Toward sustainable development: Does digitalization narrow the gender gap in the labor market?

Abstract

AbstractThe direct and moderating impact of digitalization on the gender gap in the labor force participation rate is explored in this study. By analyzing the panel data of the G20 countries for the period of 2006–2021, we find that (1) the rising level of digitalization tends to narrow the gender gap in the labor force participation rate, with a greater gender gap‐narrowing effect in high‐income countries than in upper‐middle and lower‐middle income countries. (2) The interaction between digitalization and globalization has a small impact on the gender gap in the labor force participation rate in the full sample of the G20 countries, but the results are significantly different in countries divided by income level: the interaction is more likely to narrow the gender gap in the high‐income countries but widen the gender gap in upper‐middle and lower‐middle income countries. The gender gap‐widening effect is greater in upper‐middle income than in lower‐middle income countries. (3) Digitalization is more likely to increase the female employment rate and reduce the female unemployment rate, while it has the opposite effect on males; the female employment improvement effect is observed in the services sector.