Resource title

Labour Demand and Exchange Rate Volatility

Resource image

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Resource description

The purpose of this paper is to assess under what conditions ex- change rate volatility exerts a positive effect on a firm's labour de- mand. As the exchange rate volatility increases, so does the value of the export option provided the firm under study is exible. Flexibility is important because it gives the firm option value. Higher volatility increases the potential gains from trade and may increase the demand for labour. This may explain part of the mixed empirical findings regarding the effects of exchange rate risk on labour demand and international trade.

Resource author

Udo Broll, Sabine Hansen

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/22155

Resource license

Adapt according to the presented license agreement and reference the original author.