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Job Displacement Costs of Phasing Out Coal

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Abstract

The reduction of carbon emissions will require a rapid phasing out of coal and the displacement of millions of coal miners. How much could this energy transition cost mining workers? We use the dramatic collapse of the UK coal industry to estimate the long-term impact on displaced miners. We find evidence of substantial losses: wages fall by 40% and earnings fall by 80% to 90% one year after job loss. The losses are persistent and remain significantly depressed fifteen years later, amounting to present discounted value earnings losses of between four and six times the miners pre-displacement earnings. (JEL J30, J63, J64, O4)

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  • Juan-Pablo Rud & Michael Simmons & Gerhard Toews & Fernando Aragon, 2022. "Job Displacement Costs of Phasing Out Coal," Discussion Papers dp22-07, Department of Economics, Simon Fraser University.
    • Handle: RePEc:sfu:sfudps:dp22-07
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    More about this item

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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