Heterogeneity in the impact of air pollution on labor mobility: Insights from panel data analysis in China

Abstract

With the persistent focus on quality of life, the detrimental effects of air pollution have emerged as a significant factor influencing labor mobility globally. This study utilizes panel data from 31 provinces in China spanning the years 2012 to 2021 to examine the relationship between air pollution and labor mobility. The research results indicate that air pollution has a positive impact on labor mobility, with a labor loss of 0.125 % for every 1 % increase in PM2.5 concentration. Education, healthcare, urbanization, and cultural factors also affect labor mobility to different degrees within regions. Notably, the influence of air pollution on labor mobility exhibits significant heterogeneity across diverse regions. While economically developed areas display lower sensitivity to air pollution, regions with relatively underdeveloped economies witness an intensification of human capital mobility in response to rising pollution levels. This study contributes to the existing literature on the repercussions of air pollution on labor mobility, furnishing valuable empirical insights for the formulation of environmental governance and labor mobility-related policies worldwide.