On digital economy development and gender gap in labor force participation: a cross-countries perspective

This study examines the effect of digital economy development (DEDI) on the gender gap in labor force participation (LFP) using a panel dataset of 59 countries over the period of 2004–2022. Employing a fixed effect estimator, we find that DEDI is associated with a reduction in the gender gap, and this effect is more pronounced in countries with higher levels of female LFP. Our results show that high-income and highly digitalized countries are better positioned to benefit from the labor market opportunities generated by digitalization. Overall, while the digital economy contributes to narrowing the gender gap, its impact is most substantial in economies with inclusive labor markets, advanced digital infrastructure, and broader institutional support for women’s employment. Policy makers should promote gender-inclusive labor market policies and invest in digital skills training for women to effectively narrow the gender digital gap and maximize the benefits of DEDI.