Women's Power, Equality's Balance? The Relationship Between Female Employment and Income Distribution in Mediterranean Countries

Introduction: This study examines the impact of female employment on income inequality in Mediterranean countries such as Turkey, Greece, Italy, and Spain, using annual panel data covering the period 1991–2022. The primary focus of the research is to determine whether female employment has a mitigating effect on income inequality in the selected countries. Method: The Gini index is utilized to represent income inequality, with the female employment rate acting as the central explanatory factor. Inflation, HDI and GDPPC are included as control variables. The analysis utilizes a Panel ARDL model, which accommodates variables with mixed levels of stationarity. Results or Findings: The findings indicate that women's employment has a statistically significant and negative impact on income inequality in the long run. Conversely, inflation increases income inequality, while economic growth decreases it. In the short run, increases in women's employment have a significant impact on reducing income inequality. Panel Granger causality analysis reveals a bidirectional causal relationship between women's employment and income inequality. Discussion or Conclusion: This result highlights the interplay between women’s economic participation and income distribution, emphasizing that female employment is a key instrument for achieving social and economic justice.