{
  "title": "The Real Exchange Rate and Employment in China",
  "publication": "IMF Working Papers, June 1, 2011",
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  "summary": "We examine the impact of real exchange rate fluctuations on sectoral and regional employment in China from 1980 to 2008. In contrast to theoretical predictions, employment in both the tradable and non-tradable sectors contracts following a real appreciation.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Authors: Mai Dao, Ruo Chen\n- Date: June 1, 2011\n- Scope: Impact of real exchange rate fluctuations on sectoral and regional employment in China from 1980 to 2008.\n- Main empirical result: Employment in both the tradable and non-tradable sectors contracts following a real appreciation.\n- Robustness: Results hold across different sub-samples and levels of sectoral disaggregation, and are more pronounced for regions with higher export exposure.\n- Proposed transmission channel: Importance of services as intermediate input in exportable production; tested using regional input-output tables linked with employment data at the region-sector level."
    },
    {
      "heading": "Key findings",
      "content": "- Employment contracts in both tradable and non-tradable sectors following a real appreciation (1980–2008).\n- Effects are:\n  - Robust across sub-samples.\n  - Robust across different levels of sectoral disaggregation.\n  - More pronounced in regions with higher export exposure.\n- Empirical channel evidence:\n  - Services operate as important intermediate inputs in exportable production, providing a mechanism for exchange rate impacts to affect non-tradable sector employment."
    },
    {
      "heading": "Methodology (as described)",
      "content": "- Period covered: 1980 to 2008.\n- Data and tests:\n  - Regional input-output tables linked with employment data at the region-sector level to test the intermediate-input channel.\n  - Sectoral and regional employment analysis across varying levels of disaggregation and sub-samples."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Labor market adjustment: Results have important implications for China’s labor market adjustment if the Chinese RMB strengthens in the future.\n- To mitigate short-run labor market adjustment costs:\n  - Appropriate demand management should play an important role.\n  - Structural reforms in the non-traded sectors should play an important role.\n\n---\n\n Content in this bundle\n\n- wp11148\n  - wp11148 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp11148 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-real-exchange-rate-and-employment-in-china-24992"
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    "Authors: Mai Dao, Ruo Chen",
    "Published: June 1, 2011",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781455269464.001",
    "Authors: Mai Dao, Ruo Chen",
    "Date: June 1, 2011",
    "Scope: Impact of real exchange rate fluctuations on sectoral and regional employment in China from 1980 to 2008.",
    "Main empirical result: Employment in both the tradable and non-tradable sectors contracts following a real appreciation.",
    "Robustness: Results hold across different sub-samples and levels of sectoral disaggregation, and are more pronounced for regions with higher export exposure.",
    "Proposed transmission channel: Importance of services as intermediate input in exportable production; tested using regional input-output tables linked with employment data at the region-sector level.",
    "Employment contracts in both tradable and non-tradable sectors following a real appreciation (1980–2008).",
    "Effects are:",
    "Empirical channel evidence:",
    "Period covered: 1980 to 2008.",
    "Data and tests:",
    "Labor market adjustment: Results have important implications for China’s labor market adjustment if the Chinese RMB strengthens in the future.",
    "To mitigate short-run labor market adjustment costs:",
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