The unintended consequences of IMF programs: Women left behind in the labor market

Despite societal progress toward achieving gender equality, women remain disadvantaged across all walks of life. We examine how pressures by the International Monetary Fund (IMF) for austerity and liberalization policies affect women’s economic empowerment in developing countries. Focusing on labor market outcomes, we expect that IMF programs increase the gender unemployment gap. This effect will hold regardless of existing societal gender norms, reflecting that women work in less ‘crisis-proof’ jobs. In contrast, we believe that prevailing societal gender norms will adversely impact women’s ability to remain in the labor force, resulting in widening gender labor force participation gaps. Relying on a dataset covering 128 developing countries between 1992 and 2018, we confirm these expectations. Our findings underscore how, during economically turbulent times, policy demands of the Fund can amplify existing gender inequalities.