What is Policy and Decision-making

Cities face major challenges due to pollution issues such as significant employment losses as the workforce is becoming more concerned with environmental issues. In this context, digitalization literature is gaining momentum as it has been signaled as a potential game-changer for addressing urban challenges. However, the impact that urban digitalization might have on reversing the negative effects of urban pollution on the job loss is unexplored. This chapter analyzes the relationship between urban pollution and urban employment rates, and the moderating effect of urban digitalization on this relationship, using a sample of 404 OECD cities. The results confirm both hypotheses. When urban pollution increases, the employment rate decreases. Moreover, urban digitalization has the potential to revert this relationship. This chapter contributes to the literature on urban management and to the understanding of urban dynamics as a guide for the necessary evolution of cities.