The hidden winners of renewable energy promotion : insights into sector-specific wage differentials

"In light of Germany´s transition approaches towards a sustainable energy system this paper examines differences of employment structure and wage differentials between renewable energy establishments and their sector peers. To do so, we have developed a novel data set by linking company-level information from the German Renewable Energy Federation with establishment-level data of the IAB Establishment History Panel. According to our descriptive evidence, there are significant differences in wages and in several other characteristics. Looking at the top-four renewable energy sectors, our estimates show that human capital and other establishment- level characteristics mostly explain the wage differential among manufacturers and energy providers. However, we find a persistent 'renewable energy wage premium' of more than ten percent in the construction installation activities and the architectural and engineering services. We interpret this premium as a positive indirect effect of the promotion of renewable energies for the benefit of employees in renewable energy establishments within these two sectors." (Author's abstract, IAB-Doku) ((en))<br><br><b>Additional Information</b><ul><li><a href='http://doku.iab.de/aktuell/2014/aktueller_bericht_1406.pdf'>deutsche Kurzfassung</a></li></ul>