Energy transitions and labor market patterns in the U.S. coal industry

Michieka, Nyakundi M., Graziano, Marcello, Musso, Marta and Fouquet, Roger (2022) Energy transitions and labor market patterns in the U.S. coal industry. Structural Change and Economic Dynamics, 63. 501 - 514. ISSN 0954-349X

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Abstract

The U.S. coal industry is in the midst of a transition. Changes in regulation and technological innovation from other fossils and renewables have affected its competitiveness. These could have significant impacts on the labor market where jobs could be lost. In this study, we investigate how changes in employment in the coal industry affect wages in 20 industries in 10 U.S. coal producing states. We assess how these transitions impact welfare programs, since coal producing regions are associated with higher poverty levels. Results show that in the long run, migration of coal workers decreased wages in the construction, manufacturing sectors. Point estimates reveal that an increase in separations of coal workers increase Supplemental Nutrition Assistance Program (SNAP) caseloads. In states where coal mining has a smaller contribution to GDP, an increase in coal employment increases SNAP caseloads.

Item Type:	Article
Official URL:	https://www.sciencedirect.com/journal/structural-c...
Additional Information:	© 2022 The Authors
Divisions:	Grantham Research Institute
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor
JEL classification:	I - Health, Education, and Welfare > I3 - Welfare and Poverty > I38 - Government Policy; Provision and Effects of Welfare Programs J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J21 - Labor Force and Employment, Size, and Structure J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc. Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes
Date Deposited:	09 Aug 2022 16:36
Last Modified:	30 Apr 2024 23:21
URI:	http://eprints.lse.ac.uk/id/eprint/115941

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