Real Exchange Rates and Competitiveness
The Political Economy of Skill Formation, Wage Compression, and Electoral Systems
Bibliographic Data
| ID | 3307129 |
|---|---|
| Authors | Trine Iversen (0000-0002-6652-5147, Harvard University Press), Torben Iversen, David Soskice (0000-0002-0643-8869, University of Oxford) |
| Year | 2010 |
| Volume | 104 |
| Issue | 3 |
| Pages | 601-623 |
| Publication date | 2010-08-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | American Political Science Review (JOURNAL) |
| Journal identifiers | ISSN: 0003-0554 • E-ISSN: 1537-5943 |
| Publisher | Cambridge University Press (CUP) (PUBLISHER) |
| DOI | 10.1017/s0003055410000304 |
| OpenAlex | W2102309016 |
| Language | EN |
| Citations received | 32 |
| References cited | 40 |
A major puzzle in the open economy literature is why some countries have persistently higher real exchange rates than others. Even more puzzling is the fact that countries with high real exchange rates are strong export performers. We solve both puzzles with a model that integrates two central debates in the comparative political economy of advanced economies: one linking wage bargaining, incomes policy, and competitiveness, and the other linking partisanship, political institutions, and redistribution. We bring the two together by emphasizing the role of skill formation. We argue that union centralization is necessary for wage restraint and training on a large scale, but this in turn requires a political coalition that subsidizes such training. When both are present, wage restraint generates external competitiveness, whereas wage compression pushes up sheltered prices and hence the real exchange rate, and vice versa. We test the argument on data on export performance and real exchange rates
Argument (complex analysis · Economics · Exchange rate · Labour economics · Monetary economics · Open economy · Political science · Politics · Redistribution (election · Wage · Economic Policies and Impacts · Global Financial Crisis and Policies · Global trade and economics
Unionization and the partisan effect on income inequality
Who Wants What?
On the (Ir)relevance of Skill Specificity for Social Insurance
Pork-Barrel Politics and Electoral Reform
Developmental states and undervalued exchange rates in the developing world
Politics for markets
The mysterious overvaluation of KRW in the 1990s
They may not have the skills, but they have the desire
Skills, Education and Human Capital in the Czech Republic in tThe View of OECD-Piaac Survey
Theories of policy change and variation reconsidered
L'état entre politics, policies et polity
Economic Adaptability in the Absence of Democratic Corporatism
Middle-Income Trap and the Baltic States
When Multi-Method Research Subverts Methodological Pluralism—or, Why We Still Need Single-Method Research
Between Science and Engineering
Deal or no deal
Between Science and Engineering
Ripples from the First Wave
Measures of vote-seat disproportionality for incomplete data
Does democratization lower consumer prices? Regime type, prices, and the consumer–producer tradeoff
Labor Standards, Labor Endowments, and the Evolution of Inequality
Trade Liberalization and Labor Market Institutions
Private Debt and the Anglo-Liberal Growth Model
Workers or Consumers? A Survey Experiment on the Duality of Citizens’ Interests in the Politics of Trade
Information, Inequality, and Mass Polarization
Reading, Writing, and the Regrettable Status of Education Research in Comparative Politics
Endogenous Credible Commitment and Party Competition over Redistribution under Alternative Electoral Institutions
Party Control, Party Competition and Public Service Performance
Taxing the Tails in a Global Economy
Varieties of capitalism and growth regimes
Protecting the unemployed
Markets and Manpower
Wage Determination
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
The citizen and the State
Small States in World Markets
Varieties of Capitalism
How Institutions Evolve
The Wage Earners' Welfare State Revisited
The Purchasing-Power Parity Doctrine
Real Exchange Rate Behavior
Is Official Exchange Rate Intervention Effective
Theoretical Notes on Trade Problems
Mixed Signals
The three worlds of welfare capitalism
Bringing Capital Back In, or Social Democracy Reconsidered
Equality, Employment, and Budgetary Restraint
The Politics of Growth
Determinants of public education spending in 21 OECD democracies, 1980–2001
Traders, Teachers, and Tyrants
Partisan Politics, the Welfare State, and Three Worlds of Human Capital Formation
Wage-Setting Institutions and Pay Inequality in Advanced Industrial Societies
Short versus Long Coalitions
Centralized Bargaining and Wage Restraint
Majoritarian Electoral Systems and Consumer Power
Trade and the variety of democratic institutions
Wage Inequality and Varieties of Capitalism
What To Do (and Not to Do) with Time-Series Cross-Section Data
The Purchasing Power Parity Debate
Proportionality, disproportionality and electoral systems
Electoral Institutions and the Politics of Coalitions
Building Strategic Capacity
Wage Formation and the Economy
Economic Interests and the Origins of Electoral Systems
| Unique citing works | 32 |
|---|---|
| Citations per year | 2,29 |
| Citation span | 2012 - 2023 (12) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 32 |