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In this paper we examine the impacts of toxic chemical releases on labor productivity. The hypothesis is that exposure to releases results in chronic or acute illnesses, which increases number of work days lost. To test the hypothesis we combine data from the National Health Interview Survey with data from US Environmental Protection Agency’s Toxic Release Inventory, using an instrumental variable approach to control for endogeneity of subjective binary health status. We find that the survey respondents are significantly more likely to have increased work days lost as their exposure to toxic releases increases and that work days lost increase at an increasing rate with diminished health status. [ABSTRACT FROM AUTHOR]