TY  - RPRT
        AU  - Bogaard, Mariët
AU  - Künn, Steffen
AU  - Palacios, Juan
AU  - Pestel, Nico
        TI  - Polluted Job Search: The Impact of Poor Air Quality on Reservation Wages
        PY  - 2024/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17344
        UR  - https://www.iza.org/publications/dp17344
        AB  - This paper investigates the impact of air pollution on reservation wages. We use rich survey data on unemployed job seekers in Germany and exploit variation in individual exposure to fine particulate matter (PM10) based on the quasi-random allocation of interview slots to individuals. Our results show that an increase in PM10 by one standard deviation (corresponding to 12 μg/m3) reduces the reservation wage by approximately 1.2%. We further provide evidence that PM10 pollution decreases job seekers' search effort, risk tolerance and patience, which serve as potential mechanisms through which PM10 exposure negatively affects the reservation wage of unemployed job seekers.
        KW  - reservation wage
KW  - air pollution
KW  - job search
        ER  -