Green Jobs and the Future of Work for Women and Men

Staff Discussion Notes, September 30, 2024

Source details

The transition to a sustainable and green economy requires workers to move out of carbon-intensive jobs and workers to move into green jobs.
The pace and effectiveness of the transition hinge not only on climate policies but also on the skills and adaptability of workers.
Economies with a robust supply of STEM-educated workers and a more equal treatment of women:
- Generate more green innovation.
- Face lower bottlenecks in expanding the green workforce.
- Experience emission reductions from climate policies, particularly energy taxes, that are 2 to 4 percentage points larger than in economies with a less inclusive and educated workforce.
Green jobs have been growing worldwide, but current distribution by gender is unequal:
- Men currently hold close to two-thirds of green positions.
- Women currently hold one-third of green positions.
Green jobs are associated with a wage premium:
- 7 percent premium for men.
- 12 percent premium for women.
The higher premium for women suggests that men’s and women’s labor supply may not meet demand in green sectors.
Artificial intelligence (AI) could be beneficial for workers in green jobs.

The combination of strong STEM education and more equal treatment of women supports faster, lower-cost transitions to green economies by:
- Increasing green innovation.
- Reducing workforce expansion bottlenecks for green sectors.
Energy taxes and other climate policies deliver larger emission reductions in economies with an inclusive and educated workforce (2 to 4 percentage points larger).
Gender imbalances in green employment and differing wage premiums indicate potential mismatches between demand for green workers and labor supply by gender.

Strengthen education policies that expand STEM training to ensure an adequate supply of skills for green jobs.
Promote gender-inclusive labor policies to reduce bottlenecks in expanding the green workforce and to ensure women and men can both access and benefit from green employment opportunities.
Consider the distributional impacts of climate policies (for example, energy taxes) in the context of workforce composition and skills to maximize emissions reductions and minimize transition costs.
Leverage AI where appropriate to enhance productivity and support workers in green jobs.

Staff Discussion Notes No. 2024/003 (2024), DOI: https://doi.org/10.5089/9798400286049.006.

Staff Discussion Note
- Staff Discussion Note (Markdown version)
- Staff Discussion Note (PDF)