01725cas a2200253 a 4500 AALejournalIMF005659 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451871920 1018-5941 BD-DhAAL BD-DhAAL Spilimbergo, Antonio. Exchange Rates and Wages in an Integrated World / Antonio Spilimbergo, Prachi Mishra. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (44 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We analyze how the pass-through from exchange rate to domestic wages depends on the degree of integration between domestic and foreign labor markets. Using data from 66 countries over the period 1981-2005, we find that the elasticity of domestic wages to real exchange rate is 0.1 after a year for countries with high barriers to external labor mobility, but about 0.4 in countries with low barriers to mobility. The results are robust to the inclusion of various controls, different measures of exchange rates, and concepts of labor market integration. These findings call for including labor mobility in macro models of external adjustment. Mode of access: Internet Mishra, Prachi. IMF Working Papers; Working Paper ; No. 2009/044 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/044/001.2009.issue-044-en.xml IMF e-Library