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Countercyclical fiscal policy and gender employment: evidence from the G-7 countries

Akitoby Bernardin, Honda Jiro and Hiroaki Miyamoto
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Akitoby Bernardin: European Department, International Monetary Fund, 700 19th Street, NW, Washington, D.C., 20431, USA
Honda Jiro: Fiscal Affairs Department, International Monetary Fund, 700 19th Street, NW, Washington, D.C., 20431, USA

IZA Journal of Labor Policy, 2022, vol. 12, issue 1, 23

Abstract: Would countercyclical fiscal policy during recessions improve or worsen the gender employment gap? We answer this question by exploring the state-dependent impact of fiscal spending shocks on employment by gender in the G-7 countries. Using the local projection method, we find that, during recessions, a positive fiscal spending shock increases female employment more than male employment, contributing to gender employment equality. Our findings are driven by disproportionate employment changes in female-friendly industries, occupations, and part-time jobs in response to fiscal spending shocks. The analysis suggests that fiscal stimulus, particularly during recessions, could achieve the twin objectives of supporting aggregate demand and improving gender gaps.

Keywords: Gender gap; employment; fiscal policy (search for similar items in EconPapers)
JEL-codes: E24 E62 J16 (search for similar items in EconPapers)
Date: 2022
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Working Paper: Countercyclical Fiscal Policy and Gender Employment: Evidence from the G-7 Countries (2019) Downloads
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DOI: 10.2478/izajolp-2022-0005

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