World Economic Outlook April 2022

A Greener Labor Market: Employment, Policies, and Economic Transformation (Chapter 3)

To mitigate global warming and keep the average global temperature rise to well-below 2 degrees C, the world must reduce net greenhouse gas emissions to zero by 2050. The policies to spur the green economic transformation needed to achieve this goal will also entail a transformation of the labor market. This chapter of the WEO examines the labor market implications of the green economic transition.

Analyzing a sample of largely advanced economies, the empirical analysis indicates that both greener and more polluting jobs are concentrated among small subsets of workers. Individual workers face tough challenges in moving to greener jobs from more pollution-intensive jobs. Stronger environmental policies help green the labor market and appear more effective when reallocation incentives are not blunted. Model simulations suggest that a policy package incorporating a green infrastructure push, carbon prices, an earned income tax credit, and training, could put an economy on a path to net zero emissions by 2050 with an inclusive transition.

Join chapter lead author Niels-Jakob H. Hansen, Economist for the WEO at the IMF, who will present key findings from the chapter on the transition to a greener labor market. Among others, Niels-Jakob will discuss the requirements for a policy package that can put economies on a path to net zero emissions by 2050 based on an inclusive labor transition. The presentation will be followed by a discussion moderated by Marion Leroutier, Postdoc Fellow at Misum. 

Speaker

Niels-Jakob Hansen is an Economist in the World Economic Studies Division of the IMF’s Research Department. Previously, he worked in the IMF’s Asia Pacific Department. He has participated in missions to Korea, Cambodia, Czech Republic and San Marino. He has also worked on issues related to Fund finances. His research interests include public policy, monetary policy, and labor market issues. He has published in the Review of Economic Studies and The Journal of Economic Inequality. He holds a Ph.D. in Economics from the Institute for International Economic Studies at Stockholm University, and a MPhil in Economics from University of Cambridge.

The event takes place in person at Stockholm School of Economics, room Ragnar. Please use the entry door to the school on Bertil Ohlins gata which will be open all day, and head upstairs in the Atrium. A light vegetarian lunch will be provided on a first come first serve basis, please arrive a few minutes before 12 to find a seat.

Header image by Kindel Media from Pexels