Monetary Policy and Labor Market Gender Gaps

We study the effects of monetary policy shocks on employment gender gaps in a panel of 22 countries using quarterly data from 1990 to 2019. Our results show that men’s employment falls more than women’s after contractionary monetary policy shocks, narrowing the employment gender gap over time. Two f...

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Bibliographic Details
Main Author: Flamini, Valentina
Other Authors: Gomes, Diego, Huang, Bihong, Kolovich, Lisa
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2023
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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100 1 |a Flamini, Valentina 
245 0 0 |a Monetary Policy and Labor Market Gender Gaps  |c Valentina Flamini, Diego Gomes, Bihong Huang, Lisa Kolovich, Aina Puig, Aleksandra Zdzienicka 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2023 
300 |a 24 pages 
653 |a Social discrimination & equal treatment 
653 |a Women 
653 |a Gender studies; women & girls 
653 |a Labour; income economics 
653 |a Employment; Economic theory 
653 |a Unemployment: Models, Duration, Incidence, and Job Search 
653 |a Aggregate Labor Productivity 
653 |a Labor markets 
653 |a Labor 
653 |a Economics of specific sectors 
653 |a Sex discrimination 
653 |a Currency crises 
653 |a Gender Studies 
653 |a Macroeconomics 
653 |a Labor Standards: Labor Force Composition 
653 |a Women''s Studies' 
653 |a Employment 
653 |a Equity, Justice, Inequality, and Other Normative Criteria and Measurement 
653 |a Economic & financial crises & disasters 
653 |a Gender inequality 
653 |a Economics of Gender 
653 |a Non-labor Discrimination 
653 |a Economics: General 
653 |a Unemployment 
653 |a Informal sector; Economics 
653 |a Demand and Supply of Labor: General 
653 |a Aggregate Human Capital 
653 |a Labor Force and Employment, Size, and Structure 
653 |a Labor market 
653 |a Wages 
653 |a Intergenerational Income Distribution 
653 |a Monetary Policy 
653 |a Gender 
700 1 |a Gomes, Diego 
700 1 |a Huang, Bihong 
700 1 |a Kolovich, Lisa 
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520 |a We study the effects of monetary policy shocks on employment gender gaps in a panel of 22 countries using quarterly data from 1990 to 2019. Our results show that men’s employment falls more than women’s after contractionary monetary policy shocks, narrowing the employment gender gap over time. Two factors contribute to explaining this heterogeneous effect. First, a larger impact of monetary policy shocks on employment in the industry sector that employs more men. Second, the larger response of the employment gap in the sector (services) that employs the largest share of men and women. In terms of labor market adjustment, the narrowing of the gender employment gap is initially driven by a reduction in the gender unemployment gaps that, over time, results in an adjustment in the gender labor force participation gap—with men’s labor force participation dropping more than women’s. The effects are larger in countries with more flexible labor market regulations, higher gender wage gaps, and lower informal women’s employment compared to men’s. Finally, the effects are also larger for contractionary monetary policy shocks and during expansions