Economics Commons^™

Social Costs Of Jobs Lost Due To Environmental Regulations, Timothy J. Bartik

Upjohn Institute Working Papers

This paper estimates the social costs of job loss due to environmental regulation. Per job lost, potential social costs of job loss are high, plausibly over $100,000 in present value costs (2012 dollars) per permanently lost job. However, these social costs will typically be far less than the earnings associated with lost jobs, because labor markets and workers adjust, increased leisure has some value, and employers benefit from wage reductions. A plausible range for social costs is 8–32 percent of the associated earnings of the lost jobs. Social costs will be higher for older workers, high-wage jobs, and in high …