The Effects of Public Debt on Labor Demand in the United States
AbstractThe relationship between appreciation of the exchange rate and employment is investigated in the period 1980-2008 for the United States. Previous literature has found a negative relationship, studying as channels of transmission the role of exports, substitution of factors of production, terms of trade, openness, and productivity. This study endeavors to shed some light on the role of government debt on determining the level of employment through the exchange rate. The mechanism of transmission is defined. The model is derived from a standard Cobb Douglas production function having government debt affecting the growth of productivity. Exchange rate appreciations and increasing public debt were found to be detrimental to employment.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Southern Agricultural Economics Association in its series 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida with number 56361.
Date of creation: 06 Feb 2010
Date of revision:
Unemployment rate; government; budget deficit; exchange rate; trade deficit; FDI; Financial Economics; International Development; Labor and Human Capital; Political Economy; Public Economics; F31; J01; E24; E62;
Find related papers by JEL classification:
- F31 - International Economics - - International Finance - - - Foreign Exchange
- J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stewart Ngandu, 2008. "Exchange Rates And Employment," South African Journal of Economics, Economic Society of South Africa, vol. 76(s2), pages S205-S221, 08.
- Nguyen Thanh Xuan & Yuqing Xing, 2008. "Foreign direct investment and exports," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(2), pages 183-197, 04.
- Francesco Nucci & Alberto Franco Pozzolo, 2009.
"Exchange Rate, Employment and Hours: What Firm-Level Data Say,"
Mo.Fi.R. Working Papers
12, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
- Pozzolo, Alberto Franco & Nucci, Francesco, 2008. "Exchange Rate, Employment and Hours: What Firm-Level Data Say," Economics & Statistics Discussion Papers esdp08049, University of Molise, Dept. SEGeS.
- Sven Arndt, 2006.
"Regional Currency Arrangements in North America,"
121, Oesterreichische Nationalbank (Austrian Central Bank).
- Greenaway, David & Hine, Robert C. & Wright, Peter, 1999. "An empirical assessment of the impact of trade on employment in the United Kingdom," European Journal of Political Economy, Elsevier, vol. 15(3), pages 485-500, September.
- Robert A. Blecker, 2007.
"The Economic Consequences of Dollar Appreciation for US Manufacturing Investment: A Time-Series Analysis,"
International Review of Applied Economics,
Taylor and Francis Journals, vol. 21(4), pages 491-517.
- Robert A. Blecker, 2006. "The Economic Consequences of Dollar Appreciation for US Manufacturing Investment: A Time-Series Analysis," Working Papers 2006-07, American University, Department of Economics.
- Michael W. Klein & Scott Schuh & Robert K. Triest, 1999.
"Job creation, job destruction, and the real exchange rate,"
99-11, Federal Reserve Bank of Boston.
- Klein, Michael W. & Schuh, Scott & Triest, Robert K., 2003. "Job creation, job destruction, and the real exchange rate," Journal of International Economics, Elsevier, vol. 59(2), pages 239-265, March.
- Michael W. Klein & Scott Schuh & Robert K. Triest, 2000. "Job Creation, Job Destruction, and the Real Exchange Rate," NBER Working Papers 7466, National Bureau of Economic Research, Inc.
- Zhenhui Xu, 2008. "China's Exchange Rate Policy and Its Trade Balance with the US," Review of Development Economics, Wiley Blackwell, vol. 12(4), pages 714-727, November.
- Carlos Vargas-Silva, 2007.
"The Tale of Three Amigos: Remittances, Exchange Rates and Money Demand in Mexico,"
0704, Sam Houston State University, Department of Economics and International Business.
- Carlos Vargas-Silva, 2009. "The Tale of Three Amigos: Remittances, Exchange Rates, and Money Demand in Mexico," Review of Development Economics, Wiley Blackwell, vol. 13(1), pages 1-14, 02.
- Raimundo Soto, 2008. "Unemployment and Real Exchange Rate Dynamics in Latin American Economies," Documentos de Trabajo 337, Instituto de Economia. Pontificia Universidad Católica de Chile..
- Xiaolan Fu & V. N. Balasubramanyam, 2005. "Exports, Foreign Direct Investment and Employment: The Case of China," The World Economy, Wiley Blackwell, vol. 28(4), pages 607-625, 04.
- Koray, Faik & Lastrapes, William D, 1989. "Real Exchange Rate Volatility and U.S. Bilateral Trade: A VAR Approach," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 708-12, November.
- Lastrapes, William D. & Koray, Faik, 1990. "Exchange rate volatility and U.S. multilateral trade flows," Journal of Macroeconomics, Elsevier, vol. 12(3), pages 341-362.
- Frenkel, Roberto & Ros, Jaime, 2006. "Unemployment and the real exchange rate in Latin America," World Development, Elsevier, vol. 34(4), pages 631-646, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.