Exchange Rates and Wages in an Integrated World / Antonio Spilimbergo, Prachi Mishra.

Format:

Book

Government document

Author/Creator:

Spilimbergo, Antonio.

Contributor:

Mishra, Prachi.

International Monetary Fund.

Series:

IMF Working Papers; Working Paper ; No. 2009/044

IMF Working Papers

Language:

English

Subjects (All):

Foreign exchange rates.

Physical Description:

42 p.

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2009.

Language Note:

English

Summary:

We analyze how the pass-through from exchange rate to domestic wages depends on the degree of integration between domestic and foreign labor markets. Using data from 66 countries over the period 1981–2005, we find that the elasticity of domestic wages to real exchange rate is 0.1 after a year for countries with high barriers to external labor mobility, but about 0.4 in countries with low barriers to mobility. The results are robust to the inclusion of various controls, different measures of exchange rates, and concepts of labor market integration. These findings call for including labor mobility in macro models of external adjustment.

Contents:

Intro

Contents

I. Introduction

II. Exchange Rates and Labor Mobility: Theoretical Framework

III. Empirical Specification

IV. Data

V. Results for Sending Countries

VI. Results for Receiving Country-The Case of the U.S.

VII. Exchange Rate and Migration

VIII. Conclusions

Tables

1. Effect of Exchange Rates on Wages

2. Effect of Exchange Rates on Wages-Interaction with Labor Market Integration

3. Effect of Exchange Rates on Wages-Interaction with Labor Market Integration: Alternative Measures of Exchange Rates

4. Effect of Exchange Rates on Wages-Interaction with Other Measures of Integration

5. Effect of Exchange Rates on Wages-Interactions-Developing Countries

6. Effect of Exchange Rates on Wages-Migrants Defined by Foreign-Born

7. Effect of Exchange Rates on Wages-Interaction with Labor Market Integration - Control for Composition of Trade

8. Effect of Exchange Rates on Wages-Alternative Sources of Data on Wages

9. Effect of Exchange Rates on Wages-Low and High Skill Wages

10. Effect of Exchange Rates on U.S. Immigrant Wages-Interactions

11. Effect of Exchange Rates on Migration

Figure

1. Depreciation of Exchange Rate and Wages

References

Appendix

Appendix tables

1. Countries in Sample and Top Destination Countries, 1981-2005

2. Years in Sample, 1981-2005

3. Summary Statistics

4. Panel Unit Root Test

5. Effect of Exchange Rates on Wages: Migrants Defined by Foreign-Born: Sample-Selection

6. List of Occupations: Freeman-Oostendorp Occupational Wages Around the World Database

7. Effect of Exchange Rates on U.S. Immigrant Wages-Interactions: Sample Selection.

Notes:

Bibliographic Level Mode of Issuance: Monograph

Includes bibliographical references.

Description based on print version record.

ISBN:

9786612842665

9781462338627

1462338623

9781451990300

1451990308

9781451871920

1451871929

9781282842663

1282842668

OCLC:

469154536