Exchange Rate Regime Flexibility and Firms' Employment 

10:00-11:30, Saturday, November 23, 2024

I-206, Boxue Building

Dr. Qingyuan Du is currently a senior lecturer at the Department of Economics, Monash University. He obtained his PhD from Columbia University in 2011. His main research fields are international economics and macroeconomics. He has been awarded grants by the Australian Research Council (ARC). His works have appeared in Review of Economic Dynamics, Journal of International Economics, among others.

Personal Website: https://research.monash.edu/en/persons/qingyuan-du

This paper examines how exchange rate regime flexibility impacts the allocation of labor across firms. Specifically, we investigate how differences in labor-intensity or capital-intensity in production affect employment decisions under various degrees of exchange rate regime flexibility. In a simple theoretical model, we show that firms utilizing more labor-intensive production technologies are more likely to expand their employment when the exchange rate they face becomes less flexible. In contrast, firms employing more capital-intensive technology tend to hire more workers when the exchange rate is more flexible. We test our theory using granular firm-level data from China and provide robust evidence supporting the theoretical predictions

For more information of the seminar, scan the following QR code(s) to join Tencent QQ group (904 544 292) or WeChat group named "IAER Seminar (5)", please.

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(QR code is valid until November 26, 2024)