The macroeconomic damage from gender discrimination

Daniel Stempel and Ulrike Neyer analyse the effects of gender discrimination on macroeconomic outcomes. Their study suggests that if there were no gender discrimination, adverse economic shocks like the COVID-19 pandemic would be less detrimental to economic activity. Additional consequences of gender discrimination come via monetary policy: central bank reactions to the crisis end up increasing discriminatory wage gaps and are less effective at stabilising the economy.