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Job Displacement Costs of Phasing Out Coal

Author

Listed:
  • Rud, Juan Pablo

    (Royal Holloway, University of London)

  • Simmons, Michael

    (Umeå University)

  • Toews, Gerhard

    (University of Orléans)

  • Aragon, Fernando

    (Simon Fraser University)

Abstract
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 fell by 40% and earnings fell by 80% to 90% one year after job loss. These 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.

Suggested Citation

  • Rud, Juan Pablo & Simmons, Michael & Toews, Gerhard & Aragon, Fernando, 2022. "Job Displacement Costs of Phasing Out Coal," IZA Discussion Papers 15581, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15581
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    References listed on IDEAS

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    Cited by:

    1. Jonathan Colmer & Eleanor Krause & Eva Lyubich & John Voorheis, 2024. "Transitional Costs and the Decline of Coal: Worker-Level Evidence," Working Papers 24-53, Center for Economic Studies, U.S. Census Bureau.
    2. Deiana, Claudio & Giua, Ludovica, 2023. "This site is closed! The effect of decommissioning mining waste facilities on mortality in the long run," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    3. Jonathan Colmer & Eleanor Krause & Eva Lyubich & John Voorheis, 2024. "Transitional costs and the decline in coal: Worker-level evidence," CEP Discussion Papers dp2049, Centre for Economic Performance, LSE.

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    More about this item

    Keywords

    labor displacement; energy transition; coal mines;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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