Employment Responses to Increased Biodiversity Transition Risk
Duc Duy Nguyen, Huyen Nguyen, Trang Nguyen, Vathunyoo Sila
IWH Discussion Papers,
No. 20,
2025
Abstract
This paper examines how firms adjust the number and types of workers they hire in response to increased biodiversity transition risk. Using the adoption of the Key Biodiversity Areas Standard of 2016 as a source of variation that increases the risk of future land-use restrictions, we find that firms reduce job postings in affected areas and reallocate labor to less exposed regions. This effect is concentrated among firms that make negative impacts on biodiversity. Cuts are stronger among production roles, while hiring in green and adaptive occupations increases. The effect is not driven by changes in capital investment or workers’ labor supply decisions. Our findings contribute to the ongoing debate on the costs and benefits of biodiversity conservation policies and their implications for labor market outcomes.
Read article
Media Response
Media Response December 2025 Oliver Holtemöller: Mini-Aufschwung im kommenden Jahr wird wieder kleiner in: Handelsblatt, 12.12.2025 Oliver Holtemöller: Ökonomen rechnen mit…
See page
Economic Outlook
IWH Economic Outlook 2026 Slight Upturn on the Horizon, Structural Problems Remain December 11, 2025 As the year draws to a close, it remains uncertain whether the German economy…
See page
Halle Institute for Economic Research
Slight upturn on the horizon, structural problems remain As the year draws to a close, it remains uncertain whether the German economy is on a path to recovery, as export weakness…
See page
Archive
Media Response Archive 2021 2020 2019 2018 2017 2016 December 2021 IWH: Ausblick auf Wirtschaftsjahr 2022 in Sachsen mit Bezug auf IWH-Prognose zu Ostdeutschland: "Warum Sachsens…
See page
East Germany
The Nasty Gap 30 years after unification: Why East Germany is still 20% poorer than the West Dossier In a nutshell The East German economic convergence process is hardly…
See page
Research Articles
Research Articles Explore cutting-edge research based on CompNet’s micro-aggregated firm-level data and related analytical tools. These articles cover empirical and theoretical…
See page
Supervision and Research
Supervision and Research Research A dissertation is, of course, first and foremost an individual endeavour which, in addition to the purely intellectual demands, also requires a…
See page
Centre for Business and Productivity Dynamics
Centre for Business and Productivity Dynamics (IWH-CBPD) The Centre for Business and Productivity Dynamics (CBPD) was founded in January 2025 and works with policy and research…
See page
Research Clusters
Three Research Clusters Each IWH research group is assigned to a topic-oriented research cluster. The clusters are not separate organisational units, but rather bundle the…
See page
