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Transitional Costs and the Decline of Coal: Worker-Level Evidence

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Transitional Costs and the Decline of Coal: Worker-Level Evidence

Author:
Working Paper Number: CES-24-53

Abstract

CES_working_paper_series
Download Transitional Costs and the Decline of Coal: Worker-Level Evidence [PDF - > 1MB]

We examine the labor market impacts of the U.S. coal industry’s decline using comprehensive administrative data on workers from 2005-2021. Coal workers most exposed to the industry’s contraction experienced substantial earnings losses, equivalent to 1.6 years of predecline wages. These losses stem from both reduced employment duration (0.37 fewer years employed) and lower annual earnings (17 percent decline) between 2012-2019, relative to similar workers less exposed to coal’s decline. Earnings reductions primarly occur when workers remain in local labor markets but are not employed in mining. While coal workers do not exhibit lower geographic mobility, relocation does not significantly mitigate their earnings losses.

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Page Last Revised - October 2, 2024
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