A Closer Look at the Employment Effects of Fiscal Policy Shocks: What have Minorities Got to Do with It?

60 Pages Posted: 6 Sep 2019

See all articles by Wifag Adnan

Wifag Adnan

New York University (NYU) - New York University Abu Dhabi

K. Peren Arin

Zayed University

Aysegul Corakci

Department of Economics, Cankaya University, Ankara, Turkey

Nicola Spagnolo

Brunel University London - Economics and Finance

Date Written: September 6, 2019

Abstract

We investigate the employment effects of fiscal policy innovations using the narrative approach for different racial/ethnic groups, and separately for recessions and expansions. Our results show that (i) overall, tax shocks have larger effects, in terms of magnitude and significance, on the unemployment rate compared to defense spending shocks, (ii.) fiscal policy shocks have varying employment effects depending on gender, racial/ethnic subgroup and the stage of the business cycle, and (iii) sector, industry and occupational segregation in labor markets by gender, race and ethnicity can explain most of the variation in responses to fiscal policy shocks.

Suggested Citation

Adnan, Wifag and Arin, Kerim Peren and Corakci, Aysegul and Spagnolo, Nicola, A Closer Look at the Employment Effects of Fiscal Policy Shocks: What have Minorities Got to Do with It? (September 6, 2019). CAMA Working Paper No. 66/2019, Available at SSRN: https://ssrn.com/abstract=3448857 or http://dx.doi.org/10.2139/ssrn.3448857

Wifag Adnan

New York University (NYU) - New York University Abu Dhabi ( email )

PO Box 129188
Abu Dhabi
United Arab Emirates

Kerim Peren Arin (Contact Author)

Zayed University ( email )

P.O. Box 4783
Abu Dhabi
United Arab Emirates

Aysegul Corakci

Department of Economics, Cankaya University, Ankara, Turkey ( email )

Turkey

Nicola Spagnolo

Brunel University London - Economics and Finance ( email )

Uxbridge UB8 3PH
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
3
Abstract Views
247
PlumX Metrics