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Beyond traditional wage premium. An analysis of wage greenium in Latin America

Author

Listed:
  • Cerimelo Manuela
  • De la Vega Pablo
  • Porto Natalia

Abstract

This paper estimates wage differentials between green and non-green jobs (wage greenium) in nine major Latin American countries (Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Uruguay), which account for 81% of the region’s GDP.We contribute to the recent literature highlighting a positive wage gap for those working in green jobs in developed countries and explore possible heterogeneities that may arise within countries in the same region. A positive wage gap for green jobs may be a virtuous market feature, as it means that in the future workers might be encouraged to switch to greener occupations. To do so, we define green jobs as those occupations with high greenness scores using the occupational approach as in Vona et al. (2018), Vona (2021) and Porto et al. (2022). Our results suggest that the wage greenium for the period 2012-2019 was, on average, 23% in Latin America, ranging from 15% to 30%. Moreover, this wage gap has remained relatively stable over the years.

Suggested Citation

  • Cerimelo Manuela & De la Vega Pablo & Porto Natalia, 2023. "Beyond traditional wage premium. An analysis of wage greenium in Latin America," Asociación Argentina de Economía Política: Working Papers 4633, Asociación Argentina de Economía Política.
    • Handle: RePEc:aep:anales:4633
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    References listed on IDEAS

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    1. Cristian Bonavida Foschiatti & Leonardo Gasparini, 2020. "Asimetrías en la Viabilidad del Trabajo Remoto," Asociación Argentina de Economía Política: Working Papers 4349, Asociación Argentina de Economía Política.
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    1. de la Vega, Pablo & Porto, Natalia & Cerimelo, Manuela, 2024. "Going green: estimating the potential of green jobs in Argentina," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 58, pages 1-1.

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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