May 16th，Yao Tang (Bowdoin College)

Lecturer：Yao Tang (Bowdoin College)

Time：May, 16th, Thu, 15：30-17：00

Venue：Boxue 1120

Topic: How Did Exchange Rates Affect Employment in US Cities?

Abstract: We estimate the effects of exchange rate movements on employment in US cities between 2003 and 2010. We explore the differences in the composition of local industries to construct city-specific changes in exchange rates and estimate their effects on local employment in manufacturing industries and in nonmanufacturing industries. Controlling for year and city fixed effects, we find that a depreciation of the US dollar increased local employment in the manufacturing industries, our proxy for tradable industries. The depreciation also increased employment in the nonmanufacturing industries, the nontradable industries, Furthermore, the effects on the nonmanufacturing industries were stronger in cities that had a higher fraction of manufacturing employment, indicating the exchange rate movements' indirect employment effects through the manufacturing industries. We also consider the alternative definition of tradable industries that is broadened to include five service industries. The findings are similar.