Research Teams

DIE 06/21 - Impacto de shocks macroeconómicos sobre la Brecha Salarial de Género en Montevideo: análisis a partir de Vectores Autorregresivos

AutorAuthor/s: Cabrera, Ignacio; Echeberría, María Eugenia; Irazusta, Francisco
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Gender Pay Gaps (GPG) continue to be a persistent problem internationally, despite the fact that there is a certain decreasing trend. While the problem has been widely studied from the microeconomic approach, there are less studies attending the relationship between macroeconomic shocks and the GPG. The aim of this study is to estimate the impact of macroeconomic shocks on the GPGs, as well as on participation and employment of men and women using a VAR model in its reduced form, based on the methodology presented by Kovalenko and Töpfer (2021). We study the case of Montevideo, Uruguay, using data for the period 1985-2019. We find that a positive shock on the Gross Domestic Product (GDP) results in an increase in the GPG when considering average wage income of all employees. Further, female participation in the labor market responds positively to a positive shock on their income, while male participation remains unchanged.  
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