Employment in the electricity sector

April 10, 2024

In the last decade, there has been a deep transformation of the value chain in the electricity sector conveyed by the “3D” paradigm Decentralization, Decarbonization, and Digitalization. This study investigates to what extent the recent paradigm shift in the electricity sector has affected the structure of employment and wages in the Portuguese case.

Liberalization in the sector led to the entry of new players and to workforce downsizing, most notably in occupations involving routine cognitive tasks and non-routine manual tasks. The employment share of occupations involving non-routine cognitive tasks doubled from 29.7% in 2002 to 58.1% in 2020. Furthermore, the paper observes a lower wage growth acceleration in the last two decades for workers employed in routine (cognitive or manual) occupations, when compared with similar workers employed in non-routine occupations (cognitive or manual).

Click here to go to the paper by Ana Alvarelhão, Joana Resende, Anabela Carneiro.


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