- China's Lewis turning point in 2010 coincided with intensified pollution impacts.
- Policy interventions should address both pollution and economic incentives.
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