Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298775 
Year of Publication: 
2022
Citation: 
[Journal:] IZA Journal of Labor Policy [ISSN:] 2193-9004 [Volume:] 12 [Issue:] 1 [Article No.:] 5 [Year:] 2022 [Pages:] 1-23
Publisher: 
Sciendo, Warsaw
Abstract: 
Would countercyclical fiscal policy during recessions improve or worsen the gender employment gap? We answer this question by exploring the state-dependent impact of fiscal spending shocks on employment by gender in the G-7 countries. Using the local projection method, we find that, during recessions, a positive fiscal spending shock increases female employment more than male employment, contributing to gender employment equality. Our findings are driven by disproportionate employment changes in female-friendly industries, occupations, and part-time jobs in response to fiscal spending shocks. The analysis suggests that fiscal stimulus, particularly during recessions, could achieve the twin objectives of supporting aggregate demand and improving gender gaps.
Subjects: 
Gender gap
employment
fiscal policy
JEL: 
E24
E62
J16
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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