NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

An International Comparison of Employment Adjustment to Exchange Rate Fluctuations

Simon Burgess, Michael M. Knetter

NBER Working Paper No. 5861
Issued in December 1996
NBER Program(s):   IFM   ITI

This paper evaluates the response of employment to exchange rate shocks at the industry level for the G-7 countries. Using a simple empirical framework that places little a priori structure on the pattern of response to shocks, we find the data are consistent with the view that employment in European industries, at least France and Germany, is much less influenced by exchange rate shocks and much slower to adjust to long run steady states. The United States, Japan, Canada, the United Kingdom and Italy all appear to adjust more quickly. German and Japanese employment are quite insensitive to exchange rate fluctuations, consistent with previous research on output and markup responses to exchange rates.

download in pdf format
   (1114 K)

email paper

This paper is available as PDF (1114 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5861

Published: Review of International Economics (February 1998): 151-163.

Users who downloaded this paper also downloaded these:
Branson and Love w2435 The Real Exchange Rate and Employment in U.S. Manufacturing: State and Regional Results
Goldberg and Tracy Exchange Rates and Local Labor Markets
Branson and Love w2491 The Real Exchange Rate, Employment, and Output in Manufacturing in the U.S. and Japan
Campa and Goldberg w6749 Employment versus Wage Adjustment and the US Dollar
Klein, Schuh, and Triest w7466 Job Creation, Job Destruction, and the Real Exchange Rate
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us