Exchange Rates and Local Labor Markets

35 Pages Posted: 26 Aug 1999

See all articles by Linda S. Goldberg

Linda S. Goldberg

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

Joseph S. Tracy

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

Multiple version iconThere are 2 versions of this paper

Date Written: February 1999

Abstract

We document the consequences of real exchange rate movements for the employment, hours, and hourly earnings of workers in manufacturing industries across individual states. Exchange rates have statistically significant wage and employment implications in these local labor markets. The importance and size of these dollar-induced effects vary considerably across industries and are more pronounced in some U.S. regions. In addition to the importance of exchange rate shocks, we confirm prior research results showing that relatively strong local conditions drive up wages in local industries, while anticipated future (positive) local shocks reduce current wages.

JEL Classification: F31, F30, F40, J30, E24

Suggested Citation

Goldberg, Linda S. and Tracy, Joseph, Exchange Rates and Local Labor Markets (February 1999). NBER Working Paper No. 6985; FRB of New York Staff Report No. 63. Available at SSRN: https://ssrn.com/abstract=163156 or http://dx.doi.org/10.2139/ssrn.163156

Linda S. Goldberg (Contact Author)

Federal Reserve Bank of New York ( email )

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National Bureau of Economic Research (NBER)

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Joseph Tracy

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States
212-720-6344 (Phone)
212-720-2630 (Fax)

National Bureau of Economic Research (NBER) ( email )

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United States

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