The project analyzes how skill demands of firms shift with the digital and green transition, and what this implies for potential skills shortages in regional labour markets. We combine detailed data from workers and establishments to quantify how changes in technology and green production affect investments and the skill structure in firms; and what the consequences for workers and wages are. Our empirical analysis relies on event studies and shift-share designs at the firm-, industry- and local labor market level. The analysis proceeds in several steps: 1) We estimate the relationship between advances in digital (AI, robots) and green technologies on firm-level investments; 2) We analyze how this affects skill demands and wages in firms and how this translates into skill shortages in occupations and regions; 3) We explore the heterogeneity by initial skill structure of the firm and the local labor market as well as the distributional consequences across different workers.

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