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IdEP Seminar "The Effect of Trade on Skill Requirements: Evidence from Job Postings", Fabrizio Colella

This paper examines the extent to which changes in international market prices lead to shifts in firms’ skill requirements through trade. 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.

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