An International Comparison of Employment Adjustment to Exchange Rate Fluctuations

Simon Burgess () and Michael M. Knetter

No 5861, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper evaluates the response of employment to exchange rate shocks at the industry level for the G-7 countries. Using a simple empirical framework that places little a priori structure on the pattern of response to shocks, we find the data are consistent with the view that employment in European industries, at least France and Germany, is much less influenced by exchange rate shocks and much slower to adjust to long run steady states. The United States, Japan, Canada, the United Kingdom and Italy all appear to adjust more quickly. German and Japanese employment are quite insensitive to exchange rate fluctuations, consistent with previous research on output and markup responses to exchange rates.

JEL-codes: E24 F14 (search for similar items in EconPapers)
Date: 1996-12
Note: IFM ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Published as Review of International Economics (February 1998): 151-163.

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Journal Article: An International Comparison of Employment Adjustment to Exchange Rate Fluctuations (1998)
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