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Climate policy uncertainty and labor demand in high-carbon industries

Author

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  • Zheng, Pengju
  • Ning, Zihao
  • Wu, Qingyang
  • Li, WeiWei

Abstract

Using data from Chinese high-carbon companies, this paper documents a negative association between climate policy uncertainty and corporate labor demand. This finding remains valid after implementing a series of robust and endogeneity tests. The research results also indicate for firms in poorer economic situation regions, firms with fewer government subsidies, more high tech employees and lower profitability, the negative effect of climate policy uncertainty on corporate labor demand is greater. The mechanism indicates that climate policy uncertainty affects corporate labor demand through green investment and labor outsourcing.

Suggested Citation

  • Zheng, Pengju & Ning, Zihao & Wu, Qingyang & Li, WeiWei, 2025. "Climate policy uncertainty and labor demand in high-carbon industries," Finance Research Letters, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:finlet:v:84:y:2025:i:c:s1544612325008475
    DOI: 10.1016/j.frl.2025.107588
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    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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