Staged pain or systemic crisis? Research on the employment effect of enterprise green transformation

The green transformation is a necessary path for industrialization to reach the advanced stage. Currently, achieving a win-win situation between green transformation and stable employment for residents has become a common concern for theoretical researchers and policymakers. This paper analyzes the influence mechanism of enterprise green transformation on employment using the partial equilibrium model. Furthermore, the employment effect and mechanism of enterprise green transformation are empirically verified with panel data from companies listed on the Shanghai and Shenzhen stock exchanges. The results indicate a dynamic non-linear relationship between enterprise green transformation and employment. As the transformation deepens, its impact on employment changes from negative to positive. Mechanism analysis reveals that enterprise green transformation has the potential to induce output growth and employment virtuous cycle. Additionally, environmental protection investment and labor employment in the transformation have a factor complementary effect. There is heterogeneity in the employment impact of enterprise green transformation, especially for production personnel, low-skilled labor, non-state-owned, heavy-polluting, and medium-low-tech enterprises, which experience stronger employment deprivation.