Countercyclical Fiscal Policy and Gender Employment: Evidence from the G-7 Countries

Author/Editor:

Bernardin Akitoby ; Jiro Honda ; Hiroaki Miyamoto

Publication Date:

January 11, 2019

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Would countercyclical fiscal policy during recessions improve or worsen the gender employment gap? We give an answer to 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 spending shock of 1 percent of GDP would, on average, lift female employment by 1 percent, while increasing male employment by 0.6 percent. Consequently such a shock would improve the female share of employment by 0.28 percentage point during recessions. 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.

Series:

Working Paper No. 19/4

Subject:

English

Publication Date:

January 11, 2019

ISBN/ISSN:

9781484390054/1018-5941

Stock No:

WPIEA2019004

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

33

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