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


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Figure 1

Female share of total employment: 1986–2019.Source: OECD (2016).
Female share of total employment: 1986–2019.Source: OECD (2016).

Figure 2

Female share of total employment: 2007–2017.Source: OECD (2016).
Female share of total employment: 2007–2017.Source: OECD (2016).

Figure 3

Output and female share of total employment.
Output and female share of total employment.

Figure 4

Fiscal spending and female share of total employment.
Fiscal spending and female share of total employment.

Figure 5

Effects of government spending shocks on gender equality.Notes: 95% confidence intervals are shown in all cases.
Effects of government spending shocks on gender equality.Notes: 95% confidence intervals are shown in all cases.

Figure 6

Effects of government spending shocks on gender equality.Notes: 95% confidence intervals are shown in all cases.
Effects of government spending shocks on gender equality.Notes: 95% confidence intervals are shown in all cases.

Figure 7

Response of predicted female share of employment during recessions.Notes: The solid lines plot impulse responses obtained by using predicted female employment shares. The dash-dotted lines plot impulse responses obtained by using the actual female employment share. The dash lines denote 90% confidence bands. Correlations between impulse responses obtained by using predicted female employment shares and those obtained by using the actual female employment share are also presented.
Response of predicted female share of employment during recessions.Notes: The solid lines plot impulse responses obtained by using predicted female employment shares. The dash-dotted lines plot impulse responses obtained by using the actual female employment share. The dash lines denote 90% confidence bands. Correlations between impulse responses obtained by using predicted female employment shares and those obtained by using the actual female employment share are also presented.

Notes: 95% percent confidence intervals are shown in all cases.Source: Authors’ calculations.
Notes: 95% percent confidence intervals are shown in all cases.Source: Authors’ calculations.

Notes: 95% confidence intervals are shown in all cases.Source: Authors’ calculations.
Notes: 95% confidence intervals are shown in all cases.Source: Authors’ calculations.

Notes: 95% confidence intervals are shown in all cases.Source: Authors’ calculations.
Notes: 95% confidence intervals are shown in all cases.Source: Authors’ calculations.

Note: Dashed lines indicate 95 percent confidence intervals and lines with circles present impluse reponses functions in the baseline case.
Note: Dashed lines indicate 95 percent confidence intervals and lines with circles present impluse reponses functions in the baseline case.

Effects of government spending shock on gender employment (Changes in the female share of total employment, in percentage points)

Country Boom Recession


Peak 8th quarter Peak 8th quarter
Canada 0.26 * (6) 0.14 * 0.27 * (3) −0.08
France 0.21 (4) −0.01 0.36 * (3) 0.03
Germany 0.18 * (5) −0.01 0.27 * (4) 0.16 *
Italy 0.09 * (8) 0.09 * 0.52 * (7) 0.39 *
Japan 0.18 (8) 0.18 0.09 * (8) 0.09 *
UK 0.05 * (5) 0.01 0.11 * (5) 0.08 *
US 0.17 (5) 0.05 0.31 * (4) 0.14 *

Impacts of spending shocks on female and male unemployment, labor force, and employment during recessions. (Percent changes, peak after the shock)

Male Female


Unemployment rate Labor force Employment Unemployment rate Labor force Employment
Canada −0.2* (2) 0.0 (7) 0.7 (7) −0.4* (1) 0.3* (3) 1.7* (6)
France −1.0* (7) 0.1 (3) 1.5* (5) −0.8* (5) 0.3* (2) 1.9* (3)
Germany −0.5* (3) 0.0 (0) −0.1 (6) −0.3 (3) −0.2* (8) 0.2 (0)
Italy −0.1* (1) −0.2* (3) 0.1 (5) −0.4* (4) 0.3* (8) 0.5* (5)
Japan −0.1* (4) 0.1* (7) 0.7* (5) −0.1* (2) 0.1* (8) 0.8* (7)
UK 0.5* (6) 0.1* (7) 0.0 (0) 0.3* (6) 0.1 (5) 0.5* (7)
US −1.4* (5) 0.2* (6) 1.6* (8) −1.1* (5) 0.3* (7) 1.9* (8)

Summary Statistics

Country Sample period Mean (standard deviation)

GDP Government Spending Tax revenues Female Share of Total Employment Ratio
Canada 1980:1–2016:3 12.08 (0.12) 11.48 (0.09) 11.56 (0.11) −0.79 (0.05)
France 1992:1–2017:1 5.66 (0.05) 5.04 (0.10) 5.31 (0.11) −0.77 (0.03)
Germany 1992:2–2016:4 12.39 (0.04) 11.71 (0.04) 11.13 (0.05) −0.81 (0.04)
Italy 1999:1–2017:1 5.60 (0.01) 5.28 (0.02) 5.11 (0.02) −0.91 (0.03)
Japan 1980:1–2016:3 14.62 (0.09) 14.03 (0.08) 13.94 (0.08) −0.89 (0.03)
The UK 1980:1–2017:1 12.12 (0.11) 11.48 (0.09) 11.50 (0.11) −0.80 (0.05)
The US 1980:1–2016:4 4.04 (0.13) 3.38 (0.08) 3.38 (0.13) −0.78 (0.03)

Key Gender-Related Fiscal Policies Implemented by G7 Countries

Policy Measure Country Practices
Tax Policies
  Individual income tax Canada, Italy, Japan, and UK
  Tax relief for single or working parents Most or all G7
  Targeted in-work tax credits or benefits France, Japan
Expenditure Policies
  Gender-responsive public employment All G7
  Quotas in managerial positions France, Germany
  Public sector equal pay Canada, France, Germany-Laender, Italy
  Work-life balance Canada, France, Italy, Japan
  Women in low-income support France, Germany, Italy, Japan
  Education, STEM, elimination of stereotypes All G7
  Health prevention and age-related issues All G7
  Child care support Canada, Japan, UK, Italy, Germany
  Paid parental leave Canada, France, Germany, Italy, Japan
  Gender-related social security reforms Canada, France, Italy, UK
  Pensions linked to the number of children Germany
  Programs to counter domestic violence All G7
  Gender-responsive foreign aid and cooperation Canada, France, Japan