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Title page 1
Contents 1
Abstact 3
1. Introduction 4
2. Defining a green job and a green wage premium 7
2.1. Defining a green job 7
2.2. Defining a green wage premium 10
3. Empirical strategy 11
3.1. Data 11
3.2. Stylized facts 13
3.3. Estimating a green wage premium 22
4. Results 25
4.1. Reduced form results 25
4.2. Structural model results 30
4.3. Heterogeneity analysis 32
4.4. Robustness checks 33
4.5. Decomposition analysis 35
5. Conclusions 38
References 41
Appendix 47
A. Survey 47
B. Sample details 48
C. Supplementary Tables and Figures 51
Tables 15
Table 1. Green job categories 15
Table 2. Demographic characteristics of jobs 16
Table 3. Demographic characteristics of green jobs categories 18
Table 4. Average hourly wage for different job categories, in Japanese Yen (JPY) and U.S. Dollars (USD) 21
Table 5. Reduced form results of green wage premium (Green job) 26
Table 6. Reduced form results of green wage premium (KEOO index) 29
Table 7. Structure model results of green job wage premium (Green job) 31
Table 8. Green wage premium: Heterogeneity tests 33
Table 9. Structural model results of green job premium: Excluding agriculture 34
Figures 20
Figure 1. KEOO index and wages at occupation level 20
Figure 2. DFL decomposition of log of hourly wage 36
Figure 3. FFL decomposition of log wage gap 37
Appendix Tables 48
Table B1. Employment Status of Sample Respondents 48
Table B2. Summary Statistics of the Whole Sample 49
Table B3. Summary Statistics of Regression Sample 49
Table C1. Durbin-Wu-Hausman Endogeneity Test Results 51
Appendix Figures 50
Figure B1. Histogram of log of hourly wage distribution 50
Figure C1. Estimated Density of Predicted Probabilities for Overlap Assumption Testing 51
Figure C2. Detailed Composition Effects 52
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