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What is women's labor force participation?

The gender gap in workforce participation has outlasted decades of rising female education. Nobel laureate Claudia Goldin's work helps explain why, alongside the economic evidence behind it.

In 2024, women made up 41.2% of the global workforce, yet this figure understates a deeper imbalance. In many countries, women have pulled ahead of men in higher education, but this progress has not carried over into comparable gains in employment or leadership. The World Economic Forum's Global Gender Gap Report 2025points to systemic inefficiencies in translating educational preparedness into economic engagement, compounded by caregiving patterns that disproportionately fall on women.¹

Why that gap persists, and what it would take to close it, is central to the work of Claudia Goldin, a labor economist and economic historian at Harvard University who received the 2023 Nobel Memorial Prize in Economic Sciences for advancing our understanding of women's labor market outcomes. Her research traced nearly two centuries of women's employment in the United States, uncovering how the nature of work, education, social norms, and caregiving interact to shape participation over time.²,³

How is women's labor force participation measured?

The participation rate captures connection to the labor market rather than success within it. A woman who has stopped looking for work is not counted as unemployed, and she disappears from the rate entirely.⁴

Measurement gaps also affect women disproportionately. Without the right survey questions, workers who put in fewer hours, hold unpaid roles, or work from home are more likely to go uncounted. Women are more often found in these situations, which means female participation tends to be underestimated to a larger extent than male participation. Cross-country comparisons add another layer of complexity, as definitions of working age and survey methods vary between countries.⁵

Why women's labor force participation matters for economies

When a significant share of working-age women remains outside the paid workforce, the cost shows up at the national level. The OECD estimates that closing gender gaps in labor force participation and working hours could add 0.23 percentage points to average annual GDP growth across OECD countries by 2060.⁶

The Nobel Committee, in summarizing Goldin's contributions, described this as both an equity concern and a matter of economic efficiency. When workers are not assigned to the jobs best suited to their skills, the resulting misallocation carries significant economic costs.⁷

How does women's labor force participation vary across countries and life stages?

What explains the rise and fall of women's labor force participation?

The patterns described above raise a deeper question: what determines whether women's participation rises or falls as economies develop? Goldin's research points to three interconnected factors.

What policies and workplace changes increase participation?

Final thoughts: why women's labor force participation remains a central economic question

The gap between men's and women's labor force participation has outlasted decades of rising female education. Goldin's research helps explain why: participation responds not to education alone, but to a wider set of conditions, from how caregiving costs are distributed to how professional work is structured and rewarded. Where those conditions improve, through affordable childcare, well-designed parental leave, and more flexible work, participation tends to follow.

To learn more about Claudia Goldin's work and other research on labor economics, visit UBS Nobel Perspectives & Economics View. Our platform offers thought-provoking discussions and insights from Goldin and other Nobel-winning laureates across the field.

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