Title: Are gross job flows in Australia sensitive to exchange rate fluctuations?

Authors: Bill Mitchell, Jenny Myers

Addresses: Centre of Full Employment and Equity (CofFEE), Research Cottage, University of Newcastle, University Drive, Callaghan NSW 2308, Australia. ' Australian Bureau of Statistics, Canberra ACT 2617, Australia

Abstract: This article considers whether rates of job destruction and creation are influenced by exchange rate movements. It shows that gross job flows in the goods-producing sector are significantly impacted by exchange rate fluctuations, with an appreciation increasing both job creation and destruction rates and hence job reallocation. However, job destruction does not dominate the adjustment process. Trading-services sector job destruction rate is marginally and negatively responsive to exchange rates, with the remaining-services sector unresponsive to exchange rate movements.

Keywords: exchange rate fluctuations; gross job flows; job creation rates; job destruction rates; Australia.

DOI: 10.1504/IJEWE.2007.019282

International Journal of Environment, Workplace and Employment, 2007 Vol.3 No.3/4, pp.248 - 265

Published online: 06 Jul 2008 *

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