Understanding the Main Determinants of Telework and Its Role in Women’s Labor Force Participation

This paper studies telework as an opportunity to increase women’s labor force participation in Mexico. Using data on the availability and use of information technology in households, the paper models women’s labor force participation and worksite choice during the COVID-19 pandemic. The results show that telework can potentially increase female labor force participation, particularly among college-educated women. Although this is not the largest segment of women out of the labor force, as many as one in five women with higher education remain outside the labor market in Mexico. In addition, the findings show that family conditions are a clear divide in labor force status between men and women, whereas age, education, and socioeconomic status are not. Caring for children and looking after their husbands or partners seems to be a responsibility that affects women’s decision to work. To promote female workers’ engagement in the workforce, policies that encourage part-time and hybrid work arrangements, along with well thought out child and senior care programs and access to internet infrastructure need to be considered. Overall, bringing these workers into the labor force would result in productivity and growth gains for the country.