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Katharina Bergant, Rui Mano, and Mr. Ippei Shibata
What are the implications of the needed climate transition for the potential reallocation of the U.S. labor force? This paper dissects green and polluting jobs in the United States across local labor markets, industries and at the household-level. We find that geography alone is not a major impediment, but green jobs tend to be systematically different than those that are either neutral or in carbon-emitting industries. Transitioning out of pollution-intensive jobs into green jobs may thus pose some challenges. However, there is a wage premium for green-intensive jobs which should encourage such transitions. To gain further insights into the impending green transition, this paper also studies the impact of the Clean Air Act. We find that the imposition of the Act caused workers to shift from pollution-intensive to greener industries, but overall employment was not affected.
Katharina Bergant, Rui Mano, and Mr. Ippei Shibata

policies as an indicator of the potential costs of a broader “green” transition. Detailed data on occupations, industries, and households are employed for the former. Plant-level environmental regulations under the Clean Air Act (CAA) are used to examine effects of the latter. Crucial for this work is the definition of green job intensity. Here we follow a recent but rapidly-expanding literature ( Consoli et al., 2016 , Vona et al., 2018 , Bowen et al., 2018 , IMF, 2022 , and Bluedorn et al., 2022 ). We rely on a green index constructed by Vona et al., 2018 based

Peter Poschen and Michael Renner

-intensive manufacturing, waste management, construction, and transportation. These sectors are the targets of policies designed to mitigate climate change, and together they employ more than 1.5 billion people, or about half the global workforce (see ILO, 2012 ). But evidence accumulated over the past decade suggests that combating climate change does not preclude the growth of a healthy job market. Green jobs—those that reduce the environmental impact of economic activity—are critical to shifting to a more environmentally sustainable economy. They fall into two broad categories

Katharina Bergant, Rui Mano, and Mr. Ippei Shibata

Copyright Page © 2022 International Monetary Fund WP/22/129 IMF Working Paper Western Hemisphere Department From Polluting to Green Jobs: A Seamless Transition in the U.S.? Prepared by Katharina Bergant, Rui C. Mano, and Ippei Shibata * Authorized for distribution by Nigel Chalk July 2022 IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate . The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its

Mr. John C Bluedorn, Mr. Niels-Jakob H Hansen, Diaa Noureldin, Mr. Ippei Shibata, and Marina M. Tavares
This paper builds a new set of harmonized indicators of the environmental properties of jobs using micro-level labor force survey data from 34 economies between 2005 and 2019 and analyzes the labor market implications of the green economic transition and environmental policies. Based on the new set of indicators, the paper's main findings are that greener and more polluting jobs are concentrated among smaller subsets of workers, individual workers rarely move from more pollution-intensive to greener jobs, and workers in green-intensive jobs earn on average 7 percent more than workers in pollution-intensive jobs.
Mr. John C Bluedorn, Mr. Niels-Jakob H Hansen, Diaa Noureldin, Mr. Ippei Shibata, and Marina M. Tavares

operator. An example of a typically more emissions-intensive sector is utilities, including electricity and gas. In this paper, we consider the following three sets of questions: How green is the labor market? What are the environmental properties of jobs and how do they vary across economies and sectors? How are they associated with demographic characteristics (such as educational attainment and urbanicity) and earnings? How easily do workers transition into greener jobs? What are the characteristics of workers (including their employment history and education