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The effects of austerity measures on gender gaps in labour-market outcomes

Author

Listed:
  • Jorge Dávalos
  • Marko Vladisavljević
  • Jelena Žarković

Abstract

In this paper we estimate the effects that the wage cuts, implemented as part of the fiscal consolidation measures by the Serbian government in late 2014, had on women’s participation in the public sector relative to men, as well as its gender wage gap implications. From the 2014–2015 Serbian Labour Force Survey panel, our findings suggest that the cuts mandated by austerity measures pushed younger and older female workers to unemployment and inactivity, while no such effect was identified for men. We also find evidence of heterogeneous compliance with the wage cut across public subsectors: state-owned enterprises, a subsector dominated by men, exhibited lower compliance with wage cuts compared to the state sector, which is dominated by women. We argue that such heterogeneous compliance prevented austerity measures from delivering its potential equalising effect on the gender wage gap. Our results have important policy implications for future austerity episodes that would arise as a consequence of external shocks affecting the fiscal deficit.

Suggested Citation

  • Jorge Dávalos & Marko Vladisavljević & Jelena Žarković, 2026. "The effects of austerity measures on gender gaps in labour-market outcomes," Post-Communist Economies, Taylor & Francis Journals, vol. 38(6), pages 610-641, August.
    • Handle: RePEc:taf:pocoec:v:38:y:2026:i:6:p:610-641
    DOI: 10.1080/14631377.2026.2666049
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