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.
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12.08.2025 • 24/2025
20 years after Hurricane Katrina: Church membership contributed significantly to economic recovery
Katrina and other hurricanes caused devastating damage in the south-east of the USA in the summer of 2005. A study by the Halle Institute for Economic Research (IWH) shows: in the years following the disaster, establishments in counties with higher rates of church membership saw a significantly stronger recovery in terms of productivity.
Felix Noth
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