Daniela Sonedda (University of Insubria)
Michel Serafinelli
We assess how coal phaseout affects local employment. After the industrys rapid dissolution in Great Britain (GB) post-1980, the number of total jobs rebounded in many affected areas defined as those with an initial high coal employment share even surpassing pre-phaseout levels despite the loss of coal jobs. Notably, 47% of the affected areas saw employment growth in the four decades post-phaseout outpacing the GB average. These findings indicate that a significant portion of affected areas successfully adapted to the coal phaseouts negative impact. We then explore why certain affected areas rebounded, while others did not. Our analysis reveals that the impact of coal phaseout on local employment varied based on how close areas were to tertiary education institutions (TEIs). In the decade prior to the coal phaseout, employment growth rates were comparable between areas near and far from TEIs. However, following the phaseout places closer to TEIs saw markedly faster employment growth. The growth of advanced manufacturing until the late 1990s, combined with the rise of skill-intensive service sectors, explains this trend by offsetting employment declines in the coal industry.