Employment versus Wage Adjustment and the US Dollar

Jose Campa and Linda Goldberg

No 6749, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using two decades of annual data, we explore the links between real exchange rates and employment, wages and overtime activity in specific U.S. manufacturing industries. Across two-digit industry levels of aggregation, exchange rate movements do not have large effects on numbers of jobs or on hours worked. More substantial effects are picked up in industry wages, especially for industries characterized by low price-over-cost markup ratios, and in overtime wages and overtime employment. The industry-by-industry pattern of wage responsiveness is not strongly related to industry export orientation or changes in overall external orientation. Industries with low price-over-cost markups and those with a less skilled workforce exhibit relatively larger employment elasticities but lower wage elasticities.

JEL-codes: F3 F31 (search for similar items in EconPapers)
Date: 1998-10
New Economics Papers: this item is included in nep-eec and nep-ltv
Note: IFM
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Citations: View citations in EconPapers (10)

Published as Review of Economics and Statistics August 2001, Vol. 83, No. 3, Pages 477-489: 477-489.

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Related works:
Working Paper: Employment versus wage adjustment and the U.S. dollar (1998)
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