Pollution and Human Capital Migration: Evidence From Corporate Executives

49 Pages Posted: 30 Jul 2018 Last revised: 17 Dec 2019

See all articles by Ross Levine

Ross Levine

University of California, Berkeley - Haas School of Business; National Bureau of Economic Research (NBER)

Chen Lin

The University of Hong Kong - Faculty of Business and Economics

Zigan Wang

The University of Hong Kong - School of Economics and Finance; Columbia University

Date Written: December 10, 2019

Abstract

We study the impact of pollution on the migration of high human capital employees. We link data on the opening of toxic-emitting plants with the career paths of executives at S&P 1500 firms. We discover that toxic-emitting plant openings increase executive departures from neighboring firms with adverse effects on stock prices. The results: are larger when polluting plants and firms are geographically closer, hold only for executives physically-based at treated firms, hold only for the opening of polluting plants, do not reflect other local factors or prior stock price performance, and are larger among executives with more general human capital.

Keywords: Pollution Costs, Spatial Labor Mobility, Executive Turnover

JEL Classification: G3, Q51, Q52, Q53, J61, J63, R32

Suggested Citation

Levine, Ross Eric and Lin, Chen and Wang, Zigan, Pollution and Human Capital Migration: Evidence From Corporate Executives (December 10, 2019). 31st Australasian Finance and Banking Conference 2018. Available at SSRN: https://ssrn.com/abstract=3222243

Ross Eric Levine

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Chen Lin

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

Zigan Wang (Contact Author)

The University of Hong Kong - School of Economics and Finance ( email )

8th Floor Kennedy Town Centre
23 Belcher's Street
Kennedy Town
Hong Kong

Columbia University ( email )

3022 Broadway
New York, NY 10027
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
2
Abstract Views
28
PlumX Metrics