Labor market flexibility and the real exchange rate
Qingyuan Du and
Economics Letters, 2015, vol. 136, issue C, 13-18
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)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:136:y:2015:i:c:p:13-18
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