Toward SDG 5 and SDG 8: How Income, Inflation, and Economic Policy Uncertainty Shape Women's Employment Across G7 Countries

ABSTRACT This study investigates the macroeconomic determinants of female labor force participation across G7 countries, Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, focusing on the roles of energy consumption, inflation, income, and economic policy uncertainty. Employing panel quantile regression techniques, complemented by fixed effects robustness checks with Driscoll‐Kraay standard errors, the analysis reveals that income is the most consistent and significant driver of FLB across all income levels. Economic policy uncertainty, while generally positive in its impact, demonstrates sensitivity across quantiles and estimation techniques. Inflation shows a notable positive effect only at higher quantiles, indicating differentiated economic pressures across income groups. In contrast, aggregate energy consumption does not significantly influence female labor participation; however, the interaction between renewable energy and policy uncertainty indicates modest potential for green transitions to support women's employment, particularly among lower and middle‐income cohorts. These findings offer differentiated insights into how macroeconomic conditions affect women's labor outcomes, reinforcing the importance of income equality, economic stability, and sector‐specific interventions. Rather than general alignment with aspirational policy narratives, the results provide evidence‐based support for Sustainable Development Goals (SDG) 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth), while highlighting the conditional relevance of SDG 7 (Affordable and Clean Energy) through gender‐inclusive energy policies. The study contributes novel quantile‐based evidence to current debates on gendered labor dynamics and proposes targeted strategies to advance inclusive labor markets in high‐income economies.