The Local Job Multipliers of Green Industrialization

Federico Fabio Frattini, Francesco Vona, Filippo Bontadini and Italo Colantone

No 358792, FEEM Working Papers from Fondazione Eni Enrico Mattei (FEEM)

Abstract: 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.

Keywords: Climate Change; Environmental Economics and Policy; Industrial Organization; Labor and Human Capital (search for similar items in EconPapers)
Pages: 81
Date: 2025-06-04
New Economics Papers: this item is included in nep-tid
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/358792/files/NDL2025-13.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:feemwp:358792

DOI: 10.22004/ag.econ.358792

Access Statistics for this paper

More papers in FEEM Working Papers from Fondazione Eni Enrico Mattei (FEEM) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().