Countercyclical Fiscal Policy and Gender Employment: Evidence from the G-7 Countries
IMF Working Papers, January 11, 2019
Source details
- Canonical URL
- Countercyclical Fiscal Policy and Gender Employment: Evidence from the G-7 Countries
Other formats
Bibliographic details
- Authors: Bernardin Akitoby, Jiro Honda, Hiroaki Miyamoto
- Published: January 11, 2019
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484390054.001
Summary and Research Question
- Research question: Would countercyclical fiscal policy during recessions improve or worsen the gender employment gap?
- Core finding: During recessions, fiscal stimulus can both support aggregate demand and improve gender employment gaps.
Methodology
- Empirical approach: Local projection method applied to the G-7 countries.
- Shock analyzed: Positive fiscal spending shock of 1 percent of GDP.
Key Quantitative Findings
- During recessions, a positive spending shock of 1 percent of GDP would, on average:
- lift female employment by 1 percent;
- increase male employment by 0.6 percent;
- improve the female share of employment by 0.28 percentage point.
Mechanisms and Drivers
- The gender-differential effects are driven by disproportionate employment changes in:
- female-friendly industries;
- female-friendly occupations;
- part-time jobs.
Policy Implications
- Fiscal stimulus, particularly when implemented during recessions, could:
- achieve the twin objectives of supporting aggregate demand and improving gender gaps in employment;
- be considered as a tool to reduce gender employment disparities via targeted spending that benefits female-intensive sectors and job types.
Source: Countercyclical Fiscal Policy and Gender Employment: Evidence from the G-7 Countries, Bernardin Akitoby, Jiro Honda, Hiroaki Miyamoto, January 11, 2019 (IMF Working Paper).