Bilateral exchange rates and jobs

We study the labor market effects of realignment in fixed bilateral exchange rates, such as China's peg to the US dollar. We employ the open economy model by de Melo and Robinson to identify the core parameters of the real, trade side of the economy driving the unemployment effects of bilateral exchange rate realignment. A small open economy version of the model is explored analytically and a large multicountry version numerically. Analytics in the small open economy model show that unemployment effects of adjusting of a bilateral peg hinge on the fraction exported to and imported from the trading partner. A larger fraction exported to and a smaller fraction imported from the trading partner make it more likely that revaluation of a trading partner's currency has beneficial effects. Numerics in the large economy model show that Chinese revaluation can generate both positive and negative unemployment effects depending upon underlying parameter values. Adverse unemployment effects can go along with an improving trade balance.

Who gets the high quality jobs ten years after compulsory school?

Good work quality is crucial for employee well-being and health. Indicators of work quality are, among others, aspects of one’s work organization and learning opportunities. Based on the Job-Demands Control model we investigate if a) young employees are confronted with different combinations of job characteristics, b) cluster membership is predicted through socio-demographic and educational factors as well as positive self-evaluations and health, and c) cluster membership leads to different associations with job-related and general well-being. Based on TREE (Transition from Education to Employment) data we found three clusters of job characteristics, i.e. high resources – low demands, medium resources – medium demands, and low resources – high demands. Likelihood to be in a more favourable group was higher for females and young employees who reported more positive self-evaluations and higher learning efforts after compulsory school. Young employees in more favourable groups also reported higher levels of job-related and general well-being.