Efficient: Indonesian Journal of Development Economics
Vol. 8 No. 3 (2025)

Impact of Digital Technology Access and Structural Factors on Women’s Labor Force Participation in Indonesia

Riski Aprilianti Baharuddin (Unknown)
Retno Fitrianti (Unknown)
Rhena J (Unknown)



Article Info

Publish Date
04 Dec 2025

Abstract

This study examines the effects of digital technology access, gender equality, regional economic development, and minimum wage policy on women’s labor force participation in Indonesia. Using an annual provincial panel data set for the period 2015-2024 (t = 10), yielding 340 annual observations, the analysis applies a dynamic panel regression based on an Error Correction Model to distinguish long-run relationships from short-run dynamics. The results confirm a long-run relationship between digitalization, the gender development index, gross regional domestic product per capita, the provincial minimum wage, and women’s labor force participation. In the long run, the gender development index, gross regional domestic product per capita, and the provincial minimum wage have positive and statistically significant effects on women’s participation, while digitalization has a positive but not yet significant effect. In the short run, changes in digitalization, the gender development index, and gross regional domestic product per capita positively and significantly affect changes in women’s labor force participation, whereas changes in the provincial minimum wage are not significant. These findings suggest that digitalization mainly acts as a short-run opportunity trigger, while progress in gender equality, rising regional prosperity, and an adequate minimum wage function as key structural determinants of stronger women’s labor force participation in the digital economy.

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Journal Info

Abbrev

efficient

Publisher

Subject

Economics, Econometrics & Finance

Description

Efficient Journal is a journal base on the economics and development studies. This journal publishes a research paper related to specific themes such as macro economics, small and medium enterprises, public policy, monetary economics, development studies, international economics, trade economics, ...