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Measures, Drivers and Effects of Green Employment: Evidence from US Local Labor Markets, 2006-2014

Listed author(s):
  • Francesco Vona

    ()

    (Observatoire Francais des Conjonctures Economiques (OFCE), France; Universite Cote d'Azur, SKEMA, CNRS, GREDEG, France.)

  • Giovanni Marin

    ()

    (Department of Economics, Society and Politics, University of Urbino `Carlo Bo', Italy.)

  • Davide Consoli

    ()

    (ZINGENIO[CSIC-UPV], Valencia, Spain.)

This paper explores the nature and the key empirical regularities of green employment in US local labor markets between 2006 and 2014. The main methodological novelty consists of a new measure of green employment based on the task content of occupations. Descriptive analysis reveals that: 1. the share of green employment is between 2 and 3 percent, with a strongly pro-cyclical trend; 2. the green wage premium is 4 percent; 3. green jobs are more geographically concentrated than similar non-green jobs; and 4. the top green areas are mostly high-tech. As regards to the drivers, direct changes in environmental regulation are a secondary force in explaining the 8-years growth of green jobs compared to the local amount of green subsidies within the American Recovery and Reinvestment Act (ARRA), the endowment of green knowledge and the resilience to the great recession. Assessing the impact of moving to greener activities, we find that one additional green job is associated with 4.2 (2.2 in the crisis period) new local jobs in non-tradable activities, and that this effect can be mostly ascribed to the green ARRA package.

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Paper provided by SPRU - Science and Technology Policy Research, University of Sussex in its series SPRU Working Paper Series with number 2017-13.

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Date of creation: Jul 2017
Handle: RePEc:sru:ssewps:2017-13
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