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The role of innovation and agglomeration for employment growth in the environmental sector

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  • Horbach, Jens
  • Janser, Markus

Abstract

The environmental sector is supposed to yield a dual benefit: its goods and services are in-tended to tackle environmental challenges and its establishments should create new jobs. However, it is still unclear in empirical terms whether that really is the case. This paper investigates to what extent employment growth in establishments with green products and services is higher compared to other establishments. Furthermore, the main factors determining labor demand in this field are analyzed. We use linked employment and regional data for Germany. The descriptive results show that the environmental sector is characterized by disproportionately high employment growth. The application of a generalized linear mixed model reveals that especially innovation and industry agglomeration foster employment growth in establishments in the environmental sector. Establishments without green products and services show a smaller increase in employment, even if they are also innovative.

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  • Horbach, Jens & Janser, Markus, 2016. "The role of innovation and agglomeration for employment growth in the environmental sector," VfS Annual Conference 2016 (Augsburg): Demographic Change 145500, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc16:145500
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    2. Horbach, Jens & Jacob, Jojo, 2017. "The relevance of personal characteristics and gender diversity for (eco)-innovation activities at the firm-level : Results from a linked employer-employee database in Germany," IAB-Discussion Paper 201711, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. D’Orazio, Paola & Valente, Marco, 2019. "The role of finance in environmental innovation diffusion: An evolutionary modeling approach," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 417-439.
    4. Fernández, Sara & Torrecillas, Celia & Díaz, Guillermo Arenas, 2024. "Does eco-innovation stimulate employment? The case of Spanish manufacturing firms," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 571-585.
    5. Jens Horbach & Jojo Jacob, 2018. "The relevance of personal characteristics and gender diversity for (eco‐)innovation activities at the firm‐level: Results from a linked employer–employee database in Germany," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 924-934, November.
    6. Patrick Lehnert & Harald Pfeifer, 2024. "Environmental Awareness and Occupational Choices of Adolescents," Economics of Education Working Paper Series 0231, University of Zurich, Department of Business Administration (IBW).
    7. Thomas Neumann, 2023. "Are greener start-ups of superior quality? The impact of environmental orientation on innovativeness, growth orientation, and international orientation," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-24, December.
    8. Möller, Joachim, 2015. "Verheißung oder Bedrohung? : die Arbeitsmarktwirkungen einer vierten industriellen Revolution," IAB-Discussion Paper 201518, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Peng Bin & Xiaolan Chen & Andrea Fracasso & Chiara Tomasi, 2020. "Firm employment growth in China: The role of marketization and regional economic factors," Growth and Change, Wiley Blackwell, vol. 51(1), pages 402-439, March.
    10. Bellmann, Lutz & Koch, Theresa, 2019. "Ökologische Nachhaltigkeit in deutschen Unternehmen: Empirische Ergebnisse auf Basis des IAB-Betriebspanels 2018," IAB-Forschungsbericht 201908, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Maria Manuel Sá & Carla Oliveira-Silva & Manuel Paulo Cunha & Artur Gonçalves & Jesús Diez & Ines Méndez-Tovar & Eva Curto Izquierdo, 2022. "Integration of the Circular Economy Paradigm in Companies from the Northwest of the Iberian Peninsula," Sustainability, MDPI, vol. 14(13), pages 1-22, June.
    12. Cecere, Grazia & Mazzanti, Massimiliano, 2017. "Green jobs and eco-innovations in European SMEs," Resource and Energy Economics, Elsevier, vol. 49(C), pages 86-98.
    13. Capasso, Marco & Hansen, Teis & Heiberg, Jonas & Klitkou, Antje & Steen, Markus, 2019. "Green growth – A synthesis of scientific findings," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 390-402.
    14. Aurore Darmandieu & Concepción Garcés‐Ayerbe & Antoine Renucci & Pilar Rivera‐Torres, 2022. "How does it pay to be circular in production processes? Eco‐innovativeness and green jobs as moderators of a cost‐efficiency advantage in European small and medium enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1184-1203, March.
    15. Dietrich, Hans, 2015. "Jugendarbeitslosigkeit aus einer europäischen Perspektive : theoretische Ansätze, empirische Konzepte und ausgewählte Befunde," IAB-Discussion Paper 201524, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    16. Janser, Markus, 2018. "The greening of jobs in Germany : First evidence from a text mining based index and employment register data," IAB-Discussion Paper 201814, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    17. Luigi Aldieri & Maxim Kotsemir & Concetto Paolo Vinci, 2019. "The impact of environmental innovations on job-creation process: an empirical investigation for Russian regions," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(2), pages 285-306, April.

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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