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

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

Open Access
|Aug 2022

Figures & Tables

Figure 1

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

Figure 2

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

Figure 3

Output and female share of total employment.

Figure 4

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.

Figure 6

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.
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.
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)

CountryBoomRecession


Peak8th quarterPeak8th quarter
Canada0.26*(6)0.14*0.27*(3)−0.08
France0.21 (4)−0.01 0.36*(3)0.03
Germany0.18*(5)−0.01 0.27*(4)0.16*
Italy0.09*(8)0.09*0.52*(7)0.39*
Japan0.18 (8)0.18 0.09*(8)0.09*
UK0.05*(5)0.01 0.11*(5)0.08*
US0.17 (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)

MaleFemale


Unemployment rateLabor forceEmploymentUnemployment rateLabor forceEmployment
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)
UK0.5*(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

CountrySample periodMean (standard deviation)

GDPGovernment SpendingTax revenuesFemale Share of Total Employment Ratio
Canada1980:1–2016:312.08 (0.12)11.48 (0.09)11.56 (0.11)−0.79 (0.05)
France1992:1–2017:15.66 (0.05)5.04 (0.10)5.31 (0.11)−0.77 (0.03)
Germany1992:2–2016:412.39 (0.04)11.71 (0.04)11.13 (0.05)−0.81 (0.04)
Italy1999:1–2017:15.60 (0.01)5.28 (0.02)5.11 (0.02)−0.91 (0.03)
Japan1980:1–2016:314.62 (0.09)14.03 (0.08)13.94 (0.08)−0.89 (0.03)
The UK1980:1–2017:112.12 (0.11)11.48 (0.09)11.50 (0.11)−0.80 (0.05)
The US1980:1–2016:44.04 (0.13)3.38 (0.08)3.38 (0.13)−0.78 (0.03)

Key Gender-Related Fiscal Policies Implemented by G7 Countries

Policy MeasureCountry Practices
Tax Policies
  Individual income taxCanada, Italy, Japan, and UK
  Tax relief for single or working parentsMost or all G7
  Targeted in-work tax credits or benefitsFrance, Japan
Expenditure Policies
  Gender-responsive public employmentAll G7
  Quotas in managerial positionsFrance, Germany
  Public sector equal payCanada, France, Germany-Laender, Italy
  Work-life balanceCanada, France, Italy, Japan
  Women in low-income supportFrance, Germany, Italy, Japan
  Education, STEM, elimination of stereotypesAll G7
  Health prevention and age-related issuesAll G7
  Child care supportCanada, Japan, UK, Italy, Germany
  Paid parental leaveCanada, France, Germany, Italy, Japan
  Gender-related social security reformsCanada, France, Italy, UK
  Pensions linked to the number of childrenGermany
  Programs to counter domestic violenceAll G7
  Gender-responsive foreign aid and cooperationCanada, France, Japan
Language: English
Accepted on: Jun 2, 2022
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Published on: Aug 9, 2022
Published by: Sciendo
In partnership with: Paradigm Publishing Services
Publication frequency: 1 issue per year

© 2022 Bernardin Akitoby, Jiro Honda, Hiroaki Miyamoto, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 License.