TY  - JOUR
AU  - Burgess,Simon
AU  - Knetter,Michael M.
TI  - An International Comparison of Employment Adjustment to Exchange Rate Fluctuations
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5861
PY  - 1996
Y2  - December 1996
UR  - http://www.nber.org/papers/w5861
L1  - http://www.nber.org/papers/w5861.pdf
N1  - Author contact info:
Simon Burgess
Centre for Market and Public Organisation
2 Priory Road
Bristol
BS8 1TX
UK
E-Mail: Simon.Burgess@bristol.ac.uk, karen.ireland@bristol.ac.uk

Michael M. Knetter
School of Business
University of Wisconsin, Madison
5110 Grainger Hall
975 University Avenue
Madison, WI  53706-1323
Tel: 608/262-1758
Fax: NA
E-Mail: mike.knetter@supportuw.org
AB  - 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.
ER  -