The new German government is aiming for an earlier coal phase-out, “ideally” by 2030. The associated job loss was perhaps the most important concern here. But the consequences of such a job loss for individual workers vary widely: a job loss may be followed by a long period of unemployment, a direct job change or early retirement.

This IZA article dissects a recent IZA paper ‘The Welfare Costs of Job Loss and Decarbonization: Evidence from Germany’s Coal Phase Out’ to answer questions at stake such as, who is most affected by job loss? What additional costs will workers face if we bring forward the coal phase-out from 2038 to 2030? What labor market policies can alleviate the welfare costs?