Workshop

Trade and Environment linkages: What are the Effects on Decent Work?

Given the urgency of addressing environmental degradation and climate change, there is imminent need for a transition towards greener economies and societies. However, green measures have socio-economic consequences that extend beyond their environmental impacts, particularly on jobs, which are not positive by default. Moreover, the effects of a green transition cannot be contained within the borders of a single country or region, as the global economy is connected through international trade and global supply chains. Similarly, trade policy and participation in trade can have significant environmental and labour impacts, both positive and negative. To ensure a just transition, it is essential to analyse the interaction between these different types of effects - a topic that remains under-researched.

This workshop is a first step towards filling this gap. It brings together insights from different perspectives to shed light on the multiple channels through which the transition to a green economy, trade and decent work interact. Interventions at the global and sectoral levels will be followed by a firm-level study by the ILO Research Department.

Agenda

Moderator: Marva Corley-Coulibaly, Chief of the Globalization, Competitiveness and Labour Standards, ILO Research Department

10:15 – 10:25
  • Opening remarks: Moustapha Kamal Gueye, Director of the ILO Priority Action Programme on Just Transitions Towards Environmentally Sustainable Economies and Societies
10:25 – 10:35
  • Insights at the global level: Diana Vivienne Barrowclough, Senior Economist, Globalization and, Development Strategies Division, UNCTAD

10:35 – 10:50
  • Insights at the sectoral level: “Mapping practices, initiatives and policies around the circular economy and emerging services in the retail sector”, Margherita Licata, ILO, Sector.

10:50 – 11:20
  • Insights at the firm level: “Adopting green measures in exporting firms: What are the effects on labour market outcomes?” Nicolas Maître and Pelin Sekerler Richiardi, ILO Research Department
11:20 - 12:00
  • Discussion and Q&A

Mapping practices, initiatives and policies around the circular economy and emerging services in the retail sector

Abstract

The brief focusses on circular business models in the retail sector, making the case for circular jobs that are decent and for a just transition to a circular economy. The analysis offers an overview of both established and emerging circular business models (notably repair, resale, rental and reuse) in three areas: clothing, electrical and electronic equipment, and food that are highly integrated in international trade. By mapping these business models, the paper discusses relevant decent work opportunities and challenges as well as key points for future action.

Adopting green measures in exporting firms: What are the effects on labour market outcomes?

Abstract

This study contributes to the literature on the relationship between trade, labour and environmental sustainability by providing empirical evidence at the firm level. For this purpose, it first explores whether exporting firms are more likely than non-exporting firms to adopt green measures. Second, it assesses how labour market outcomes such as productivity, wages, education level of workers and training provided by firms may vary between green exporters and firms that do not engage in trade nor undertake green measures. The study finds that exporting firms have a significantly higher probability of adopting green measures than non-exporting firms. In addition, on average, among exporting firms, those that implement green measures tend to have higher levels of productivity, pay higher wages, offer more training, and have a similar share of workers with a university degree compared to exporters that do not implement green measures. However, the gain in labour productivity associated with the adoption of green measures and exporting does not seem to translate into higher wages in lower- and upper-middle income countries, but only in high-income countries.