Presentation on theme: "Green Growth and Good Jobs IPED Conference Chicago, IL August 8, 2008 Prof. Robert Pollin Department of Economics and Political Economy Research Institute."— Presentation transcript:
Green Growth and Good Jobs IPED Conference Chicago, IL August 8, 2008 Prof. Robert Pollin Department of Economics and Political Economy Research Institute (PERI) University of Massachusetts-Amherst
Building Clean-Energy Economy Historic Opportunity to Create Good Jobs Long-term problem of wage stagnation Globalization pressures on U.S. Labor Market –Alan Blinder—1/3 of jobs could vulnerable to outsourcing
How Clean-Energy Investments Creates Jobs Consider A Mixed Strategy of Clean- Energy Investments –Three Conservation Strategies Building Retrofits Mass Transit/Freight Rail Smart Grid –Three Renewable Energy Strategies Wind Solar Biomass
Three Sources of Net Job Creation for Alternative Spending Targets Labor Intensity –Spending on Workers vs. Machines/Supplies Domestic Content vs. Imports Wage Levels
Table 3.1. Relative Employment Creation through Fossil Fuel vs. Clean Energy Production $1 Million in Expenditures Hypothetical Case Based on Representative Figures “Fossil Fuels”“Clean Energy” Labor Intensity of Production 30% spending on labor = $300,000 60% spending on labor = $600,000 Domestic Content80% = $240,000 U.S. wage bill 90% = $540,000 U.S. wage bill Average Compensation$60,000$50,000 TOTAL EMPLOYMENT4 JOBS (= $240,000 wage bill/ $60,000 wage) 10.8 JOBS (= $540,000 U.S. wage bill/ $50,000 wage)
Table 1. Total Job Creation through $150 Billion Green Stimulus Program Direct Jobs1,169,000 Indirect Jobs710,000 Induced Jobs564,00 Total Job Creation2.5 million Source: U.S. Bureau of Economic Analysis and authors’ calculations.
Impact of Green Stimulus on Current Labor Market U.S. Labor Market July 2008 –Unemployed = 8.8 million of total market 154 million –Official unemployment rate 5.7% –Creating 2.5 million jobs reduces unemployment to 4.1%