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Changing Business Cycles: The Role of Women's Employment

Year: 2025

Type: article

Abstract: Women's labor force participation in the United States rose rapidly until the mid-1990s when it flattened out. I examine the impact of this change in trend on aggregate business cycles with a quantitative model that incorporates gender differences. I show that the rise in women's participation played a substantial role in the Great Moderation and not allowing for gender differences leads to incorrect inference on its causes. The subsequent slowdown in women's participation played a substantial role in jobless recoveries and reduced aggregate hours and output growth in expansions, worsening aggregate economic performance in the United States. (JEL E13, E23, E24, E32, J16, J22)

Source: American Economic Journal Macroeconomics

DOI: 10.1257/mac.20210138

Author: Stefania Albanesi

Institutions: Center for Economic and Policy Research, University of Miami

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Gender equality, Reduced inequalities

Open Access status: green

OpenAlex ID: W3150634455