TY  - BOOK
AU  - Spilimbergo,Antonio
AU  - Mishra,Prachi
AU  - Spilimbergo,Antonio
TI  - Exchange Rates and Wages in an Integrated World
T2  - IMF Working Papers; Working Paper
SN  - 1451871929 :
SN  - 1018-5941
PY  - 2009///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Exchange Rate
KW  - imf
KW  - Labor Market Integration
KW  - Real Exchange Rate
KW  - Wage
KW  - Australia
KW  - Germany
KW  - Italy
KW  - Netherlands
N2  - We analyze how the pass-through from exchange rate to domestic wages depends on the degree of integration between domestic and foreign labor markets. Using data from 66 countries over the period 1981-2005, we find that the elasticity of domestic wages to real exchange rate is 0.1 after a year for countries with high barriers to external labor mobility, but about 0.4 in countries with low barriers to mobility. The results are robust to the inclusion of various controls, different measures of exchange rates, and concepts of labor market integration. These findings call for including labor mobility in macro models of external adjustment
UR  - http://elibrary.imf.org/view/IMF001/09971-9781451871920/09971-9781451871920/09971-9781451871920.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451871920
ER  -