Effect of Climate Policies on Labor Markets in Developing Countries: Review of the Evidence and Directions for Future Research

51 Pages Posted: 7 Feb 2018 Last revised: 13 Feb 2018

See all articles by Marc Andrew Christian Hafstead

Marc Andrew Christian Hafstead

World Bank

Roberton C. Williams III

University of Maryland

Alexander Alexandrovich Golub

American University

Siet Meijer

World Bank

Badri Narayanan Gopalakrishnan

University of Washington Seattle; ISM

Kevin Nyamweya

World Bank

Jevgenijs Steinbuks

World Bank - Development Research Group (DECRG)

Date Written: February 7, 2018

Abstract

This study surveys one of the critical welfare aspects of contemplating climate policies in developing countries and their potential effect on workers and labor markets. The existing body of evidence finds that climate policies will likely cause a significant reduction of jobs in fossil-fuel industries. These industries make up a relatively small share of total employment, even in fossil-fuel-intensive countries. Therefore, the effect on aggregate employment will likely be small, especially over the long term, since there will be offsetting gains in other industries. However, most of the literature ignores the key features of developing country labor markets and may significantly misrepresent the dynamics of labor market adjustment to climate policies.

Suggested Citation

Hafstead, Marc Andrew Christian and C. Williams III, Roberton and Golub, Alexander Alexandrovich and Meijer, Siet and Narayanan, G. Badri and Nyamweya, Kevin and Steinbuks, Jevgenijs, Effect of Climate Policies on Labor Markets in Developing Countries: Review of the Evidence and Directions for Future Research (February 7, 2018). World Bank Policy Research Working Paper No. 8332, Available at SSRN: https://ssrn.com/abstract=3120116

Marc Andrew Christian Hafstead (Contact Author)

World Bank

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Roberton C. Williams III

University of Maryland

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Alexander Alexandrovich Golub

American University

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Siet Meijer

World Bank

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G. Badri Narayanan

University of Washington Seattle ( email )

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Kevin Nyamweya

World Bank

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Jevgenijs Steinbuks

World Bank - Development Research Group (DECRG) ( email )

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