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Countercyclical Fiscal Policy and Gender Employment: Evidence from the G-7 Countries
Author:
Mr. Bernardin Akitoby
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,
Mr. Jiro Honda
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, and
Hiroaki Miyamotonull

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Series:
IMF Working Papers
Volume/Issue:
Volume 2019: Issue 004
Language:
English
Publication Date:
11 Jan 2019
DOI:
https://doi.org/10.5089/9781484390054.001
ISBN:
9781484390054
ISSN:
1018-5941
Pages:
33
Keywords:
WP; gender employment gap; spending shock; Technology; labor markets; income distribution; fiscal policy shock; employment type; gender employment equality; Employment; Women; Gender inequality; Unemployment; Global
Legal-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.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2019: Issue 004