EconPapers    
Economics at your fingertips  
 

Adjustments of regular and non-regular workers to exogenous shocks: Evidence from exchange rate fluctuation

Izumi Yokoyama, Kazuhito Higa and Daiji Kawaguchi ()
Additional contact information
Izumi Yokoyama: Graduate School of Economics, Hitotsubashi University
Kazuhito Higa: Economic and Social Research Institute, Cabinet Office

No 18-E-2, Bank of Japan Working Paper Series from Bank of Japan

Abstract: We investigate the heterogeneous adjustments of regular and non-regular workers exploiting the exchange rate fluctuation and heterogeneous dependence on international trade across firms as a source of exogenous variation. An analysis of panel data of Japanese manufacturers reveals that the appreciation of Japanese Yen spontaneously decreases the sales of exporters and the employment of non-regular workers, but it moderately reduces the employment of regular workers with a time lag. Firms relying heavily on exporting tend to implement more significant adjustments of non-regular employment in response to exchange rate shocks. This finding provides support for the claim that firms are likely to adjust non-regular workers to absorb exogenous shocks and to insulate regular workers from the shocks in an uncertain business environment.

Keywords: Exchange Rate; Permanent Shocks; Temporary Shocks (search for similar items in EconPapers)
JEL-codes: E24 F16 F31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: 2018-03-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.boj.or.jp/en/research/wps_rev/wps_2018/data/wp18e02.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boj:bojwps:wp18e02

Access Statistics for this paper

More papers in Bank of Japan Working Paper Series from Bank of Japan Contact information at EDIRC.
Bibliographic data for series maintained by Bank of Japan ().

 
Page updated 2019-11-11
Handle: RePEc:boj:bojwps:wp18e02