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

by Bernardin Akitoby, Jiro Honda, and Hiroaki Miyamoto

Series:Working Paper No. 19/4
ISBN 9781484390054
Code: #WPIEA2019004

Publication year: 2019

Cdn: $27.00; US: $25.00
Paperback
Language: English
33 pages
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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.
Countercyclical Fiscal Policy and Gender Employment
Cdn: $27.00; US: $25.00
International Monetary Fund (IMF) BookID: 124323 Added: 2019.1.26