How to hire the best for less - Philipp Krueger's research featured in the FT
Will workers accept lower pay at environmentally sustainable firms?
An insightful research by GFRI’s professor of responsible finance, Philipp Krueger, was featured in the Financial Times.
In their paper, Krueger and his co-authors uncover the « sustainability wage gap »: notably lower salaries earned by people in more environmentally friendly firms.
The gap has widened since 2001. “It is growing, which is consistent with the idea that preferences for protecting the environment are strengthening over time,” says Prof. Krueger.
The wage gap is also larger for workers with high cognitive skills, such as memory and problem solving, as well as the non-cognitive abilities employers increasingly value: perseverance, motivation, social skills.
Nov 17, 2023