Exchange Rate Regimes, Trade, and the Wage Comovements
AbstractThe introduction of exchange rate regimes into the standard Ricardian model of trade implies stronger positive nominal wage comovements between trading countries that fix their bilateral exchange rates. Panel regression results based on data from OECD countries from 1973 to 2010 suggest that countries in the European Monetary Union (EMU) experienced stronger positive wage comovements with their main trade partners. In comparison, the positive wage comovements between countries engaged in non-currency-union pegs were weaker. When we restrict the regression to the subsample of the EMU countries, we find a significant increase in wage comovements after these countries joined the EMU in 1999 compared to the pre-euro era.
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 Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba in its series Tsukuba Economics Working Papers with number 2011-001.
Date of creation: Apr 2011
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-30 (All new papers)
- NEP-INT-2011-04-30 (International Trade)
- NEP-LAB-2011-04-30 (Labour Economics)
- NEP-MON-2011-04-30 (Monetary Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Yoshinori Kurokawa & Jiaren Pang & Yao Tang, 2013. "Exchange Rate Regimes and Nominal Wage Comovements in a Dynamic Ricardian Model," Tsukuba Economics Working Papers 2013-005, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yoshinori Kurokawa).
If references are entirely missing, you can add them using this form.