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Gender differences in the effect of monetary policy on employment: The case of nine OECD countries

  • Takhtamanova, Yelena

    (Reserve Bank of San Francisco)

  • Sierminska, Eva

    (CEPS/INSTEAD and DIW Berlin)

In many countries, the focus of monetary policy is increasingly shifting to low and stable inflation as it provides many benefits to the economy. However, there is evidence that costs of inflation reduction are inequitably distributed by gender in developing countries. This paper addresses employment costs of inflation reduction in developed countries. Using quarterly data for 1980-2006, we examine gender and country differences in the effects of interest rate on employment in nine OECD countries. We look at total employment, as well as employment dis-aggregated by three sectors: agriculture, industry and services. We find that the link between monetary policy instruments (short-term interest rates) and employment in the industrial countries under investigation is neither strong nor varies by gender.

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Paper provided by IRISS at CEPS/INSTEAD in its series IRISS Working Paper Series with number 2008-04.

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Length: 42 pages
Date of creation: Feb 2008
Date of revision: Jun 2008
Handle: RePEc:irs:iriswp:2008-04
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