Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/247422 
Year of Publication: 
2021
Series/Report no.: 
Bank of Canada Staff Working Paper No. 2021-42
Publisher: 
Bank of Canada, Ottawa
Abstract: 
Men, especially those that are young and less educated, typically bear the brunt of recessions because of the stronger cyclicality of their employment and wages relative to women's. We study the extent to which fiscal policy may offset or worsen these asymmetric effects across gender. Using micro-level data for the U.S. from the Current Population Survey, we find that the effects of fiscal policy shocks on labor market outcomes depend on the type of public expenditure. Women benefit most from increases in the government wage bill, while men are the main beneficiaries of higher investment spending. Our analysis further reveals that the fiscal component most efficient at closing gender gaps is least suitable for offsetting inequitable business cycle effects across other socioeconomic dimensions.
Subjects: 
Fiscal policy
Labour markets
Business fluctuations and cycles
JEL: 
E32
E62
J21
J16
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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