NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Job Creation, Job Destruction, and the Real Exchange Rate

Michael W. Klein, Scott Schuh, Robert K. Triest

NBER Working Paper No. 7466
Issued in January 2000
NBER Program(s):   IFM

This paper contributes to an understanding of internationally generated adjustment costs by demonstrating a statistically significant and economically relevant effect of the real exchange rate on job creation and job destruction in U.S. manufacturing industries over the period 1973 to 1993. The responsiveness of these gross job flows to the real exchange rate reflects pervasive heterogeneity with respect to international conditions across firms, even within narrowly defined industries. We document this heterogeneity and show that the responsiveness of job flows to movements in the real exchange rate varies with the industry's openness to international trade. We also show an asymmetry in the responsiveness of job flows to the real exchange rate; appreciations play a significant role in job destruction, but job flows do not respond significantly to dollar depreciations.

download in pdf format
   (385 K)

email paper

This paper is available as PDF (385 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w7466

Published: Published as "The Real Exchange Rate and Foreign Direct Investment in the United States: Relative Wealth Vs. Relative Wage Effects", Journal of International Economics (1994).

Users who downloaded this paper also downloaded these:
Burgess and Knetter w5861 An International Comparison of Employment Adjustment to Exchange Rate Fluctuations
Baldwin, Dunne, and Haltiwanger w4726 A Comparison of Job Creation and Job Destruction in Canada and the United States
Gourinchas w6864 Exchange Rates and Jobs: What Do We Learn from Job Flows?
Davis, Haltiwanger, and Schuh w4492 Small Business and Job Creation: Dissecting the Myth and Reassessing theFacts
Saez w8037 The Optimal Treatment of Tax Expenditures
 
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