Exchange rate pass-through to wages via International labor mobility channel Evidence from Turkey

Official URL: https://risc01.sabanciuniv.edu/record=b2748686_(Table of contents)

When researchers try to analyze the effect of ERPT on any given economy they are focusing on two different channels that ERPT can effect: Market power and the cost channel. In the cost channel, they focus heavily on the import price, the export price in which they may contain high import content, or on the consumer prices. Thus, in general, they do not account for the labor cost changes in such research designs. This is exactly the situation for the Turkish case. Our work, to our knowledge, will be the first study to analyze ERPT to wages. We use DID and UQR frameworks and we found that in case of depreciation in TL, wages increase in different degrees in different quantiles.