Engendering economic recovery: modelling alternatives to austerity in Europe

This article explores a gendered expansionary macroeconomic scenario for Europe as an alternative to the current austerity policies over the medium term. Using a non-equilibrium structuralist macroeconometric model we demonstrate that the dual aim of economic growth and increases in both male and female employment can be achieved via the adoption of gender-sensitive expansionary macroeconomic policies. We compare and contrast three scenarios for Europe: continued austerity, gender-neutral expansionary scenario and gendered expansionary scenario. Projections for our gendered expansionary scenario suggest that an additional 7.4 million jobs for women could by created in the Eurozone and the United Kingdom by reversing austerity policies, by gendering and increasing government expenditure and private investment. Further, higher growth rates under the gendered expansionary scenario lead to significant reductions of debt-to-GDP ratios and lower budget deficits. The main recommendation is for Europe to roll back austerity policies and to embark on a new gender-focused economic trajectory.