As digital technologies spread rapidly across developing economies, governments increasingly view them as tools to expand women’s economic opportunities, particularly in countries where female labor force participation remains low. History offers a cautionary note. Past technological transitions have often benefited men more than women, favoring tasks and sectors where men were already concentrated and potentially widening employment and income gaps. Whether the current digital transition follows a different path is therefore an empirical question with significant implications for policy.

A recent study takes up this question using data from the World Bank Digital Gender Gap and Economic Opportunities Survey (DGGEOS, 2023), covering 4,500 working-age adults across the Mashreq region. Rather than focusing narrowly on device ownership or internet access, the analysis examines two distinct dimensions: digital skills (such as proficiency with computers and digital platforms) and digital use (such as having an email address or using mobile and internet banking). These measures better capture whether individuals can actually use digital tools for work and income-generating activities. The study then links these indicators to outcomes including employment status, earnings, online safety practices, productive internet use, caregiving responsibilities, and access to remote work.

Three patterns emerge from the data.

  1. The link between digital adoption and employment is strong, particularly for women. Increasing digital use by one standard deviation — roughly the shift from occasional use of a few tools to regular use of several tools such as email and mobile banking — is associated with a 5.5-percentage-point increase in the likelihood of being employed, while a comparable increase in digital skills predicts a 3.7-percentage-point increase. Importantly, the association with employment is 26–27 percent stronger for women than for men — a difference exceeding those related to household wealth or individual autonomy — suggesting that improving women’s digital capabilities could be a high-return pathway to raising female participation where baseline employment is low.

  2. Greater digital use is associated with higher earnings among those already employed. A one-standard-deviation increase in digital use corresponds to up to 33 percent higher annual earnings, depending on gender and sector. In administration, education, and health services the association is significantly stronger for women, while in other sectors both men and women benefit similarly. This points to the role of job tasks and sectoral composition in shaping the returns to digital adoption, and it highlights where upskilling of women might yield the greatest payoffs.

  3. Digital skills appear to reduce several barriers that often limit women’s participation. Women with stronger digital skills report greater adoption of online safety practices, more frequent use of the internet for job search, training, and accessing services, greater reliance on digital tools for professional tasks, and fewer care-related constraints affecting their work.

Across these aspects, the positive associations with skills and use are consistently more substantial for women. At the same time, the evidence also reveals important limits. Despite the spread of digital technologies, about 80 percent of respondents report never having worked remotely. Remote work remains relatively uncommon even among highly educated workers, and although digital skills increase the likelihood of remote work, women remain less likely than men to access these opportunities.

These findings suggest that digitalization can influence women’s employment through several channels: improved employment prospects, higher earnings, safer and more productive internet use, and reductions in care-related constraints. However, digital skills alone cannot overcome rigid workplace structures, childcare shortages, or restrictive social norms. Digitalization does not automatically produce gender equality. Its impact depends on who acquires digital skills, how technology is used, and whether existing barriers are addressed.

 

Policy Considerations

Several policy priorities follow from these findings.

  1. Expanding access to relevant digital skills, both foundational and job-specific, can improve women’s employability and earnings, particularly in sectors where returns to digital adoption are strongest. Training programs should respond to women’s needs and align with labor market demand.

  2. Cyber-safety training and practical digital applications can also support safer and more productive use of digital tools.

  3. Expanding flexible work arrangements and caregiving support could reduce care-related constraints and improve access to remote work.

  4. Finally, reducing affordability and connectivity barriers to devices and broadband, especially for women in low income and rural households, remains essential — inclusive digital skills development cannot happen without inclusive digital access.

The evidence from this study challenges the view that technological transitions inevitably disadvantage women. The digital transition is not inherently widening gender gaps; in fact, it shows meaningful potential to narrow them. With policies that strengthen women’s digital skills, promote safe and productive technology use, connect training to jobs, and support flexibility and care, the digital transition can increase participation, improve job outcomes, and contribute to more inclusive labor markets.

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