Gender and Public Spending: A Conceptual Model of Employment, an Empirical Application, and Paths for Future Work

Abstract

With a focus on the role of public spending, this paper provides a comprehensive model of employment incorporating direct and indirect employment effects with both supply and demand-side determinants. While the pathways within the model function for both genders, the magnitudes of the effects differ strongly for women and men, especially in regard to public spending on infrastructure. Applying the model to data from the United States, I explore potential ramifications of public spending options in regard to gender equality in employment. Finally, detailed paths for future work are provided which aim to direct future studies so as to expand the knowledge of the implications of public policy options to improve women’s relative welfare. I conclude that connections between the economic and the social spheres cannot be ignored without significant detrimental outcomes for women’s welfare.