While many studies in the medical literature documented causal relationships between air pollution and negative health outcomes immediately following exposure, much less is known about the long run health consequences of pollution exposure. Using the 1997 Indonesian forest fires as a natural experiment, we estimate the long term effects of air pollution on health outcomes. We take advantage of the longitudinal nature of the Indonesia Family Life Survey (IFLS), which collects detailed individual data on a multitude of health outcomes, in both 1997 and 2007. We find significant negative effects of pollution, which persist in the long run. Men and the elderly are impacted the most, while children seem to recover almost completely from these early shocks. For the entire population, an extra standard deviation in the pollution level increases the likelihood of a poor general health status by almost 3%.

We use a natural experiment in Indonesia to study the medium-and long-term effects of air pollution on labor supply. We find that exposure to air pollution reduces hours worked and while the medium-term effects are larger in magnitude, some effects do persist in the long term. More interestingly, we are able to provide some insight regarding the underlying channels that contribute to the reduced labor supply. Own health seems to be the only responsible channel in the long term, while in the medium term, a different channel based on dependent caregiving is the most important. JEL Classification: J22, Q53

We study the long-term consequences of air pollution on mental health, using a natural experiment in Indonesia. We find that exposure to severe air pollution has significant and persistent consequences on mental health. An extra standard deviation in the pollution index raises the probability of clinical depression measured 10 years past exposure by almost 1%. Women in particular seem to be more affected, but some effects persist for men as well. Pollution exposure increases the likelihood of clinical depression for women and also the severity of depressive symptoms for both sexes. It is not clear if men are more resistant to pollution or they simply recover faster from it. Education, perceived economic status, and marriage seem to be the best mitigators for these negative effects.

Hypertension is a rapidly growing problem in developing countries. At the same time, due to its asymptomatic nature, the afflicted population is largely unaware of being hypertensive. Due to a lack of resources, routine medical exams are very rare in developing countries and many sick individuals remain undiagnosed. Using a large sample of hypertensive individuals from Indonesia, we show the importance of being diagnosed. Diagnosed individuals exhibit lower systolic and diastolic blood pressure, and overall lower probability of remaining hypertensive than undiagnosed individuals. We also show the main channels through which this is achieved: taking medication, routinely monitoring one's blood pressure, and engaging in moderate physical activities. We also point to channels through which additional benefits could be realized, but that are currently ineffective: dietary changes and maintaining a healthy body weight. Combined, these results point to the importance of directing public policy towards addressing the under-diagnosis problem and educating the public of the benefits of adopting a healthy lifestyle .

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