Digitalization, Climate Change, and Labor Force Participation: Empirical Evidence and Policy Perspectives

Abstract

Objective:

This study examines the influence of digitalization and climate change on labor force participation in selected South Asian countries.

Research Gap:

There is very limited literature available on the influence of digitalization and climate change on labor force participation in context of the South Asian nations. The study will fulfill the gap by using the advanced econometrics techniques.

Design/Methodology/Approach:

The chosen time span for this analysis is from 2000 to 2023, and it has adopted the Cross-Sectionally Augmented Autoregressive Distributed Lag model to examine the connotation between digitalization, climatic change and labor force participation.

Theoretical / Practical Implications of the Findings:

The primary aim of this research is to find the effects of climate change and digitalization on labor force participation (LFP) in five South Asian countries. The empirical findings highlight a significant interconnection among digitalization, climate change and LFP. Particularly, the use of the internet and mobile phones significantly increases LFP and female labor force participation. However, the increase on CO₂ inversely affects LFP in the short and long run.

Originality/Value:

By focusing on the selected South Asian nations and also by segregating total LFP into male and female LFP, the study offers valuable insights for the policy practitioners. The study has employed the advanced econometrics techniques for the analysis.