Exchange rates and wages

Arbeitspapier

Understanding the effects of exchange rate fluctuations across the population is important for increasingly globalized economies. Previous studies using industry aggregate data have found that industry wages are significantly more responsive than industry employment to exchange rate changes. We offer an explanation for this paradoxical finding. Using Current Population Survey data for 1976 through 1998, we document that the main mechanism for exchange rate effects on wages occurs through job turnover and the strong consequences this has for the wages of workers undergoing such job transitions. By contrast, workers who remain with the same employer experience little, if any, wage impacts from exchange rate shocks. In addition, we find that the least educated workers

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Staff Report ; No. 116

Classification and Topics

• Classification: Wirtschaft ; Foreign Exchange ; Wages, Compensation, and Labor Costs: General ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
• Subject: who also have the most frequent job changes ; Wechselkurs ; Lohn ; Arbeitsmarkt ; Arbeitsnachfrage ; Qualifikation ; Schätzung ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Goldberg, Linda ; Tracy, Joseph
• Event: Veröffentlichung
• (who): Federal Reserve Bank of New York
• (where): New York, NY
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/60579
• Last update: 10.03.2025, 11:43 AM CET