Plausibly Exogenous [674] - Trade and Skill (11/23/2021)
LHS Variable
Job postings and imports
RHS Variable
Changes in international market relative prices of trade
Source of Exogenous Variation
On January 15, 2015 the Swiss National Bank unexpectedly abandoned the exchange rate floor with the Euro, causing a 15% increase in the value of the Swiss franc, which remained relatively stable in the subsequent years. This unforeseen appreciation immediately impacted the relative price of trade, creating new incentives to import, while simultaneously reducing expected profits for firms exposed to foreign competition.
- Colella (2021), “The Effect of Trade on Skill Requirements: Evidence from Job Postings”