{"id":1036,"date":"2024-12-23T15:06:29","date_gmt":"2024-12-23T15:06:29","guid":{"rendered":"https:\/\/naujienosversle.lt\/index.php\/2024\/12\/23\/labour-market-transitions-in-a-greener-economy\/"},"modified":"2024-12-23T15:06:29","modified_gmt":"2024-12-23T15:06:29","slug":"labour-market-transitions-in-a-greener-economy","status":"publish","type":"post","link":"https:\/\/naujienosversle.lt\/index.php\/2024\/12\/23\/labour-market-transitions-in-a-greener-economy\/","title":{"rendered":"Labour market transitions in a greener economy"},"content":{"rendered":"


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The transition to a greener economy is a necessity (Kanzig 2024). It will require significant shifts in the way goods and energy are produced and consumed (European Parliament 2024) as well as the reallocation of production factors, including workers. Although the overall effects in terms of aggregate economic output and employment could be relatively small, the effects are likely to be concentrated \u2013 by economic activity, geographical area, and workers\u2019 characteristics \u2013 with a risk of amplifying inequalities in outcomes and opportunities. In particular, the transition is expected to induce a contraction of jobs in high-polluting activities (often labelled \u2018brown\u2019 jobs) and an expansion of so-called \u2018green\u2019 jobs, or those involving green activities according to the O*NET classification (Valero et al. 2021, Vona et al. 2018, Vandeplas et al. 2022, Causa et al. 2024, Causa and Phillips 2024, O*NET\u00a0 2010). A just transition in the labour market should minimise costs for individuals and communities. Achieving this will require policies to improve the allocation of workers and support the re-employment of dismissed ones, especially towards greener occupations, while managing and minimising the scarring effects associated with job losses in polluting industries. In addition, given the marked differences in industrial specialisation across regions, policy interventions should be place-based.<\/p>\n

Workers in high-polluting occupations tend to have lower educational attainment (Causa et al. 2024). In cases of job dismissal, they often experience larger earnings losses compared with workers in non-energy-intensive and transport sectors (Barreto et al. 2024). Comprehensive labour market policies and effective educational systems and upskilling programmes can help mitigate such losses and the risk of scarring, while also accelerating the green transition. Recent empirical work on a large sample of EU countries (Causa et al. 2024) finds that the estimated risk of long-term unemployment for individuals displaced from high-polluting jobs is lower, after accounting for country-specific effects and individual characteristics, in countries where higher shares of the population have a tertiary education and more adults participate in training (Table 1, Panel A). To facilitate the matching of workers to new jobs, training and active labour market programmes should be complemented with balanced and adequate income support and unemployment benefits, which are associated with a higher probability of transitioning from unemployment to employment, particularly among the long-term unemployed (Table 1, Panel B).<\/p>\n

In addition, policies fostering access to quality education and training can help fulfil the increasing demand for workers in green jobs (as defined in Causa et al. 2024) since, net of other observable characteristics, the odds of getting a green job are twice as high for workers with high levels of education, especially in STEM fields (Figure 1). In fact, the transitions from unemployment to green jobs are more likely in countries with higher rates of adult proficiency in literacy and numeracy and a higher share of workers with formal training (Table 1, Panel A).<\/p>\n

Figure 1<\/strong> Transitions from unemployment and inactivity to employment in green jobs<\/p>\n

A) Transitions from unemployment to green jobs<\/p>\n

B) Transitions from study-related inactivity to green jobs<\/p>\n

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