Lost Highway: Segmented and Precarious Employment of Migrants in the Green Transition

The need to achieve a safe and just ecological transition is a key target of European policy makers. Green jobs are often presented as key levers to achieve this objective, as they enable the creation of new employment opportunities across a wide spectrum of occupations, including low skill ones. In this paper we investigate if and how these opportunities are seized by one of the most vulnerable segment of the labor force, namely migrants. By relying on detailed administrative data covering more that 12 million contract activations in the Emilia-Romagna Region (Italy) we document that, after controlling for potential confounders, migrants are less likely than natives to find employment in green jobs. Moreover, when they do, they have higher chances to be hired with either a fixed-term or an agency contract. Heterogeneity analysis across industries and occupations reveals that such precarious employment patterns are driven primarily by firm attempts to reduce green costs. These results are rationalized through the lenses of institutional segmentation theory. Related policy implications are discussed.