Date of This Version
6-6-2025
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.
Recommended Citation
Frattini, Federico Fabio; Vona, Francesco; Bontadini, Filippo; and Colantone, Italo, "The Local Job Multipliers of Green Industrialization" (June 06, 2025). Fondazione Eni Enrico Mattei Working Papers. Paper 1469.
https://services.bepress.com/feem/paper1469