Monetary policy and the gender and racial employment dynamics in Brazil

Arbeitspapier

Monetary policy has been historically concerned with controlling inflation, using the interest rate as its main tool. However, such policies are not gender- or race-neutral. This paper explores econometrically the effect of changes in the interest rate for female and black employment creation in Brazil. We conduct a panel data fixed effects analysis for 13 states between 2012 and 2021 to estimate the effects of changes in interest rates on unemployment, separating the data by gender and race. Our results show that the real interest rate has a positive effect on the relative unemployment of black men to white men, no effect on the relative unemployment of black women to white men, and a negative effect on the relative unemployment of white women to white men. These effects are intensified in regions where the black population ratio is lower. This paper contributes to understanding the challenges to closing gender and racial gaps, particularly in developing economies. We conclude that social stratification, if not considered, can lead to misleading policies that perpetuate unequal socioeconomic outcomes.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 1016

Classification and Topics

• Classification: Wirtschaft ; Feminist Economics ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Monetary Policy ; Central Banks and Their Policies
• Subject: Monetary policy ; gender inequality ; racial inequality ; social stratification

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Couto, Patricia ; Brenck, Clara
• Event: Veröffentlichung
• (who): Levy Economics Institute of Bard College
• (where): Annandale-on-Hudson, NY
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/283207
• Last update: 10.03.2025, 11:45 AM CET