Compensating wages under different exchange rate regimes
This paper analyses the interconnectedness between developing countries' domestic wage levels and their exchange rate choices. The theoretical model illustrates that differences in domestic wage levels are related to countries' exchange rate regimes. In particular, the level of domestic wages increases with the rigidity of the exchange rate regime. The empirical model explores the determinants of the domestic wage level in a cross-section of 38 developing countries. In line with the theoretical model, the economies under review experience a rise in the domestic wage level with an increase in the rigidity of their exchange rate regime.
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- Atish R. Ghosh & Anne-Marie Gulde & Jonathan D. Ostry & Holger C. Wolf, 1997.
"Does The Nominal Exchange Rate Regime Matter?,"
97-09, New York University, Leonard N. Stern School of Business, Department of Economics.
- Jonathan David Ostry & Anne Marie Gulde & Atish R. Ghosh & Holger C. Wolf, 1995. "Does the Nominal Exchange Rate Regime Matter?," IMF Working Papers 95/121, International Monetary Fund.
- Atish R. Ghosh & Anne-Marie Gulde & Jonathan D. Ostry & Holger C. Wolf, 1997. "Does the Nominal Exchange Rate Regime Matter?," NBER Working Papers 5874, National Bureau of Economic Research, Inc.
- John M. Abowd & Orley C. Ashenfelter, 1981.
"Anticipated Unemployment, Temporary Layoffs, and Compensating Wage Differentials,"
in: Studies in Labor Markets, pages 141-170
National Bureau of Economic Research, Inc.
- John Abowd & Orley Ashenfelter, 1980. "Anticipated Unemployment, Temporary Layoffs and Compensating Wage Differentials," Working Papers 517, Princeton University, Department of Economics, Industrial Relations Section..
- Jeffrey A. Frankel, 1999. "No Single Currency Regime is Right for All Countries or At All Times," NBER Working Papers 7338, National Bureau of Economic Research, Inc.
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