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

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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)

  • Miyamoto Hiroaki

    (Faculty of Economics and Business Administration, Tokyo Metropolitan University, 1-1 Minami-Osawa, Hachioji-shi, Tokyo, 192-0397, Japan)

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.

Suggested Citation

  • Akitoby Bernardin & Honda Jiro & Miyamoto Hiroaki, 2022. "Countercyclical fiscal policy and gender employment: evidence from the G-7 countries," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-23, January.
    • Handle: RePEc:vrs:izajlp:v:12:y:2022:i:1:p:23:n:3
    DOI: 10.2478/izajolp-2022-0005
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    Cited by:

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    2. Wifag Adnan & Kerim Peren Arin & Aysegul Corakci & Nicola Spagnolo, 2022. "On the heterogeneous effects of tax policy on labor market outcomes," Southern Economic Journal, John Wiley & Sons, vol. 88(3), pages 991-1036, January.

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    More about this item

    Keywords

    Gender gap; employment; fiscal policy;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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