The Effects of Public Debt on Labor Demand in the United States

Carlos I. Garcia-Jimenez and Ashok Mishra ()

No 56361, 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida from Southern Agricultural Economics Association

Abstract: The relationship between appreciation of the exchange rate and employment is investigated in the period 1980-2008 for the United States. Previous literature has found a negative relationship, studying as channels of transmission the role of exports, substitution of factors of production, terms of trade, openness, and productivity. This study endeavors to shed some light on the role of government debt on determining the level of employment through the exchange rate. The mechanism of transmission is defined. The model is derived from a standard Cobb Douglas production function having government debt affecting the growth of productivity. Exchange rate appreciations and increasing public debt were found to be detrimental to employment.

Keywords: Financial Economics; International Development; Labor and Human Capital; Political Economy; Public Economics (search for similar items in EconPapers)
Pages: 25
Date: 2010-02-06
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea10:56361

DOI: 10.22004/ag.econ.56361

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