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The Effects of Gender Discrimination in DSGE Models

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  • Stempel, Daniel
  • Neyer, Ulrike

Abstract

This paper theoretically analyzes the macroeconomic effects of gender discrimination against women in the labor market in a New Keynesian model. We extend standard frameworks by including unpaid household production in addition to paid labor market work, by assuming that the representative household consists of two agents, and by introducing discriminatory behavior on the firms' side. We find that, in steady state, this discrimination implies that women work inefficiently more in the household and less in the paid labor market than men. This inefficient working time allocation between women and men leads to a discrimination-induced gender wage gap, lower wages for women and men, lower ag-gregate output, and lower welfare. The analysis of dynamic effects reveals that households benefit less from positive technology shocks. Moreover, the transmission of expansionary monetary policy shocks on output and ination is lower in the discriminatory environment.

Suggested Citation

  • Stempel, Daniel & Neyer, Ulrike, 2019. "The Effects of Gender Discrimination in DSGE Models," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203556, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc19:203556
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    Cited by:

    1. Valdivia Coria, Joab Dan, 2023. "Discriminación salarial de género, efectos en la política monetaria y fluctuación cíclica del producto [Gender pay gap, effects on monetary policy and cyclical output fluctuation]," MPRA Paper 116271, University Library of Munich, Germany.

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    More about this item

    Keywords

    New Keynesian Models; Gender Discrimination; Household Production; Monetary Policy Transmission;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • 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
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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