Journal of Economics and Development, Vol. 23 No. 3, pp. 284-298. https://doi.org/10.1108/JED-08-2020-0099
Does it pay to be green? An exploratory analysis of wage differentials between green and non-green industries
This paper investigates the potential wage impacts of a shift to more environmentally sustainable production patterns.
The empirical analysis is carried out using labour force survey data and interval regressions.
Estimates at the individual level suggest that small wage differentials exist: individuals employed in green industries earn about seven per cent more than those working in non-green industries.
To date, very little is known about the characteristics of jobs in the green industry and by extension, the labour force effects that can emerge or change as a result of transitioning towards a greener economy. While exploratory in nature, this analysis seeks to shed light on an underdeveloped area of research, namely, wage inequalities associated with transitioning towards green growth.
Keywords:s Green economy, Greening, Green jobs, Wage differentials, Intra-industry wages