Labour market adjustments to real exchange rate fluctuations

Authors: Bruneau, Gabriel
Advisor: Moran, Kevin
Other Title(s): Labor market adjustments to real exchange rate fluctuations
Abstract: This paper evaluates the response of employment, hours worked and wages to real exchange rate shocks in the Canadian manufacturing industries and provides an empirical study of the adjustment of employment, hours worked and wages in such industries. The analysis is based on a dynamic model applied to a panel of 21 manufacturing industries from 1987 to 2006. The net effect of the Canadian dollar's appreciation was found to be statistically significant and negative for employment, hours worked and wages, although the effect on hours worked is more pronounced. Furthermore, the negative impact of the high dependency of Canadian manufacturing industries on export, in combination with the negative effect that the appreciation have on the import of foreign inputs that are substitute to labour input, enhance the negative effects on the latter, since the substitution and theoutput channels are going in the same direction.
Document Type: Mémoire de maîtrise
Issue Date: 2008
Open Access Date: 13 April 2018
Grantor: Université Laval
Collection:Thèses et mémoires

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