Why Macroeconomic Policy Matters for Gender Equality

This brief synthesizes research findings, analysis and policy recommendations on creating an alternative gender-responsive macroeconomic agenda.Macroeconomic policy, including fiscal and monetary policy, is often thought of as gender-neutral. But economic policy choices affect women and men differently because of their different positions in the economy, both market (paid) and non-market (unpaid). For instance, budget cuts that reduce social spending may increase the demands on women's unpaid household labour, while trade liberalization may negatively affect women's employment in contexts where they are overrepresented in import-competing sectors, such as agricultural food crops. Yet, macroeconomic policies to date have paid scant attention to these issues and have therefore not been conducive to the achievement of gender equality.Focusing on goals, measurement and policy instruments, this brief lays out the key problems with current macroeconomic policies and provides building blocks for an alternative macroeconomic agenda that is rights-based and gender-responsive.This brief draws on key findings of UN Women's flagship report "Progress of the World's Women 2015 -2016.

The Structure of Employment, Globalization, and Economic Crises: Rethinking Contemporary Employment Dynamics with a Focus on the U.S. and Japan

This paper explores the intersections between the current trajectory of globalization, changes to the structure of employment, and policies for maintaining opportunities for decent employment. There are numerous outcomes of these interactions, including higher levels of open unemployment, growth of informal employment, downward pressure on the returns to labor, and a redistribution of risk from capital to labor. Common factors have affected labor demand and labor supply in a range of countries, but specific employment outcomes are dependent on domestic institutions and structural realities. Within this broader framework, the paper examines changing patterns of employment in Japan and the U.S. in recent years, including the experience of both countries with regard to financial bubbles and subsequent crises.J21, O43, P48

The New Face of Unequal Exchange: Low-Wage Manufacturing, Commodity Chains, and Global Inequality

The institutional structure of global commodity chains and cross-border production networks has a profound impact on how the benefits of globalized production are distributed. This paper engages with this issue by developing a model that combines the insights of earlier unequal exchange theorists and new work on global commodity chains to clarify the distributive dynamics of the expansion of low-wage manufacturing in the developing world. In this framework, the ability of productivity-led development to raise employment incomes in low-wage manufacturing is constrained and depends on how the benefits of productivity improvements are captured – as lower prices for consumers or higher rents for brandname multinationals. In contrast, consumption-led growth in relatively affluent consumer markets will contribute to income convergence when demand for manufactured consumer imports is sufficiently income elastic. However, in the long-run, labor market, macroeconomic, and environmental constraints will likely compromise this form of export-led employment growth.trade, global commodity chains, multinational corporations, subcontracting, branding, inequality

Employment, Poverty, and Gender in Ghana

This paper examines the connections among gender, employment, and poverty in Ghana using data from the fourth round of the Ghana Living Standards Survey. The relationships are explored through a series of tabulations that shed light on how labor force segmentation, different forms of employment, and gender dynamics influence poverty rates and earnings of individuals and households. The estimates suggest that substantial labor force segmentation is evident in Ghana. Women are disproportionately represented in more precarious forms of employment. In addition, poverty and earnings differ markedly from one employment status category to the next. These results have important implications for “pro-poor” employment policies in Ghana.

Monetary Policy and Financial Sector Reform for Employment Creation and Poverty Reduction in Ghana

.Monetary Policy Financial Sector; Reform; Ghana

Targeting Employment Expansion, Economic Growth and Development in Sub-Saharan Africa: Outlines of an Alternative Economic Programme for the Region

This paper outlines the elements of a development-targeted economic framework aimed at creating decent employment opportunities as a strategy for realizing core human development goals in Africa. Four policy areas form the core of the paper: monetary policy and inflation, exchange rate policy, development finance and financial sector reforms, and public investment and fiscal policy. This paper draws heavily on three large UNDP-sponsored studies of employment-oriented economic policies in Kenya, Ghana, and South Africa. The paper aims to discuss the elements of an alternative, development-targeted economic framework for African countries in general and, in doing so, the analysis draws on examples, research, and statistics from a wide range of countries.Africa, macroeconomics, employment, finance, exchange rates, inflation.

Working Paper 108 - Is there a Case for Formal Inflation Targeting in Sub-Saharan Africa?

This paper examines the question of whetherinflation targeting monetary policy is anappropriate framework for sub-SaharanAfrican countries. The paper presents anoverview of inflation targeting, reviews thejustification for the regime, and summarizessome major critiques. Monetary policyresponses to inflation depend on the sourceof inflationary pressures. Therefore, thedeterminants of inflation in African countriesare investigated, using dynamic panel data,and the implications for inflation targetingare discussed. These issues are examined ingreater detail for the two African countrieswhich have formally adopted inflationtargeting, South Africa and Ghana. Theanalysis is placed in the context of the globaleconomic crisis. The paper concludes with adiscussion of alternative approaches tomonetary policies and the institutionalconstraints that would need to be addressedto allow central banks to play a strongerdevelopmental role in sub-Saharan Africancountries.

Contractionary Monetary Policy and the Dynamics of U.S. Race and Gender Stratification

This paper explores the distributional effects of contractionary monetary policy by race and gender in the U.S. from 1979-2008 using state-level panel data. We hypothesize that women and Blacks, as groups with less power and lower status in the social hierarchy, fare worse in the competition over jobs, resulting in a disproportionate rise in female and Black unemployment rates relative to White males. We also investigate the possibility that Blacks bear a greater burden of joblessness than females as Black population density rises. Results indicate the costs of fighting inflation are unevenly distributed amongst workers, weighing more heavily on Black females and Black males, followed by White females, and lastly, White males.Monetary policy, stratification, race, gender, unemployment

Is There a Case for Formal Inflation Targeting in Sub-Saharan Africa?

This working paper examines the question of whether inflation targeting monetary policy is an appropriate framework for sub-Saharan African countries. The paper presents an overview of inflation targeting, reviews the justification for the regime, and summarizes some major critiques. Monetary policy responses to inflation depend on the source of inflationary pressures. Therefore, the determinants of inflation in African countries areinvestigated, using dynamic panel data, and the implications for inflation targeting are discussed. These issues are examined in greater detail for the two African countries which have formally adopted inflation targeting, South Africa and Ghana. The analysis is placed in the context of the global economic crisis. The paper concludes with a discussion of alternative approaches to monetary policies and the institutional constraints that would need to be addressed to allow central banks to play a stronger developmental role in sub-Saharan African countries.Sub-Saharan Africa, inflation, development, monetary policy, finance