TY  - BOOK
AU  - Castellanos,Kenneth A.
AU  - Heutel,Garth
ED  - National Bureau of Economic Research.
TI  - Unemployment, Labor Mobility, and Climate Policy
T2  - NBER working paper series
PY  - 2019///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - May 2019; Hardcopy version available to institutional subscribers
N2  - We develop a computable general equilibrium model of the United States economy to study the unemployment effects of climate policy and the importance of cross-industry labor mobility.  We consider two alternate extreme assumptions about labor mobility: either perfect mobility, as is assumed in much previous work, or perfect immobility.  The effect of a $35 per ton carbon tax on aggregate unemployment is small and similar across the two labor mobility assumptions (0.2-0.4 percentage points).  The effect on unemployment in fossil fuel sectors is much larger under the immobility assumption - a 24 percentage-point increase in the coal sector - suggesting that models omitting labor mobility frictions may greatly under-predict sectoral unemployment effects.  Returning carbon tax revenue through labor tax cuts can dampen or even reverse negative impacts on unemployment, while command-and-control policies yield less efficient outcomes
UR  - https://www.nber.org/papers/w25797
UR  - http://dx.doi.org/10.3386/w25797
ER  -