Technology and gender: Understanding the changing dynamics of female unemployment in the G7 countries

Abstract

Technology has profound effects on labour market dynamics. Numerous studies have highlighted the unique opportunities and challenges that technological change presents to specific demographic groups. The aim of the study is to examine the long-term impact of technological changes within organisations on female unemployment at a macro level. From the perspective of the contingency approach and economic growth theories, the research conducts a panel cointegration analysis employing CCE-MG and AMG long-term panel cointegration estimators. The data on the female unemployment rate, the percentage of R&D expenditure in GDP and the ICT patents in total patents in the G7 countries for 1985–2020 is sourced from the OECD statistics. The analysis indicates the presence of an effect of technological change on the female unemployment rate as well as the national variations in their relationship. In particular, in three countries out of seven (Germany, the UK, the USA), there is the relationship between technological advancements and female unemployment. For the most part, increases in the percentage of R&D expenditure and ICT patents augment the female unemployment, though in Germany a rise in R&D expenditure leads to a decrease in it. The results will contribute to understanding the impact of technology-driven changes in organisations on gender-based labour inequality. The research highlights the complexity of the impact of technological advancements on the female employment and underscores the need for shaping related government policies by considering each country’s specific conditions.