Energy access and female labor force participation in developing countries

Abstract

Access to reliable modern energy services and female economic empowerment are vital for sustainable development of developing countries. While micro-level evidence suggests that energy access can alleviate women's household burdens and enhance their labor market participation, there is little macro-level evidence on this relationship and limited insights on how institutional environments influence it. This study fills this gap using a national-level dataset covering 78 developing countries from 2000 to 2020 and analyzing how access to electricity and clean cooking fuels affects women's labor supply and demand, respectively. Results show that clean energy access increases female labor force participation, particularly in rural areas and small island developing countries. Electricity access reduces female unemployment, especially in urban areas and African countries. Moreover, the importance of country risk and governance capability in shaping this relationship is highlighted. These findings provide valuable insights for enacting synergy policies targeting sustainable development goals.