Job Creation, Job Destruction, and the Real Exchange Rate

By Michael W. Klein, Scott Schuh, Robert K. Triest. 2003

236 citations recorded by the source corpus.

This paper contributes to an understanding of internationally generated adjustment costs by demonstrating a statistically significant and economically relevant effect of the real exchange rate on job creation and job destruction in U.S. manufacturing industries over the period 1973 to 1993. The responsiveness of these gross job flows to the real exchange rate reflects pervasive heterogeneity with respect to international conditions across firms, even within narrowly defined industries. We document this heterogeneity and show that the responsiveness of job flows to movements in the real exchange rate varies with the industry's openness to international trade. We also show an asymmetry in the responsiveness of job flows to the real exchange rate; appreciations play a significant role in job destruction, but job flows do not respond significantly to dollar depreciations.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/200065cae556ae09ce097ebf57959f94c6fd9cf0

Citations in the corpus

• Trade and Employment: Stylized Facts and Research Findings (2005, unknown): “Klein, Schuh and Triest (2003) use establishment panel data to analyze how the pattern of gross job flows in the US is affected by the path of the real exchange rate.”
• The impact of international outsourcing on individual employment security: A micro-level analysis (2008, unknown): “…and development expenditure are provided by the OECD ANBERD database.10 Industry-level studies by authors such as Davidson and Matusz (2005), Klein et al. (2003) Kletzer (2000) and Kletzer (2004) highlight the relevance of export orientation and international competition as determinants of…”
• International Trade and Macroeconomic Dynamics with Heterogeneous Firms (2005, unknown): “[45] Klein, M.”