Policy matters: The gendered impact of welfare systems and gender job segregation on unemployment during the EU recession and austerity, 2004-2018

Abstract: Previous literature on the gendered impact of the 2008 recession and subsequent austerity on unemployment in the EU found that male unemployment is particularly affected by the recession, whereas female unemployment increases disproportionately during periods of austerity. Welfare systems and gender job segregation have been discussed as underlying mechanisms of these effects. This thesis is the first study to quantitatively investigate the influence of welfare systems and gender job segregation during recession and austerity through interaction variables in a panel data linear regression model. Its findings confirm that, on an EU-wide scale, male unemployment was disproportionately affected by the recession. Moreover, male unemployment was particularly affected in socially stratified welfare systems, whereas female unemployment increased disproportionately in welfare systems marked by a very low degree of decommodification. As regards the influence of gender job segregation, high female labour shares are related to increases female unemployment. In contrast, high male labour shares act as buffers to male unemployment during the recession and austerity. Overall, the findings suggest that policy plays an essential role in mitigating gendered effects of the recession and austerity on unemployment.