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How are green jobs created? A decomposition analysis

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  • Maczulskij, Terhi

Abstract

This study provides novel evidence on the ‘greening’ of occupational structure using comprehensive employment data from Finland. The results of the decomposition analysis reveal that the increase in environmentally friendly green jobs and the concurrent decrease in polluting brown jobs are primarily explained by individual workers changing their occupations. However, the results also show that younger cohorts and previously unemployed individuals are less likely to enter green jobs, suggesting a role for both education and labor market policies in improving the ability of new entrants to take on green occupations. (JEL: J62, Q50)

Suggested Citation

  • Maczulskij, Terhi, 2024. "How are green jobs created? A decomposition analysis," Economics Letters, Elsevier, vol. 244(C).
    • Handle: RePEc:eee:ecolet:v:244:y:2024:i:c:s0165176524004348
    DOI: 10.1016/j.econlet.2024.111950
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    References listed on IDEAS

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    1. Consoli, Davide & Marin, Giovanni & Marzucchi, Alberto & Vona, Francesco, 2016. "Do green jobs differ from non-green jobs in terms of skills and human capital?," Research Policy, Elsevier, vol. 45(5), pages 1046-1060.
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    3. Terhi Maczulskij, 2024. "Occupational Mobility of Routine Workers," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 86(5), pages 1198-1229, October.
    4. Francesco Vona & Giovanni Marin & Davide Consoli, 2019. "Measures, drivers and effects of green employment: evidence from US local labor markets, 2006–2014," Journal of Economic Geography, Oxford University Press, vol. 19(5), pages 1021-1048.
    5. Francesco Vona & Giovanni Marin & Davide Consoli & David Popp, 2018. "Environmental Regulation and Green Skills: An Empirical Exploration," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(4), pages 713-753.
    6. E. Mark Curtis & Ioana Marinescu, 2023. "Green Energy Jobs in the United States: What Are They, and Where Are They?," Environmental and Energy Policy and the Economy, University of Chicago Press, vol. 4(1), pages 202-237.
    7. E. Mark Curtis & Layla O’Kane & R. Jisung Park, 2024. "Workers and the Green-Energy Transition: Evidence from 300 Million Job Transitions," Environmental and Energy Policy and the Economy, University of Chicago Press, vol. 5(1), pages 127-161.
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    9. Katharina Bergant & Rui Mano & Mr. Ippei Shibata, 2022. "From Polluting to Green Jobs: A Seamless Transition in the U.S.?," IMF Working Papers 2022/129, International Monetary Fund.
    10. Bluedorn, John & Hansen, Niels-Jakob & Noureldin, Diaa & Shibata, Ippei & Tavares, Marina M., 2023. "Transitioning to a greener labor market: Cross-country evidence from microdata," Energy Economics, Elsevier, vol. 126(C).
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Brown jobs; Decomposition; Gray jobs; Green jobs; Green transition; Occupational restructuring;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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