Open access
Date
2015-06Type
- Working Paper
ETH Bibliography
yes
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Abstract
This paper examines the linkages between real exchange rate movements and firms’ skill demand. Real exchange rate movements may affect unskilled workers differently than skilled workers because of skill-specific adjustment costs, or because exchange rates lead to changes in relative factor prices and firms’ competition intensity. Using panel data on Swiss manufacturers, we find that an appreciation increases high-skilled and reduces low-skilled employment in most firms, while total employment remains roughly unchanged. We find evidence that exchange rates influence firms’ skill intensity because they affect outsourcing activities, innovation efforts, and firms’ compensation schemes. Show more
Permanent link
https://doi.org/10.3929/ethz-a-010479940Publication status
publishedJournal / series
KOF Working PapersVolume
Publisher
KOF Swiss Economic Institute, ETH ZurichSubject
LABOUR MARKET AND EMPLOYMENT; Firms’ Foreign Exposure; BUSINESS ORGANIZATIONS; ARBEITSMARKT UND BESCHÄFTIGUNG; Real Exchange Rates; Employment; UNTERNEHMENSORGANISATIONEN; SCHWEIZ (MITTELEUROPA). SCHWEIZERISCHE EIDGENOSSENSCHAFT; WIRTSCHAFTLICHER WETTBEWERB; SWITZERLAND (CENTRAL EUROPE). SWISS CONFEDERATION; Labor Demand; ECONOMIC COMPETITION; Skill Intensity; WECHSELKURS; EXCHANGE RATEOrganisational unit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
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ETH Bibliography
yes
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