The cost of job loss in carbon-intensive sectors: Evidence from Germany:
The green transformation of the economy is expected to lead to a sharp reduction in employment in carbon-intensive industries. For designing policies to support displaced workers, it is crucial to better understand the cost of job loss, whether there are specific effects of being displaced from a ca...
Gespeichert in:
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| Weitere Verfasser: | , |
| Format: | Elektronisch E-Book |
| Sprache: | English |
| Veröffentlicht: |
Paris
OECD Publishing
2023
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| Schriftenreihe: | OECD Economics Department Working Papers
no.1774 |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Zusammenfassung: | The green transformation of the economy is expected to lead to a sharp reduction in employment in carbon-intensive industries. For designing policies to support displaced workers, it is crucial to better understand the cost of job loss, whether there are specific effects of being displaced from a carbon-intensive sector and which workers are most at risk. By using German administrative labour market data and focusing on mass layoff events, we estimate the cost of involuntary job displacement for workers in high carbon-intensity sectors and compare it with the displacement costs for workers in low carbon-intensity sectors. We find that displaced workers from high carbon-intensity sectors have, on average, higher earnings losses and face stronger difficulties in finding a new job and recovering their earnings. Our results indicate that this is mainly due to human capital specificity, the regional clustering of carbon-intensive activities and higher wage premia in carbon-intensive firms. Workers displaced in high carbon-intensity sectors are older, face higher local labour market concentration and have fewer outside options for finding jobs with similar skill requirements. They have a higher probability to switch occupations and sectors, move to occupations that are more different in terms of skill requirements compared to the pre-displacement job, and are more likely to change workplace districts after displacement. Women, older workers and those with vocational degrees as well as workers in East Germany, experience particularly high costs in case they are displaced from high carbon-intensity sectors. |
| Beschreibung: | 1 Online-Ressource (47 p.) 21 x 28cm. |
| DOI: | 10.1787/6f636d3b-en |
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| indexdate | 2024-11-26T14:55:34Z |
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| spelling | Barreto, Cesar VerfasserIn aut The cost of job loss in carbon-intensive sectors: Evidence from Germany Cesar, Barreto, Robert, Grundke and Zeev, Krill Paris OECD Publishing 2023 1 Online-Ressource (47 p.) 21 x 28cm. Text txt rdacontent Computermedien c rdamedia Online-Ressource cr rdacarrier OECD Economics Department Working Papers no.1774 The green transformation of the economy is expected to lead to a sharp reduction in employment in carbon-intensive industries. For designing policies to support displaced workers, it is crucial to better understand the cost of job loss, whether there are specific effects of being displaced from a carbon-intensive sector and which workers are most at risk. By using German administrative labour market data and focusing on mass layoff events, we estimate the cost of involuntary job displacement for workers in high carbon-intensity sectors and compare it with the displacement costs for workers in low carbon-intensity sectors. We find that displaced workers from high carbon-intensity sectors have, on average, higher earnings losses and face stronger difficulties in finding a new job and recovering their earnings. Our results indicate that this is mainly due to human capital specificity, the regional clustering of carbon-intensive activities and higher wage premia in carbon-intensive firms. Workers displaced in high carbon-intensity sectors are older, face higher local labour market concentration and have fewer outside options for finding jobs with similar skill requirements. They have a higher probability to switch occupations and sectors, move to occupations that are more different in terms of skill requirements compared to the pre-displacement job, and are more likely to change workplace districts after displacement. Women, older workers and those with vocational degrees as well as workers in East Germany, experience particularly high costs in case they are displaced from high carbon-intensity sectors. Economics Employment Germany Grundke, Robert MitwirkendeR ctb Krill, Zeev MitwirkendeR ctb FWS01 ZDB-13-SOC FWS_PDA_SOC https://doi.org/10.1787/6f636d3b-en Volltext |
| spellingShingle | Barreto, Cesar The cost of job loss in carbon-intensive sectors: Evidence from Germany Economics Employment Germany |
| title | The cost of job loss in carbon-intensive sectors: Evidence from Germany |
| title_auth | The cost of job loss in carbon-intensive sectors: Evidence from Germany |
| title_exact_search | The cost of job loss in carbon-intensive sectors: Evidence from Germany |
| title_full | The cost of job loss in carbon-intensive sectors: Evidence from Germany Cesar, Barreto, Robert, Grundke and Zeev, Krill |
| title_fullStr | The cost of job loss in carbon-intensive sectors: Evidence from Germany Cesar, Barreto, Robert, Grundke and Zeev, Krill |
| title_full_unstemmed | The cost of job loss in carbon-intensive sectors: Evidence from Germany Cesar, Barreto, Robert, Grundke and Zeev, Krill |
| title_short | The cost of job loss in carbon-intensive sectors: Evidence from Germany |
| title_sort | cost of job loss in carbon intensive sectors evidence from germany |
| topic | Economics Employment Germany |
| topic_facet | Economics Employment Germany |
| url | https://doi.org/10.1787/6f636d3b-en |
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