Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322172 
Year of Publication: 
2025
Series/Report no.: 
Working Paper No. 13.2025
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
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.
Subjects: 
Green industrialisation
Local job multipliers
Employment effects of the green transition
Shift-share IV design
Difference-in-differences
JEL: 
J21
O14
R11
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.