Air Pollution Effects on Labour Market: Evidence from Asymmetric Analysis

This study aims to evaluate the impact of greenhouse gas emissions on unemployment. Panel data encompassing 180 nations spanning the time frame from 1995 to 2018 has been employed. To capture non-linear and asymmetric effects, a recently developed panel quantile estimator has been used. The findings refute the notion of the environmental Kuznets curve and demonstrate that when emissions are at a low level, an increase in emissions leads to a higher rate of unemployment. Conversely, at greater emission levels, the opposite impact is observed. In addition, the analysis using panel quantile regression reveals that the impact of emissions is significantly greater in countries with higher unemployment rates. Ultimately, the correlation between unemployment and emissions remains consistent when unemployment among those with basic education is examined. However, unemployment among those with higher education has a contrasting association with emissions. In summary, the findings in this study indicate that the relationship between greenhouse gas emissions and labour demand is non-linear and contingent upon certain conditions.