<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</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.

Countercyclical fiscal policy and gender employment: evidence from the G-7 countries

Faculty of Economics and Business Administration

IZA Journal of Labor Policy

This work is licensed under the Creative Commons Attribution 4.0 International License.

Would countercyclical fiscal policy during recessions improve or worsen the gender employment gap? We answer this question by exploring the state-dependent...

Countercyclical fiscal policy and gender employment: evidence from the G-7 countries

Published Online: Aug 09, 2022

Page range: -

Accepted: Jun 02, 2022

DOI: https://doi.org/10.2478/izajolp-2022-0005

Keywords
Gender gap, employment, fiscal policy

© 2022 Bernardin Akitoby et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Countercyclical fiscal policy and gender employment: evidence from the G-7 countries

Published Online: Aug 09, 2022

Page range: -

Accepted: Jun 02, 2022

DOI: https://doi.org/10.2478/izajolp-2022-0005

KeywordsGender gap, employment, fiscal policy

© 2022 Bernardin Akitoby et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Gender gap, employment, fiscal policy