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Climate policies and skill-biased employment dynamics: evidence from EU countries

Author

Listed:
  • Giovanni Marin

    (Università degli Studi di Urbino 'Carlo Bo')

  • Francesco Vona

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

The political acceptability of climate policies is undermined by job-killing arguments, especially for the least-skilled workers. However, evidence of the distributional impacts for different workers remains scant. We examine the associations between climate policies, proxied by energy prices, and workforce skills for 14 European countries and 15 industrial sectors over the period 1995–2011. Using a shift-share instrumental variable estimator and controlling for the influence of automation and globalization, we find that climate policies have been skill biased against manual workers and have favoured technicians. The long-term change in energy prices accounted for between 9.2% and 17.5% (resp. 4.2% and 8.0%) of the increase (resp. decrease) in the share of technicians (resp. manual workers).

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  • Giovanni Marin & Francesco Vona, 2019. "Climate policies and skill-biased employment dynamics: evidence from EU countries," Post-Print hal-03403628, HAL.
    • Handle: RePEc:hal:journl:hal-03403628
    DOI: 10.1016/j.jeem.2019.102253
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03403628
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    More about this item

    Keywords

    Climate policies; Workforce skills; Employment impact; Cluster analysis; Energy prices; Shift-share instruments;
    All these keywords.

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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