Abstract

We analyze the effects of the transofrmation due to automation and decarbonization on the labor market. We pay special attention on how individual workers adjust to the changin labor demand and whether they manage to retain their level of income despite having to change plants or occupations.Previous results of the same team of co-authors suggest that workers in regions with high union coverage are less likely to leave their plants due to the exposure to industrial robots. However, those results cannot be interpreted causaly due to a high level of aggregation and possible omitted variable bias.In this project, we analyze the role of institutional workers' representation in detail and put a stronger emphasis on the transformation due to decarbonization by using plant level survey data. Moreover, we will analyze how further training can play a role to manage the individual adjustment to transformation.