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RESEARCH PAPER
Does Fiscal Devaluation Work for Everyone? Diversified Impact of Fiscal Devaluation on Employment Rates
1
Department of International Comparative Studies, SGH Warsaw School of Economics, Poland
Submission date: 2024-08-13
Final revision date: 2025-02-10
Acceptance date: 2025-02-17
Publication date: 2025-12-30
Corresponding author
Piotr Cizkowicz
Department of International Comparative Studies, SGH Warsaw School of Economics, Poland
Department of International Comparative Studies, SGH Warsaw School of Economics, Poland
GNPJE 2025;324(4):1-14
KEYWORDS
JEL CLASSIFICATION CODES
ABSTRACT
The study analyses the effects of fiscal devaluation on employment rates and finds that the significance and magnitude of this impact vary considerably by gender and age. The effect is substantially stronger for men than for women. For men, it is statistically significant across all age groups, with the strongest impact observed among the youngest cohort. For women, it is significant only in the 25–54 age group. Labour and product market regulations also influence the strength and variation of this effect, indicating that institutional quality significantly shapes the outcomes of fiscal reforms. The findings support combining fiscal devaluation with structural reforms aimed at enhancing labour market.
FUNDING
The authors are grateful for the financial support of this research by the National Science Centre in Poland under Grant (UMO-2017/25/B/HS4/02166) and Grant (UMO-2017/27/L/HS4/03320).
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