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

Authors
  • Marin, Giovanni
  • Vona, Francesco
Publication Date
Nov 01, 2019
Source
SPIRE @ SciencesPo
Keywords
Language
English
License
Green
External links

Abstract

The political acceptability of climate policies is undermined by job-killing arguments, especially for the least-skilled workers. However, evidence of the 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 1995–2011. Using a shift-share instrumental variable estimator and controlling for the influence of automation and globalization, we find that climate policies have been skill biased against manual workers and have favoured technicians. The long-term change in energy prices accounted for between 9.2% and 17.5% (resp. 4.2% and 8.0%) of the increase (resp. decrease) in the share of technicians (resp. manual workers).

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