Conference paper 19: Labor Market Impacts of The Green Transition In The MENA

FEMConfPaper19-2024 | October 2025

Title

« Conference paper 19: Labor Market Impacts of The Green Transition In The MENA »

By

Shireen AlAzzawi and Vladimir Hlasny

Contributeurs

Note :

This paper was submitted and accepted for presentation at the FEMISE 2024 Annual Conference, “The Euromed Partnership as a Catalyst for SDGs: Advancing Value Chains, Climate Action, Digital Transformation, and Youth Empowerment,” Cairo, Egypt, 10-12 December 2024. The paper was evaluated and peer reviewed by experts, whose contributions are greatly appreciated. The revised version was accepted for publication under the FEMISE Conference Paper series. The opinions and content of this document are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of the FEMISE, the IEMed or the AECID.

Summary :

Abstract

As the rising risks of climate change intensify the imperative for global decarbonization, economies worldwide are gravitating toward a green transition. This shift’s impact on labor markets varies starkly between regions and countries. While advanced economies are experiencing steady growth in environmentally sustainable jobs, Middle East and North Africa (MENA) transitional economies, many long tethered to oil revenues including through remittances from their migrant workers, face mounting pressure to decouple their development from oil dependence. This paper provides the first careful assessment of green skills and jobs across the region using data from four MENA countries: Egypt (2018), Jordan (2016), Palestine (2020) and Tunisia (2014). Applying a skill greenness classification derived from the U.S. O*NET database to labor market surveys in these four countries, we estimate that fewer than 15% of MENA workers currently hold green jobs. Our analysis reveals that women are more likely to hold green occupations than men, even though in Egypt women are presently largely segregated into non-green sectors. More educated workers and those in higher economic strata show markedly higher green job shares. However, the difference between youth and prime-working age adults is surprisingly negligible. These findings point to the transformative potential of the green transition in the MENA developing countries while raising concerns that the green shift may exacerbate existing inequalities. Our study provides clear policy recommendations in crafting targeted interventions, from worker reskilling, job matching and labor mobility support, to enhanced access to finance and industry-academia partnerships, ensuring an inclusive, sustainable economic future for the region.

Download the Conference paper here