Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/331888.2 
Year of Publication: 
2025
Series/Report no.: 
IWH Discussion Papers No. 20/2025
Version Description: 
This version: 03.12.2025
Publisher: 
Halle Institute for Economic Research (IWH), Halle (Saale)
Abstract: 
This paper examines how firms adjust the number and types of workers they hire in response to increased biodiversity transition risk. Using the adoption of the Key Biodiversity Areas Standard of 2016 as a source of variation that increases the risk of future land-use restrictions, we find that firms reduce job postings in affected areas and reallocate labor to less exposed regions. This effect is concentrated among firms that make negative impacts on biodiversity. Cuts are stronger among production roles, while hiring in green and adaptive occupations increases. The effect is not driven by changes in capital investment or workers’ labor supply decisions. Our findings contribute to the ongoing debate on the costs and benefits of biodiversity conservation policies and their implications for labor market outcomes.
Subjects: 
biodiversity risk
Key Biodiversity Areas
labor demand
labor supply
JEL: 
G30
J01
Q57
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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2 10419/331888.2 This version: 03.12.2025
1 10419/331888 First version: 19.11.2025

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