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

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  • Giovanni Marin

    (Università degli Studi di Urbino Carlo Bo)

  • Francesco Vona

    (Observatoire français des conjonctures économiques)

Abstract

The political acceptability of climate policies is undermined by job-killing arguments, especially for the least-skilled workers. However, evidence for distributional impacts for different workers remains scant. We examine the associations between climate policies, proxied by energy prices and a stringency index, and workforce skills for 14 European countries and 15 industrial sectors over the period of 1995-2011. We find that, while the long-term decline in employment in most carbon-intensive sectors is unrelated to policy stringency, climate policies have been skill biased against manual workers and have favoured technicians and professionals. This skill bias is confirmed using a shift-share instrumental variable estimator

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  • Giovanni Marin & Francesco Vona, 2018. "Climate policies and Skill-biased employment dynamics : evidence from EU countries," Sciences Po publications 23, Sciences Po.
    • Handle: RePEc:spo:wpmain:info:hdl:2441/5ahh4t5kfl8nprei89ignlk5nl
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    More about this item

    Keywords

    Climate policies; Workforce skills; Cluster analysis; Multiple exposure to structural shocks;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • 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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