While pointing out this challenge as a whole in which women workers are more at disadvantageous position, an International Monetary Fund (IMF) staff discussion note on “Green Jobs and the Future of Work for Women and Men” has said that men currently hold close to two-thirds of these green job positions and women only one-third.

Though higher wage premium for women also suggest that it would, after controlling for workers’ and sectoral characteristics, be resulting in a smaller gender pay gap in green jobs than for other jobs in the economy, but women are less likely to transition to green jobs, because of lack of education and skill.

Presently, polluting jobs are declining in importance in Advanced Economies (AEs), but in contrast these are rising emerging market and developing economies (EMDEs). Obviously, faster transition to green jobs is happening in AEs than in EMDEs. Transition is smoother when there is availability of STEM (Science, Technology, Engineering, and Mathematics) – educated workers. “Our findings suggest that economies with a robust supply of STEM-educated workers and more equal gender treatment could transition faster and at a lower cost to a green economy,” says the note.

Evidence suggests that energy taxes are associated with larger reductions in greenhouse gas emissions intensity—by 2 to 4 percentage points—in countries with a larger supply of STEM-educated workers and more equal treatment of women. This holds even after controlling for tertiary education rates, institutional quality, income level, and past growth. STEM-educated workers and gender equality policies appear to stimulate green innovation and green employment, reducing bottlenecks. Moreover, green jobs are well-suited to benefit from artificial intelligence, which could boost their productivity and wage potential over time.

Despite green jobs being a growing source of employment, women are strongly underrepresented, raising concerns about the gender-inclusiveness of the green transition. In both AEs and EMDEs, only one-third of those jobs are held by women, making them a less significant employment source for women compared to men.

Green jobs among college-educated workers are concentrated in STEM, suggesting that most of the green gender employment gap among college-educated workers could be attributed to the gender gap in STEM degrees and, to a lesser extent, to the managerial gender gap. Among workers without a college degree, the green gender employment gap mirrors a gender gap in manual jobs.

Workers may also face specific vulnerabilities in the green transition. For example, in Brazil, Colombia, and South Africa, the decline in polluting jobs, which are typically held by middle-class workers, coupled with the increasing demand for green jobs, which are usually higher earners’ jobs, may lead to heightened income inequality and worsen the hollowing out of the middle class. This phenomenon would be exacerbated for emerging markets, which have a higher proportion of such jobs than AEs.

Tackling the identified disparities and vulnerabilities can help make the green transition more effective and inclusive. Policies should aim at enhancing STEM education, strengthening mentoring programs, and providing exposure to female role models in STEM.

STEM degrees are not only key for the green transition, but also for overall technological progress and economic growth. Governments should support women’s participation in the economy, the IMF note says, by reducing labour market barriers, improving access to finance, removing legal barriers, using gender budgeting, reforming legal frameworks, and increasing women’s board representation.

Policies to help workers in declining polluting industries include retraining, place-based investments, and strengthening social safety nets, IMF note says, adding, “While some of these policies, such as investing in STEM education and childcare, may require short-term government costs, research has shown that the long-term benefits are larger than the costs.”

The IMF discussion note emphasized that the green transition offers a unique chance for a more inclusive workforce. It is imperative that policymakers, the private sector, and civil society seize this moment to forge a sustainable and inclusive future. Policies that boost STEM education or improve women’s opportunities in labour markets could help increase the supply of workers for the green economy and address imbalances in these markets.

Currently, Green jobs account for about 10 to 15 percent of employment and are slightly more prevalent in AEs than in EMDEs. On average, recent data shows that 14 percent of workers in AEs are employed in green jobs, compared to approximately 11 percent in EMDEs. Notably, there is considerable variation within these country groups, especially among EMDEs. The proportion of the workforce employed in polluting jobs are 9.2 per cent in AEs and 12.5 per cent in EMDEs. Despite the emphasis on green and polluting jobs, most workers are neither in green nor polluting jobs, with neutral jobs accounting for about 77 percent of employment on average. (IPA Service)