Publication: Five Frictions: Key Labor Market Barriers to Unlocking Job Growth in the Green Transition
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2025-11-05
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2025-11-11
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This paper proposes a framework for identifying labor market frictions that are critical to unlocking job growth in the green transition and suggests possible solutions to address each barrier. Recognizing that there is no one-size-fits-all solution, it provides indicative measures of labor market adjustments and points to literature that explores these options in greater depth. By examining the specific challenges faced by workers and proposing targeted interventions, this paper seeks to facilitate smoother and more inclusive transitions for the labor force, thereby supporting the overall goals of the green transition. The paper draws on several World Bank analyses, particularly from Country Climate and Development Reports (CCDRs), as well as key literature. While it does not provide an exhaustive review of all existing literature, it focuses on offering actionable insights to a general policy audience.
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“World Bank. 2025. Five Frictions: Key Labor Market Barriers to Unlocking Job Growth in the Green Transition. Prosperity Insight Series. © World Bank. http://hdl.handle.net/10986/43960 License: CC BY-NC 3.0 IGO.”
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