Arbeitspapier

Job displacement costs of phasing out coal

The reduction of carbon emissions will require a rapid phasing out of coal and the displacement of millions of coal miners. How much could this energy transition cost mining workers? We use the dramatic collapse of the UK coal industry to estimate the long-term impact on displaced miners. We find evidence of substantial losses: wages fall by 40% and earnings fall by 80% to 90% one year after job loss. The losses are persistent and remain significantly depressed fifteen years later, amounting to present discounted value earnings losses of between four and six times the miners pre-displacement earnings.

Language
Englisch

Bibliographic citation
Series: IFS Working Papers ; No. 22/37

Classification
Wirtschaft
Wages, Compensation, and Labor Costs: General
Labor Turnover; Vacancies; Layoffs
Unemployment: Models, Duration, Incidence, and Job Search
Subject
Old industrial region
coal mining
miners
dismissal
loss of earnings
Great Britain
Alte Industrieregion
Kohlenbergbau
Bergleute
Kündigung
Verdienstausfall
Großbritannien

Event
Geistige Schöpfung
(who)
Rud, Juan Pablo
Simmons, Michael
Toews, Gerhard
Aragon, Fernando M.
Event
Veröffentlichung
(who)
Institute for Fiscal Studies (IFS)
(where)
London
(when)
2022

DOI
doi:10.1920/wp.ifs.2022.3722
Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Rud, Juan Pablo
  • Simmons, Michael
  • Toews, Gerhard
  • Aragon, Fernando M.
  • Institute for Fiscal Studies (IFS)

Time of origin

  • 2022

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