Gendered Employment and Public Spending in China

This paper econometrically analyzes the relationship between public spending and gendered urban employment in China for the period 1999-2009. Proponents of gender-sensitive public policies suggest that spending on healthcare and education may increase long-run growth and women’s relative employment via the expansion of paid care work (increasing labor demand) and reductions in unpaid labor (increasing labor supply). Female, male, and gender-relative employment growth are estimated as functions of public spending while controlling for demand, structural change and capabilities. Economic growth and human capital are also included in a simultaneous equation estimation. While healthcare results are mixed, education spending is positively associated with economic growth, employment growth for both genders, and women’s relative employment. Using economic significance calculations, we describe how well-directed public policies can promote both long-and short-run benefits in gender equality and economic growth. Figure 1: Annual Gendered Employment in China (1999 to 2009)