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Monetary policy and labor market dynamics: A gender perspective from developing economies

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  • Petreski, Marjan
  • Tanevski, Stefan
  • Jacobo, Alejandro D.

Abstract

This study examines the gendered effects of monetary policy shocks in developing economies. Using a modified Taylor rule incorporating foreign reserve movements, we identify country-specific monetary shocks and apply a local projections estimator to analyze gender-disaggregated labor market responses in 99 developing economies from 2009 to 2021. Results indicate that women experience more negative employment effects than men post-shock, particularly in high-growth environments and under monetary tightening. The findings underscore the need for monetary authorities to consider gender disparities in policy formulation and to coordinate with labor and fiscal policies to mitigate adverse effects on women’s labor market outcomes.

Suggested Citation

  • Petreski, Marjan & Tanevski, Stefan & Jacobo, Alejandro D., 2025. "Monetary policy and labor market dynamics: A gender perspective from developing economies," Journal of Policy Modeling, Elsevier, vol. 47(5), pages 999-1020.
    • Handle: RePEc:eee:jpolmo:v:47:y:2025:i:5:p:999-1020
    DOI: 10.1016/j.jpolmod.2025.03.002
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    Keywords

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    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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