This paper uses a panel of German individuals and highly granular pollution data to test if air pollution affects adults’ well-being indirectly through the health of their children. Results show that ozone decreases the well-being of individuals with children while not affecting persons without kids. We confirm the same effect for fine particulate matter and sulfur dioxide. Concerning the mechanism, we find that above-median earners drive this effect and that ozone causes losses in workdays to care for a sick child, providing evidence on the children’s health channel to adults’ welfare losses.
Keywords: Air pollution, ozone, well-being, subjective health, children’s health, parental in- vestments