Mishra, Prachi; Spilimbergo, Antonio - In: American Economic Journal: Macroeconomics 3 (2011) 4, pp. 53-84
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 0.15 after a year...