Low-carbon policy and employment: heterogeneity of workers with different skills

This study aims to reveal the effects of low-carbon policy on labor employment structures utilizing a dataset from 295 cities in China from 2005 to 2020. The difference-in-difference design was employed to analyze and verify the mechanism. Results indicate that implementing urban low-carbon transition policies significantly reduces employment opportunities for low-skilled workers while promoting employment opportunities for high-skilled workers. Furthermore, the scale of urban employment was found to have increased considerably. The influence of urban low-carbon construction on skill structure varies depending on regional characteristics and industrial heterogeneity. Notably, green technology innovation and industrial structure transformation can positively impact high-skilled workers while negatively affecting low-skilled workers. The employment effects of low-carbon policy are supported by a range of robust approaches. Governments should lead to employment policies that are compatible with low-carbon policies, including livelihood security for workers and optimized supply of skilled labor.