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Road to net-zero: Occupational mobility and labor reallocation impacts of climate transition shocks

The impact of the climate transition and associated policies on the labor market is a topic of considerable interest and concern among policymakers, particularly in the context of the ambitious and accelerated climate goals set over the next two decades. This project will aim to analyze the labor reallocation process and how employment prospects are affected by the transition of climate-displaced workers to new jobs. Using labor force surveys from different countries, we will build occupational mobility networks to analyze how workers may adapt to climate shocks and climate policy change scenarios. For instance, the transition to net-zero could involve a scenario in which workers in carbon-intensive occupations are likely to be displaced, while new jobs open in green and clean energy industries. The project will aim at detecting which workers are both likely to be displaced by climate change policies and face obstacles for transitions into new jobs. Furthermore, by studying the current distribution of workers across occupations and the labor mobility of different countries we will evaluate which countries may need more support to achieve a green transition. Finally, we would explore the possible implications of the climate shocks on employment of workers of different occupations using the model developed by del Rio-Chanona (2021).



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