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Job displacement costs of phasing out coal.pdf
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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.
Authors
Research Associate Royal Holloway, University of London
Juan is an IFS Research Associate and an Associate Professor of Economics in the Department of Economics at Royal Holloway, University of London.
Fernando M. Aragón
Working Paper details
- DOI
- 10.1920/wp.ifs.2022.3722
- Publisher
- Institute for Fiscal Studies
Suggested citation
M. Aragón, F et al. (2022). Job displacement costs of phasing out coal. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/job-displacement-costs-phasing-out-coal (accessed: 24 April 2024).
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