# **5. Conclusions and Policy Implications**

Limited access to and benefit from technology may hinder women’s access to economic opportunities, especially in conservative societies and in a context where e-learning and working from home became the new normal during the COVID-19 pandemic. Given how the pandemic accelerated reliance on and importance of technology and digital devices in terms of market access and income, these factors will only be more important in the future.

Within this context, the paper tests the hypothesis that digital inclusion and closing the gender digital divide would reduce the gender gap in labor force participation in the MENA region. Using a pooled cross section dataset of 13 MENA countries over four years (2018 to 2021), the female-to-male labor force participation ratio was regressed on an internet inclusion index. Another version of the model is estimated using the gender gap in access to the internet. Control variables include the structure of economic growth, population growth, openness of the economy, unemployment rate, educational attainment, formal and informal institutions, and years dummies.

The results show that digital inclusion would contribute to reducing the gender gap in labor force participation. It is worth noting that accessing the internet might not be sufficient to ensure women’s access to economic opportunities; affordability, relevance, and trust all play a role. Moreover, ensuring online privacy, encouraging girls to study STEM subjects, and providing women with the required digital skills are needed to increase women’s benefit from technology and thus female labor force participation. Other key drivers to close the gender gap include the economic growth structure and informal institutions. Equal gender roles in the society can reduce the economic gender gap.

The analysis has important implications for policies targeting women’s empowerment (SDG5) and aiming to reduce inequalities (SDG10). Ensuring women’s access to the internet is a necessary but not sufficient condition to transform the digital divide into a digital dividend and ensure that women benefit from being online. Bridging the digital divide requires ensuring the relevance of internet content, trust in internet privacy, and female e-inclusion policies. Moreover, closing the gender gap in labor force participation in the MENA region requires implementing policies and programs that address gender norms regarding girls’ and women’s mobility.

Finally, it is worth noting that the analysis has limitations that should be considered for future research. First, long panel data encompassing more countries and more than four years would allow researchers to consider factors that vary across countries in the region and across years. Second, digital solutions could help segments of women to better manage and balance familial obligations with paid work, based on the nature of work and economic activity. Besides, the extent of formal and informal employment in an economy affects interactions between the gender digital divide and the gender employment gap. Future research should consider how an inclusive internet environment would affect the different labor market outcomes in the MENA region.

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