Climate Policies and Skill-Biased Employment Dynamics: Evidence from EU countries | Francesco Vona
Francesco will be presenting his paper: Climate Policies and Skill-Biased Employment Dynamics: Evidence from EU countries
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 workforce skills for 14 European countries and 15 industrial sectors over the period of 1995-2011. To identify the effect of energy prices on employment, we use a standard Bartik instrument and control for exposure to multiple shocks, namely globalization and automation, in a flexible way. We find that, while energy prices have a very small negative effect on total employment, such effect is biased against manual workers and have favoured technicians and managers. We also show that other policies are irrelevant for employment dynamics and that green technologies can be a source of job creation offsetting losses due to energy price increases.