Saturday, November 9, 2013

Sectoral labor market exibility in a small open economy

Miguel Portela
(Universidade do Minho e NIPE)

Abstract: We compute an index of sectoral labor market flexibility and use it to estimate the effect of exchange rate movements on employment in Portugal. Our sectoral index indicates that manufacturing labor markets have become more flexible in recent years, albeit at a different pace from what the OECD's EPL index suggests. Furthermore, our index shows that there is heterogeneity at the sector level. Our econometric application indicates that our measure of sectoral labor market flexibility, alongside the level of technology and trade openness, is relevant for understanding the reaction of employment to movements in exchange rates.

Notice: ISEG 2S Seminar Series
Saturday, November 9, 2013
Time: 11h30
Room: Sala Santander, Edificio Quelhas, ISEG