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

César Barreto, Jonas Fluchtmann, Alexander Hijzen, Stefano Lombardi, Patrick Bennett, Antoine Bertheau, Winnie Chan, Andrei Gorshkov, Jonathan Hambur, Nick Johnstone, Benjamin Lochner, Jordy Meekes, Tahsin Mehdi, Balázs Muraközy, Gulnara Nolan, Kjell Salvanes, Oskar Nordström Skans and Rune Vejlin
Additional contact information
César Barreto: OECD
Jonas Fluchtmann: OECD
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
Balázs Muraközy: University of Liverpool
Gulnara Nolan: Reserve Bank of Australia
Kjell Salvanes: NHH
Oskar Nordström Skans: Uppsala University

RBA Research Discussion Papers from Reserve Bank of Australia

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.

Keywords: dismissal; linked employer-employee data; just transition (search for similar items in EconPapers)
JEL-codes: J31 J63 Q43 (search for similar items in EconPapers)
Date: 2024-12
New Economics Papers: this item is included in nep-ene, nep-lma and nep-tid
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Working Paper: The “clean energy transition” and the cost of job displacement in energy-intensive industries (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:rba:rbardp:rdp2024-09

DOI: 10.47688/rdp2024-09

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