TY - BOOK ID - 84541398 TI - The Decline of Traditional Sectors in Israel : The Role of the Exchange Rate and the Minimum Wage PY - 1998 SN - 146230446X 1452780463 1282035304 9786613796813 1451903405 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Labor KW - Production and Operations Management KW - Studies of Particular Policy Episodes KW - Wages, Compensation, and Labor Costs: General KW - Industry Studies: Manufacturing: General KW - Wages, Compensation, and Labor Costs: Public Policy KW - Human Capital KW - Skills KW - Occupational Choice KW - Labor Productivity KW - Labour KW - income economics KW - Macroeconomics KW - Minimum wages KW - Wages KW - Wage adjustments KW - Labor productivity KW - Labor costs KW - Production KW - Minimum wage KW - Israel KW - Income economics UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541398 AB - This paper examines the role of exchange rate appreciation and the minimum wage in the relative decline of traditional sectors in Israel. It finds little evidence to indicate that real exchange rate appreciation is primarily responsible for this decline. Rather, the evidence indicates that slower productivity growth in traditional sectors has led to relatively larger increases in unit labor costs compared with high-tech sectors. Although the links are only indicative, the evidence also suggests that the minimum wage has played a role in the relatively faster growth in unit labor costs. ER -