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The role of innovation and agglomeration for employment growth in the environmental sector

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  • Jens Horbach
  • Markus Janser
Abstract
The environmental sector is supposed to yield a dual benefit: its goods and services are intended to tackle environmental challenges and its establishments should create new jobs. However, it is still unclear in empirical terms whether that really is the case. This paper investigates to what extent employment growth in establishments with green products and services is higher compared to other establishments. Furthermore, the main factors determining labour demand in this field are analysed. We use linked employment and regional data for Germany. The descriptive results show that the environmental sector is characterised by disproportionately high employment growth. The application of a generalised linear mixed model reveals that especially innovation and industry agglomeration foster employment growth in establishments in the environmental sector. Establishments without green products and services show a smaller increase in employment, even if they are also innovative.

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  • Jens Horbach & Markus Janser, 2016. "The role of innovation and agglomeration for employment growth in the environmental sector," Industry and Innovation, Taylor & Francis Journals, vol. 23(6), pages 488-511, August.
    • Handle: RePEc:taf:indinn:v:23:y:2016:i:6:p:488-511
    DOI: 10.1080/13662716.2016.1180237
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    8. Möller, Joachim, 2015. "Verheißung oder Bedrohung? : die Arbeitsmarktwirkungen einer vierten industriellen Revolution," IAB-Discussion Paper 201518, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    14. Aurore Darmandieu & Concepción Garcés‐Ayerbe & Antoine Renucci & Pilar Rivera‐Torres, 2022. "How does it pay to be circular in production processes? Eco‐innovativeness and green jobs as moderators of a cost‐efficiency advantage in European small and medium enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1184-1203, March.
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    16. Janser, Markus, 2018. "The greening of jobs in Germany : First evidence from a text mining based index and employment register data," IAB-Discussion Paper 201814, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    17. Luigi Aldieri & Maxim Kotsemir & Concetto Paolo Vinci, 2019. "The impact of environmental innovations on job-creation process: an empirical investigation for Russian regions," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(2), pages 285-306, April.

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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