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Pollution and Labor Productivity : Evidence from Chilean Cities (Inglés)

This paper investigates the effects of pollution on labor productivity in Chile. Data on fine particulate matter pollution in Chile were collected and matched to sectoral labor productivity at the city level. The endogeneity between labor productivity and pollution is controlled for by instrumenting on the presence of coal and diesel power plants. The paper finds that pollution reduces labor productivity. A series of robustness checks demonstrate...
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