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Peer-reviewedCC BYStructural Change and Economic Dynamics

Skill-biased employment and the stringency of environmental regulations in European Countries

  • José Alberto Fuinhas1
  • Asif Javed2
  • Dario Sciulli3
  • Edilio Valentini3
  1. 1Faculty of Economics, and Centre for Business and Economics Research (CeBER), University of Coimbra, 3004-531 Coimbra, Portugal
  2. 2School of Advanced Studies, University of “G. d’Annunzio” of Chieti-Pescara, 66100 Chieti, Italy
  3. 3Department of Economic Studies, University of “G. d’Annunzio” of Chieti-Pescara, 65127 Pescara, Italy
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Abstract

Governments across the globe are implementing stricter environmental policies to combat climate change and promote sustainability. This study contributes to the growing literature exploring the influence of environmental policy on skill-biased employment across various occupations. Specifically, we examine the causal effect of the revised version of Environmental Policy Stringency Index (EPS) and its components on skill-biased employment, focusing on occupations such as managers, professionals, technicians, and manual workers across 21 European economies from 2008 to 2020. Using the Method of Moments Quantile Regression (MMQR), the findings reveal that stringent environmental policies affect employment shares across different occupational categories. Skilled workers tend to benefit more from such policies, with a notable increase in the employment of professionals across all policy measures and a more differentiated impact among technicians and managers. In contrast, manual workers are generally adversely affected by environmental policies. These asymmetric effects on occupations exacerbate labour market inequalities, including disparities in employment levels and potential earnings. This research highlights the importance of designing tailored policies to mitigate adverse labour market outcomes while facilitating a transition to sustainable economic practices.

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Cite

BibTeXRIS
BibTeX
@article{fuinhas2026skillbiased,
  title = {{Skill-biased employment and the stringency of environmental regulations in European Countries}},
  author = {José Alberto Fuinhas and Asif Javed and Dario Sciulli and Edilio Valentini},
  journal = {Structural Change and Economic Dynamics},
  year = {2026},
  month = aug,
  doi = {10.1016/j.strueco.2026.07.015},
  url = {https://doi.org/10.1016/j.strueco.2026.07.015},
  note = {CC BY},
}
RIS
TY  - JOUR
TI  - Skill-biased employment and the stringency of environmental regulations in European Countries
AU  - José Alberto Fuinhas
AU  - Asif Javed
AU  - Dario Sciulli
AU  - Edilio Valentini
PY  - 2026
DA  - 2026/08/05
JO  - Structural Change and Economic Dynamics
DO  - 10.1016/j.strueco.2026.07.015
UR  - https://doi.org/10.1016/j.strueco.2026.07.015
AB  - Governments across the globe are implementing stricter environmental policies to combat climate change and promote sustainability. This study contributes to the growing literature exploring the influence of environmental policy on skill-biased employment across various occupations. Specifically, we examine the causal effect of the revised version of Environmental Policy Stringency Index (EPS) and its components on skill-biased employment, focusing on occupations such as managers, professionals, technicians, and manual workers across 21 European economies from 2008 to 2020. Using the Method of Moments Quantile Regression (MMQR), the findings reveal that stringent environmental policies affect employment shares across different occupational categories. Skilled workers tend to benefit more from such policies, with a notable increase in the employment of professionals across all policy measures and a more differentiated impact among technicians and managers. In contrast, manual workers are generally adversely affected by environmental policies. These asymmetric effects on occupations exacerbate labour market inequalities, including disparities in employment levels and potential earnings. This research highlights the importance of designing tailored policies to mitigate adverse labour market outcomes while facilitating a transition to sustainable economic practices.
SN  - 0954-349X
SN  - 1873-6017
ER  -