Gender-Specific Unemployment Sensitivity to the Economic Cycle at the Provincial Level in Spain

This study offers new insights into how different regions in Spain respond to changes in the economic cycle, providing a fresh perspective using quarterly data desegregated by provincial level and gender. We aim to identify which regions are affected the most by the economic fluctuations, disentangling the differences between men and women. Our research highlights the importance of considering both regional and gender-specific factors when creating labor policies that aim to mitigate the effects of economic cycles. We estimate a dynamic panel data model that considers all components of the disparities in regional unemployment rates following the Vega and Elhorst's dynamic panel data model. Our findings show that men and women experience different levels of sensitivity to economic changes, which vary depending on the province without a definite geographical pattern. This confirms that gender unemployment rates are affected differently by economic cycles and demonstrates that these differences depend on geographical and regional factors, which is in line with previous literature. We shed light on the complex dynamics of the labor market within each region, highlighting the need to recalibrate policies based on the specific gender and regional cyclical sensitivity. Our findings advocate for the continued adoption of gender labor policies while also stressing the importance of customizing policies at the provincial level. Thus, our research underscores the need to continue developing regional analysis to perform policies that help population groups effectively switch off the consequences of economic fluctuations.