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Labor market flexibility and the real exchange rate

Qingyuan Du and Qing Liu

Economics Letters, 2015, vol. 136, issue C, 13-18

Abstract: This paper studies how labor market flexibility can affect the real exchange rate. Both theoretically and empirically, we find that a more flexible (rigid) labor market is associated with a lower (higher) real exchange rate.

Keywords: Real exchange rate; Labor market rigidity; Labor re-allocation (search for similar items in EconPapers)
JEL-codes: F3 F4 J3 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1016/j.econlet.2015.08.012

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