HOW DID EXCHANGE RATES AFFECT EMPLOYMENT IN U.S. CITIES?

We estimate the effects of exchange rate on U.S. employment, exploiting differences in industrial composition across major cities. We find that a 1% depreciation of export-weighted real exchange rate has a positive 0.98% direct effect on manufacturing employment. Its indirect effect on local nonmanu...

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Publicado en:Contemporary Economic Policy Vol. 34; no. 4; pp. 678 - 698
Autores principales: Huang, Haifang, Tang, Yao
Formato: Artículo
Publicado: Wiley-Blackwell Oct2016
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: HOW DID EXCHANGE RATES AFFECT EMPLOYMENT IN U.S. CITIES?
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          Huang, Haifang
          Tang, Yao
        affil:
          Department of Economics, University of Alberta, Edmonton AB, T6G 2H4, Canada
          Department of Economics, Bowdoin College, Brunswick ME, 04011‐8497
      su:
        United States
        Unemployment
        Manufacturing industries
        Externalities
        Employment
        Foreign exchange rates
        Depreciation
      sug:
        subj:
          Unemployment
          Manufacturing industries
          Externalities
          Employment
          United States
          Foreign exchange rates
          Depreciation
      ab: We estimate the effects of exchange rate on U.S. employment, exploiting differences in industrial composition across major cities. We find that a 1% depreciation of export-weighted real exchange rate has a positive 0.98% direct effect on manufacturing employment. Its indirect effect on local nonmanufacturing employment rises with the size of the local manufacturing sector, consistent with the hypothesis that there exists a local spillover from the tradable to the nontradable sector. In cities with heavy concentration of manufacturing employment, the indirect effect is statistically significant and about 60% as large as the direct effect measured by the number of jobs. ( JEL F3, F1, J2)
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    language: English
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