Gender Segregation at Work over Business Cycle-Evidence from Selected EU Countries

In this paper, we investigate whether gender employment rate responses to upward and downward fluctuations in the business cycle are symmetric and whether these responses differ depending on gender employment segregation in sectors and on different type of welfare states using the Esping-Andersen's classification. We use the VAR model both in linear and non-linear (asymmetric) specification of GDP shocks and impulse response function. We find no convincing evidence of discouraged worker effect as it occurs in neither country fully, which suggests not hidden unemployment but rather the phenomenon of involuntary part-time workers becoming more common with the increase of precarious employment. Furthermore, we find that the pattern of gender employment adjustments to GDP fluctuations indicates that the gender sectoral segregation is a deeply entrenched feature within given economic sectors (construction, education, and accommodation) in all studied countries (Germany, Poland, and Portugal). Hence, this stagnation of gender segregation contributes to the preservation of gender pay differentials in spite of many years of equal pay legislation in the EU members.