Abstract
PurposeThis paper investigates the potential wage impacts of a shift to more environmentally sustainable production patterns.Design/methodology/approachThe empirical analysis is carried out using labour force survey data and interval regressions.FindingsEstimates at the individual level suggest that small wage differentials exist: individuals employed in green industries earn about seven per cent more than those working in non-green industries.Originality/valueTo date, very little is known about the characteristics of jobs in the green industry and by extension, the labour force effects that can emerge or change as a result of transitioning towards a greener economy. While exploratory in nature, this analysis seeks to shed light on an underdeveloped area of research, namely, wage inequalities associated with transitioning towards green growth.
Highlights
It is widely accepted that the path to development must address growing environmental issues
Within the United Nations Environment Programme (UNEP), the green economy is seen as a road towards the concept of sustainable development (UNEP, 2011)
As economies around the world attempt to meet their carbon emission targets set by the Paris Climate Agreement, greening is likely to be an emerging global trend at both the country and firm level
Summary
Like many small island states, Barbados has limited natural resources, limitations on import substitution possibilities, small domestic markets and weak inter-industry linkages (Briguglio, 1995) In spite of these challenges, Barbados is currently classified as a high-income country (World Bank, 2020) with very high levels of human development (United Nations Development Programme, 2020). Barbados has committed to making its economy solely reliable on renewable energy by 2030 as well as becoming “the most environmentally advanced green country in Latin America and the Caribbean” This transition has been supported by a number of tax incentives and policies that encourage both sustainable consumption and production. Barbados serves as the ideal country to investigate this issue of the green wage gap, given its long history of green growth and plans to build on this legacy in the future
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