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Institute of Economics

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  7. Lecture by Prof. Dr. Maria Waldinger, KU Eichstätt-Ingolstadt, at the BERG Research Seminar on the 10th of November

Lecture by Prof. Dr. Maria Waldinger, KU Eichstätt-Ingolstadt, at the BERG Research Seminar on the 10th of November

We are pleased to announce that Prof. Dr. Maria Waldinger, KU Eichstätt-Ingolstadt, will give a lecture within the BERG-Research Seminar on the topic of

The Long-Term Effects of Air Pollution on Health and Labor Market Outcomes: Evidence from Socialist East Germany

The date is Tuesday, 10th of November, 3 p.m., in room F21/01.30 (Dekantsraum)

 

Abstract

What are the long-run effects of sustained exposure to air pollution? A unique natural experiment allows us to examine this question. In 1982, a sudden reduction in Soviet oil supplies forced Socialist East Germany to switch to highly polluting lignite coal. While the shock led to sharp increases in air pollution near mining regions, authoritarian restrictions on mobility, housing, and labor markets limited sorting responses. We document persistent adverse labor market effects over three decades and across age groups. Exposed individuals work less, earn lower wages, and retire earlier. These estimates imply larger social costs of pollution than previously documented. Health is a key mechanism: Infant mortality increases by 9%, and the long-run incidence of asthma and cardiovascular disease rises significantly.