Quarterly Journal of Social Development (Previously Human Development)

Quarterly Journal of Social Development (Previously Human Development)

The Impact of Gender Inequality and Labor Force Participation on GDP Per Capita and Economic Development in Iran

Document Type : Research Paper

Authors
Nooshin Osooli 1
Afshin Baghfalaki 2
1 Department of Agriculture, Khor. C., Islamic Azad University, Khorramabad, Iran
2 Department of Economics, Ker. C., Islamic Azad University, Kermanshah, Iran
10.22055/qjsd.2026.48022.2988
Abstract
The aim of this study is to investigate the impact of gender inequality and labor force participation on per capita gross domestic product and economic development in Iran during the period of 1995-2021. The data for Iran, covering the period under study, were collected through accessing the publication databases of the Statistical Center of Iran, the Central Bank of Iran, and the Management and Planning Organization of Iran’s websites. The econometric estimation of the model was conducted using Eviews 13 software and employing econometric tests. The research method in this study is causal-comparative. Subsequently, the model was estimated using the Autoregressive Distributed Lag (ARDL) approach with extended distributed lags, and the long-run and short-run coefficients of the model were calculated. This model includes variables such as economic development indicators, gross capital formation, gender inequality and equality indices, female and male labor force participation rates, population, and trade liberalization. The results showed that in the short-run ARDL model, all coefficients were significant at the 5% level. In the short-run, the impact of the gender inequality index and male labor force participation rate on economic development was negative, while the impact of real gross capital formation, gender equality, female labor force participation rate, population, and trade liberalization was positive. It takes 1.95 years for the model to move from short-run to long-run equilibrium. In the long run, gender inequality, male labor force participation rate, population, and trade liberalization negatively impacted per capita GDP in Iran. However, the female labor force participation rate had a positive impact on per capita GDP and economic development; as women’s participation increases, this indicator, as a measure of economic development, also increases. Therefore, efforts to reduce this inequality and increase women’s participation in economic activities will lead to higher economic growth, increased GDP, and consequently, economic development.
Keywords
GDP Per Capita
Gender Inequality
Iran's Economic Development
Labor Force Participation
Subjects
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Quarterly Journal of Social Development (Previously Human Development)
Volume 20, Issue 1 - Serial Number 77
Vol. 20, No. 1, Autumn 2025
Summer 2025
Pages 287-312