
handle: 10419/322501 , 10419/322172
What are the job multipliers of the green industrialization? We tackle this question within EU regions over the period 2003-2017, building a novel measure of green manufacturing penetration that combines green production and regional employment data. We estimate local job multipliers of green penetration in a long-difference model, using a shift-share instrument that exploits plausibly exogenous changes in non-EU green innovation. We find that a 3-years change in green penetration per worker increases the employment-to-active population ratio by 0.11 pp. The effect is: persistent both in manufacturing and outside manufacturing; halved by agglomeration effects that increase the labour market tightness; stronger for workers with high and low-education; and present also in regions specialized in polluting industries. When focusing on large shocks in a staggered DiD design, we find ten times larger effects, particularly in earlier periods.
Difference-in-differences, local job multipliers, green industrialisation, ddc:330, J21, Local job multipliers, O14, R11, Green industrialisation, Employment effects of the green transition, shift-share IV design, Shift-share IV design, difference-in-differences, employment effects of the green transition
Difference-in-differences, local job multipliers, green industrialisation, ddc:330, J21, Local job multipliers, O14, R11, Green industrialisation, Employment effects of the green transition, shift-share IV design, Shift-share IV design, difference-in-differences, employment effects of the green transition
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