Employment Versus Wage Adjustment and the U.S. Dollar

39 Pages Posted: 3 Nov 2008

See all articles by José Manuel Campa

José Manuel Campa

University of Navarra - Madrid Campus - IESE Business School; National Bureau of Economic Research (NBER)

Linda S. Goldberg

Federal Reserve Bank of New York; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: April 1999

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 onhours 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 toindustry export orientation or changes in overall external orientation. Industries with low price overcost markups and those with a less skilled workforce exhibit relatively larger employment elasticities but lower wage elasticities.

Suggested Citation

Campa, José Manuel and Goldberg, Linda S., Employment Versus Wage Adjustment and the U.S. Dollar (April 1999). NYU Working Paper No. EC-99-07. Available at SSRN: https://ssrn.com/abstract=1293089

José Manuel Campa (Contact Author)

University of Navarra - Madrid Campus - IESE Business School ( email )

Camino del Cerro del Aguila 3
Madrid, 28023
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National Bureau of Economic Research (NBER)

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Linda S. Goldberg

Federal Reserve Bank of New York ( email )

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New York, NY 10045
United States
212-720-2836 (Phone)
212-720-6831 (Fax)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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