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Employment responses to fiscal consolidations: the role of gender and labor market discrimination
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Usingpanel estimates of the widest possible country sample, for the longest period possible,wedocument for the first time the impact ofconsolidations on labour market participation bygender. We find that females’ employment response to expenditure-based adjustments is less expansionary than males’ oneand that revenue-based consolidations are more harmful to males than to females, regardless ofthe discrimination level.Whendiscrimination is low, theeffectson females’ employment is qualitatively similar to males’ one, although quantitatively moreelastic for males. In economies with high gender inequalities, tax-based consolidations are less recessionary to employment and expenditure-based adjustments are less expansionary than in a more egalitarian world.
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Fiscal adjustments GDP growth Discrimination Labour market participation