Extra JESS seminar: Effects of Air Pollution on Health, Productivity, and Health Care Consumption

Using highly detailed Norwegian population register data, we examine the short-term relationship between ambient air pollution and indicators of health and of worker productivity. We examine four main outcomes: primary doctor visits, hospitalization, mortality, and sickness absence from work. For all of these indices we have the related diagnoses. Estimating two-way fixed effects models using geographical and time variation in exposure to particulate matter (PM10) and nitrogen dioxide (NO2), we find that the number of GP consultations, certified sick leave, hospital visits, and mortality increase in periods with high(er) pollution levels. There is substantial heterogeneity in this relationship. We confirm previous results showing that pollution affects vulnerable groups like children under five and the elderly negatively. Importantly, this study shows that also the working age population is negatively affected, even at an arguably low level of pollution.
This in turn causes a loss in productivity across the economy due to increased
sickness absence.