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Energy transitions and labor market patterns in the U.S. coal industry

Author

Listed:
  • Michieka, Nyakundi M.
  • Graziano, Marcello
  • Musso, Marta
  • Fouquet, Roger

Abstract

The U.S. coal industry is in the midst of a transition. Changes in regulation and technological innovation from other fossils and renewables have affected its competitiveness. These could have significant impacts on the labor market where jobs could be lost. In this study, we investigate how changes in employment in the coal industry affect wages in 20 industries in 10 U.S. coal producing states. We assess how these transitions impact welfare programs, since coal producing regions are associated with higher poverty levels. Results show that in the long run, migration of coal workers decreased wages in the construction, manufacturing sectors. Point estimates reveal that an increase in separations of coal workers increase Supplemental Nutrition Assistance Program (SNAP) caseloads. In states where coal mining has a smaller contribution to GDP, an increase in coal employment increases SNAP caseloads.

Suggested Citation

  • Michieka, Nyakundi M. & Graziano, Marcello & Musso, Marta & Fouquet, Roger, 2022. "Energy transitions and labor market patterns in the U.S. coal industry," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 501-514.
    • Handle: RePEc:eee:streco:v:63:y:2022:i:c:p:501-514
    DOI: 10.1016/j.strueco.2022.07.005
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    1. Guo, Jinling & Gao, Junlian & Yan, Kejia & Zhang, Bo, 2023. "Unintended mitigation benefits of China's coal de-capacity policies on methane emissions," Energy Policy, Elsevier, vol. 181(C).

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    More about this item

    Keywords

    Labor market dynamics;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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