Green skills and innovation for inclusive growth

The participation of the IWG in the green skills forum provided an important opportunity for the IWG members to present and discuss a set of policy recommendations for meeting skill needs for green jobs, jointly prepared and building on lessons learned in the course of their initiatives and research activities in different geographic and thematic areas (IWG on greening TVET and skills development,. [...] Specifically, the paper investigates the imposition of a tax on the employment of labour by each industry in proportion to the emissions per hour of labour input used in the industry. [...] Tax inclusive average wage rate for labour in industry i where, is the change in the average hourly wage rate (tax exclusive) for labour in industry i, is the change in the specific tax on employment in industry i, is the tax-exclusive cost of employing labour in industry i as a share of the total cost, is the tax on employing labour in industry i as a share of the total cost. [...] The equations in MLME are expressed in terms of percentage changes of the variables: the system computes the percentage changes in the endogenous variables in some period arising from changes (shocks) to the exogenous variables. [...] The higher the elasticities, the easier it is to switch between occupations and the smaller are the wage rate changes required to clear the markets.