Industrial Decarbonisation, Regional Industrial Activity and the Quality of Employment : a New Wage Premium Multiplier Approach for Value Chain Analysis

Turner, Karen and Alabi, Oluwafisayo and Race, Julia and Katris, Antonios (2020) Industrial Decarbonisation, Regional Industrial Activity and the Quality of Employment : a New Wage Premium Multiplier Approach for Value Chain Analysis. Working paper. University of Strathclyde, Glasgow.

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Abstract

One of the real risks associated with actions to deliver industrial decarbonisation is potential erosion of socio-economic value generation not only within emitting sectors but regional supply chains. We consider how standard input-output methods to report employment and (wage) income multipliers can be extended to elucidate a 'wage premium' multiplier concept that may be used to consider the quality of employment embedded in supply chains. For the illustrative example of the Scottish chemicals sectors, we demonstrate how this metric may be used to identify industrial activities that support a wage premium to the economy relative to the average regional/national wage.