Thesis title: Aspects of the Italian Labor Market in the Green Transition. The Impacts of the EU-ETS on Incumbent Manufacturing Workers.
This thesis aims at disentangling the individual-level impacts on the career patterns and earnings of incumbent workers employed in Italian manufacturing firms subjected to the European Union Emission Trading Scheme (EU-ETS), the largest cap-and-trade scheme ever implemented worldwide and the main policy for reducing greenhouse gas emissions of the industrial sector in the EU. Within the framework of the VisitInps Scholars research programme, we use administrative linked employer-employee data to match each single ETS-firm-specific worker to its non-ETS-firm control worker and perform the analysis via difference-in-difference at the individual level. The richness of the INPS archives allows us to get full coverage of the first three phases of the policy, from the very first implementation year, 2005, until the end of the third phase, 2020, using a pre-treatment control time interval of five years (2000-2004). The results presented in this thesis show a positive impact of the policy on annual and weekly wages, and on paid weeks, improving career perspectives and lowering the risk of displacement. The analysis is complemented by a focus on rent-sharing and sorting of workers within firms through the estimation of the AKM model, and a preliminary investigation on (green) occupations dynamics.