IDEAS home Printed from https://ideas.repec.org/p/rba/rbardp/rdp2024-09.html
   My bibliography  Save this paper

The 'Clean Energy Transition' and the Cost of Job Displacement in Energy-intensive Industries

Author

Listed:
  • César Barreto

    (OECD)

  • Jonas Fluchtmann

    (OECD)

  • Alexander Hijzen

    (OECD)

  • Stefano Lombardi

    (VATT)

  • Patrick Bennett

    (University of Liverpool)

  • Antoine Bertheau

    (NHH)

  • Winnie Chan

    (Statistics Canada)

  • Andrei Gorshkov

    (IFAU)

  • Jonathan Hambur

    (Reserve Bank of Australia)

  • Nick Johnstone

    (IEA)

  • Benjamin Lochner

    (FAU)

  • Jordy Meekes

    (Leiden University)

  • Tahsin Mehdi

    (Statistics Canada)

  • Balázs Muraközy

    (University of Liverpool)

  • Gulnara Nolan

    (Reserve Bank of Australia)

  • Kjell Salvanes

    (NHH)

  • Oskar Nordström Skans

    (Uppsala University)

  • Rune Vejlin

    (Aarhus University)

Abstract

This paper provides a comprehensive analysis of the costs of job displacement in energy-intensive industries in selected OECD countries. Based on harmonised linked employer-employee data from 14 OECD countries, we estimate the effect of job displacement in three energy-intensive industries, namely energy supply, heavy manufacturing and transport, compared to other industries. We find that workers displaced from energy supply and heavy manufacturing, experience larger earnings losses compared with workers in non-energy-intensive and transport sectors. Larger earnings losses mainly result from weaker re-employment outcomes in terms of wages and job instability but also challenges with finding another job. They reflect significant differences in the composition of workers and firms in energy supply and heavy manufacturing and the rest of the economy. Displaced workers in these sectors tend to be older, are less skilled and more likely to be previously employed in high-wage firms.

Suggested Citation

  • César Barreto & Jonas Fluchtmann & Alexander Hijzen & Stefano Lombardi & Patrick Bennett & Antoine Bertheau & Winnie Chan & Andrei Gorshkov & Jonathan Hambur & Nick Johnstone & Benjamin Lochner & Jor, 2024. "The 'Clean Energy Transition' and the Cost of Job Displacement in Energy-intensive Industries," RBA Research Discussion Papers rdp2024-09, Reserve Bank of Australia.
    • Handle: RePEc:rba:rbardp:rdp2024-09
    DOI: 10.47688/rdp2024-09
    as

    Download full text from publisher

    File URL: https://www.rba.gov.au/publications/rdp/2024/pdf/rdp2024-09.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.47688/rdp2024-09?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    dismissal; linked employer-employee data; just transition;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rba:rbardp:rdp2024-09. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Paula Drew (email available below). General contact details of provider: https://edirc.repec.org/data/rbagvau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.