abstract:

It is insufficient to calculate the number of jobs in the mining industry to determine the labour market effects of a coal phase-out. This paper estimates the scale of mining-related and mining-dependent jobs in Europe’s largest hard coal mining region: Upper Silesia. In addition, we provide a precise structure and spatial distribution of mining-related companies using information from public tenders offered by five of the largest coal enterprises, coupled with financial and employment data from official administrative repositories. Our observations have shown a significant agglomeration effect in the region: companies within 20 kilometres of the nearest active hard coal mine gained 80% of all tender revenues. Moreover, we found that 41% of all identified jobs in mining-dependent companies in Upper Silesia were highly at risk of liquidation if there was a decline in coal production. Finally, we argue for labour market mitigation policies tailored to mining-dependent employees and the widespread application of administrative data in just transition planning to address the limitations of dominant top-down modelling approaches.

keywords: hard coal mining, indirect employment, labour market, administrative data, Upper Silesia

JEL codes: , ,

publication year: 2022

language : English

thematic categories : ,

publishing series : IBS Working Paper

publication number : 07/2022

ISSN : 2451-4373

additional information: The World Bank supported this research report under Contract No. 7201616 – Support to Energy Transition in Coal Regions, Poland (P173079). We thank Luc Christiaensen and Celiné Ferre from the World Bank for their insightful comments. This report uses data from the Ministry of State Assets and major Polish mining enterprises. These institutions have no responsibility for the results and conclusions presented herein, which are those of its authors. The usual disclaimers apply. All errors are ours.

Projects related to this publication:

Labour force indirectly affected by coal mine closures

files to download IBS_WP_07_2022
authors:
Joanna Mazurkiewicz

Institute for Structural Research (IBS)

Jan Frankowski

Institute for Structural Research (IBS)

Jakub Sokołowski

Institute for Structural Research (IBS), University of Warsaw

all publications