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We analyze the employment and environmental effects of US firms’ exposure to green and digital technologies between 2010 and 2023. Using establishment-level data on online job postings, we construct a new measure of technological adoption by linking job skill requirements to advances in green and digital patents. We address endogeneity concerns using a shift-share instrumental variables design based on technological progress outside the US, yielding four main findings. First, increases in green technology adoption lead to job creation, with an elasticity of employment to green exposure of 0.4-0.5, though this effect weakened from 2015. Second, the employment impact of green innovation varies across sectors – innovation in information technology and buildings complements labor, while advances in transportation and smart grids substitute for workers. Third, both green and digital innovations raise relative demand for high-skill workers. Fourth, we find no evidence of negative environmental impacts of digital technology at the firm level.
