Does it pay to be green? An exploratory analysis of wage differentials between green and non-green industries

Abstract

PurposeThis paper investigates the potential wage impacts of a shift to more environmentally sustainable production patterns.Design/methodology/approachThe empirical analysis is carried out using labour force survey data and interval regressions.FindingsEstimates 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.Originality/valueTo 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.