The Impact of Digital Economy on Female Employment in Iran’s Provinces

Document Type : Research Paper

Authors

1 Master’s Student in Economics, Faculty of Economics, Management, and Administrative Sciences, Semnan University, Semnan, Iran

2 Associate Professor of Economics, Faculty of Economics, Management and dministrative Sciences, Semnan University, Semnan, Iran

3 Professor of Economics, Faculty of Economics, Management and dministrative Sciences, Semnan University, Semnan, Iran

Abstract

The rapid expansion of digital technologies in recent years has transformed labor market structures and created both new opportunities and challenges for female employment. However, empirical evidence regarding the impact of the digital economy on women's employment, particularly in developing countries, remains limited and, in some cases, inconclusive. Therefore, this study aimed to examine the effect of the digital economy on female employment across Iranian provinces and to investigate the role of women's higher education in this relationship. To this end, a composite Digital Economy Index was first constructed using Principal Component Analysis (PCA) based on information and communication technology (ICT) infrastructure indicators. Subsequently, employing panel data from 31 Iranian provinces over the period 2016–2022, the research model was estimated using the Difference Generalized Method of Moments (DGMM) approach. The results indicate that the Development of the digital economy was directly linked to a reduction in women's employment. Nevertheless, higher levels of women's education moderated this negative relationship, thereby alleviating its adverse impact. Furthermore, the share of industrial employment in total employment and sanctions both had negative and statistically significant effects on female employment. Diagnostic tests confirmed the validity of the instruments and the adequacy of the model specification. Overall, the results demonstrated that the development of the digital economy alone is insufficient to enhance female employment. Realizing its positive employment effects requires adequate human capital, technology-oriented skills, and the provision of appropriate conditions that enable women to adapt effectively to the transformations associated with the digital economy.

Keywords

References

منابع
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Innovation Economic Ecosystem Studies
Volume 6, Issue 1
April 2026
Pages 129-148

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