The impact of digital economy on women’s employment: evidence from selected European and Asian countries

Abstract

The rapid development of the digital economy has brought significant changes in various aspects, including production methods and the provision of services. These changes have reshaped workforce requirements and skills, presenting opportunities to enhance women’s participation in economic activities. This paper assesses the impact of the digital economy on women’s employment in several European and Asian countries. The study uses panel data encompassing 53 countries collected from the World Bank, ITU, and UNDP databases. The principal component analysis was employed to calculate a composite index measuring the development of the digital economy in these countries. This index was then used to assess the impact of the digital economy on women’s employment through regression analysis of panel data. The results indicate that the digital economy positively impacts women’s employment. However, the influence of the digital economy on women’s employment varies among countries and different income groups. Specifically, the digital economy increases women’s employment in high-income countries but has a negative impact on women’s employment in middle-income countries. Based on the findings, this study proposes recommendations to policymakers for optimizing the potential of the digital economy.