Using a Taylor rule amended with official reserves movements, we derive country-specific monetary shocks and employ a local projections estimator for tracking gender-disaggregated labor market responses in 99 developing economies from 2009 to 2021. Results show that women experience more negative post-shock employment responses than men, contributing to a deepening of the gender gaps in the labor market. After the shock, women are more likely to leave the labor market compared to men, resulting in an apparently intact or even improved unemployment outcome for women. We find limited evidence of sector-specific reactions to interest rates. Additionally, we identify an intense worsening of women’s position in the labor market in high-growth environments as well as under monetary policy tightening. Developing Asia and Latin America experience the most significant detrimental effects on women’s employment, while Africa exhibits a slower manifestation of the monetary shocks' impact, and developing Europe shows the mildest effects.
Project leader: Marjan Petreski
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| Title | Modified | Size | Comments | Recommendations | |
|---|---|---|---|---|---|
| Monetary Policy and the Gendered Labor Market Dynamics: Evidence from Developing Economies | 2024-09-11 | 2.33MB | 0 | 0 |
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