The employment effects of public spending in infrastructure, the care economy and the green economy: the case of emerging economies

Ö Onaran, C Oyvat - 2023 - gala.gre.ac.uk
2023gala.gre.ac.uk
This report investigates the impacts of increased public spending in the care economy, the
green economy, and in infrastructure on the employment of men and women and a country's
GDP, in eight selected emerging economies. The paper makes use of a vector
autoregression (VAR) model for each country and explores policy scenarios for increased
public spending within these three sectors. The paper demonstrates the employment
creation potential of renewable energy, public transport, other infrastructure, and the care …
This report investigates the impacts of increased public spending in the care economy, the green economy, and in infrastructure on the employment of men and women and a country’s GDP, in eight selected emerging economies. The paper makes use of a vector autoregression (VAR) model for each country and explores policy scenarios for increased public spending within these three sectors. The paper demonstrates the employment creation potential of renewable energy, public transport, other infrastructure, and the care economy. In doing so, it highlights the potential of strengthened policies to facilitate a just transition to a zero-carbon economy. In addition, the gendered employment effects of the three types of public spending are considered, and the importance of a policy mix to ensure that a just transition is gender equitable is highlighted. The paper further calculates the associated fiscal multipliers of public spending in care, the green economy, and infrastructure based on the estimated effects on GDP. It is found that the multiplier effects on GDP are positive across all the analysed countries and, in most of them, it is substantial in all the spending categories, reaching more than one in the medium term.
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