Green jobs, intertemporal preferences, and social pressure: an experiment for a green transition of the labour market

While the industry is witnessing a progressive ecological transition, it is still unclear how greener sectors can expand in the market without an adequate labour supply. We carry out an experiment (n = 500) to investigate what incentives are most effective in encouraging people to apply for green jobs. To do so, we elicit ranked preferences towards green and brown jobs with different intertemporal payoffs. In the treatment group, subjects experience a mild level of social pressure in favour of a green transition. Findings from a probabilistic model show that, when treated, subjects are 24.4 percentage points more likely to favour green job opportunities, especially those granting increasing wage profiles. Differences in treatment are particularly evident for women, individuals with large circles of friends, introverts, and questioners of the green economy. As the job market transitions toward greener opportunities, our work contributes to understanding how peer pressure strategies can encourage applications for green jobs.