Job creation, job destruction, and international competition: a literature review

Michael Klein, Scott Schuh and Robert Triest

No 02-7, Working Papers from Federal Reserve Bank of Boston

Abstract: This paper is a chapter in our forthcoming monograph, Job Creation, Job Destruction, and International Competition (W.E. Upjohn Institute, 2003), and expands on the ideas advanced in Klein, Schuh, and Triest (2003). The chapter provides an extensive review of the literature that studies the connection between international factors, such as real exchange rates and trade agreements, and the domestic labor market. Until recently, the literature has focused on the effects of international factors on net employment at aggregate levels or in selected import-competing industries. In the long run, aggregate net employment largely is unaffected by international factors, whereas these factors have important allocative effects in the short and long run, both between and within detailed industries. Thus, it is appropriate to study the components of net employment - gross job creation and destruction - when measuring the impact of international factors on labor markets. Examining gross job and worker turnover associated with changes in international factors raises questions about the accuracy of prior estimates of adjustment costs associated with international factors because gross flows are an order of magnitude larger than net employment flows.

Keywords: Employment (Economic theory); Unemployment; Foreign exchange rates; Labor turnover; Labor market (search for similar items in EconPapers)
Date: 2002
New Economics Papers: this item is included in nep-ifn and nep-lab
References: Add references at CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://www.bostonfed.org/economic/wp/wp2002/wp027.htm (text/html)
http://www.bostonfed.org/economic/wp/wp2002/wp027.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedbwp:02-7

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Boston Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Spozio ().