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The Local Job Multipliers of Green Industrialization

Author

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  • Frattini, Federico Fabio
  • Vona, Francesco
  • Bontadini, Filippo
  • Colantone, Italo

Abstract

What are the job multipliers of the green industrialization? We tackle this question within EU regions over the period 2003-2017, building a novel measure of green manufacturing penetration that combines green production and regional employment data. We estimate local job multipliers of green penetration in a long-difference model, using a shift-share instrument that exploits plausibly exogenous changes in non-EU green innovation. We find that a 3-years change in green penetration per worker increases the employment-to-active population ratio by 0.11 pp. The effect is: persistent both in manufacturing and outside manufacturing; halved by agglomeration effects that increase the labour market tightness; stronger for workers with high and low-education; and present also in regions specialized in polluting industries. When focusing on large shocks in a staggered DiD design, we find ten times larger effects, particularly in earlier periods.

Suggested Citation

  • Frattini, Federico Fabio & Vona, Francesco & Bontadini, Filippo & Colantone, Italo, 2025. "The Local Job Multipliers of Green Industrialization," FEEM Working Papers 358792, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemwp:358792
    DOI: 10.22004/ag.econ.358792
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    Climate Change; Environmental Economics and Policy; Industrial Organization; Labor and Human Capital;
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