Home Economy Productive Consequences of Pollution-Caused Migration in China: Economy

Productive Consequences of Pollution-Caused Migration in China: Economy


Why do workers stay in low productivity sectors when they can get a raise in other places? While the literature has offered some explanations, including the high cost and risky nature of migration, this column uses the Chinese case to examine the role of pollution. It found that severe pollution could cause workers to move from productive areas to inefficient ones, suggesting that pollution control, along with policies that facilitate migration, potentially providing additional economic benefits in developing countries.

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