Expansionary Fiscal Policy and the Gender Employment Gap: Evidence from the Republic of Korea
(2022) EKHS22 20221Department of Economic History
- Abstract
- The employment effects of expansionary fiscal policy have been well documented in the literature. Interestingly, however, limited attention has been paid to the gender dimension. Across countries, significant gaps in female and male employment still remain. This, together with the risk of hysteresis, makes it central to examine how expansionary fiscal policies affect female and male employment and, by extension, the gender employment gap, here defined as male employment subtracted by female employment. The empirical analysis focuses on the relevant case of the Republic of Korea and is based on a structural VAR framework using data between 2000:4 and 2018:3. In contrast to previous findings, expansionary fiscal policy, analysed as positive... (More)
- The employment effects of expansionary fiscal policy have been well documented in the literature. Interestingly, however, limited attention has been paid to the gender dimension. Across countries, significant gaps in female and male employment still remain. This, together with the risk of hysteresis, makes it central to examine how expansionary fiscal policies affect female and male employment and, by extension, the gender employment gap, here defined as male employment subtracted by female employment. The empirical analysis focuses on the relevant case of the Republic of Korea and is based on a structural VAR framework using data between 2000:4 and 2018:3. In contrast to previous findings, expansionary fiscal policy, analysed as positive government spending shocks, is found to be associated with a statistically significant increase in the gender employment gap in the short-term. This increase, in turn, is suggested to be driven by a significant increase in aggregate male employment. Based on extended analysis, the results are discussed to be partly explained by the country’s gender differences in occupational distribution, the composition of government spending, including social barriers particularly for women in the Korean labour market. Given other competing policy objectives, to prevent a widening of the gender employment gap, it may therefore be central to consider in which sectors the fiscal stimulus is concentrated. Furthermore, barriers in the Korean labour market may need to be further addressed – efforts that are important also beyond the discussion of expansionary fiscal policy effects. Due to the common limitations of the methodological approach, complementary research on the topic is encouraged. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9103816
- author
- Lindström, Ida LU
- supervisor
- organization
- course
- EKHS22 20221
- year
- 2022
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Expansionary Fiscal Policy, Gender Employment Gap, Structural VAR
- language
- English
- id
- 9103816
- date added to LUP
- 2022-12-12 08:39:05
- date last changed
- 2022-12-12 08:39:05
@misc{9103816,
abstract = {{The employment effects of expansionary fiscal policy have been well documented in the literature. Interestingly, however, limited attention has been paid to the gender dimension. Across countries, significant gaps in female and male employment still remain. This, together with the risk of hysteresis, makes it central to examine how expansionary fiscal policies affect female and male employment and, by extension, the gender employment gap, here defined as male employment subtracted by female employment. The empirical analysis focuses on the relevant case of the Republic of Korea and is based on a structural VAR framework using data between 2000:4 and 2018:3. In contrast to previous findings, expansionary fiscal policy, analysed as positive government spending shocks, is found to be associated with a statistically significant increase in the gender employment gap in the short-term. This increase, in turn, is suggested to be driven by a significant increase in aggregate male employment. Based on extended analysis, the results are discussed to be partly explained by the country’s gender differences in occupational distribution, the composition of government spending, including social barriers particularly for women in the Korean labour market. Given other competing policy objectives, to prevent a widening of the gender employment gap, it may therefore be central to consider in which sectors the fiscal stimulus is concentrated. Furthermore, barriers in the Korean labour market may need to be further addressed – efforts that are important also beyond the discussion of expansionary fiscal policy effects. Due to the common limitations of the methodological approach, complementary research on the topic is encouraged.}},
author = {{Lindström, Ida}},
language = {{eng}},
note = {{Student Paper}},
title = {{Expansionary Fiscal Policy and the Gender Employment Gap: Evidence from the Republic of Korea}},
year = {{2022}},
}