TY  - JOUR
AU  - Klein,Michael W.
AU  - Schuh,Scott
AU  - Triest,Robert K.
TI  - Job Creation, Job Destruction, and the Real Exchange Rate
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7466
PY  - 2000
Y2  - January 2000
UR  - http://www.nber.org/papers/w7466
L1  - http://www.nber.org/papers/w7466.pdf
N1  - Author contact info:
Michael W. Klein
Fletcher School
Tufts University
Medford, MA 02155
Tel: (617) 627-2718
Fax: (617) 627-3712
E-Mail: michael.klein@tufts.edu

Scott Schuh
Federal Reserve Bank of Boston
600 Atlantic Avenue, T-9
Boston, MA  02210
Tel: 617-973-3941
Fax: 617-619-7541
E-Mail: Scott.Schuh@bos.frb.org

Robert Triest
Federal Reserve Bank of Boston
600 Atlantic Ave.
Boston, MA  02210
Tel: 617-973-3431
E-Mail: Robert.Triest@bos.frb.org
AB  - 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.
ER  -