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The Gender Unemployment Gap Across the Euro Area: The Role of Macroeconomic Shocks and Labour Market Institutions

Author

Listed:
  • Alexander Mihailov

    (Department of Economics, University of Reading)

  • Giovanni Razzu

    (Department of Economics, University of Reading)

  • Zhe Wang

    (Department of Economics, University of Reading)

Abstract

We examine the gender unemployment impact from four types of macroeconomic shocks under single monetary policy in the Euro Area. We also explore the role in shock absorption and transmission played by different labour market institutions. We apply panel data estimation to 11 Euro Area countries over the 2000-2013 period, disaggregated by age, marital status and education. We find that adverse macro-shocks, such as reductions in labour demand, similar to those experienced during the current COVID-19 pandemic, or a contractionary monetary policy, as in the build-up to the global financial crisis of 2007-2009, are associated with a larger increase in unemployment rates for women than for men, specifically for the young and less-educated. However, labour market institutions, in particular unionisation or labour tax wedge abatement, mitigate the widening of the gender unemployment gap.

Suggested Citation

  • Alexander Mihailov & Giovanni Razzu & Zhe Wang, 2020. "The Gender Unemployment Gap Across the Euro Area: The Role of Macroeconomic Shocks and Labour Market Institutions," Economics Discussion Papers em-dp2020-26, Department of Economics, University of Reading.
    • Handle: RePEc:rdg:emxxdp:em-dp2020-26
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    File URL: http://www.reading.ac.uk/web/FILES/economics/emdp202026.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    gender unemployment gap; demographic composition of unemployment; macroeconomic shocks; labour market institutions; monetary policy; Euro Area;
    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
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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