Women’s employment and the green transition in Rwanda’s urban construction sector: insights from firm-level data

This study examines the relationship between the green transition and female employment in Rwanda’s construction sector, influenced by sustainability policies such as the Green Building Code. Using a firm-level survey conducted in Kigali in 2024, we analyze data from 545 firms across the construction value chain, employing a Green Index to quantify firms’ sustainability practices. The empirical analysis relies on OLS IV estimation to address potential endogeneity concerns. Our findings indicate a positive association between green practices and female employment shares, particularly in permanent roles, suggesting that sustainability-driven transformations can contribute to more equitable labor market outcomes. The study further highlights sectoral heterogeneity, with supplier and construction firms showing the strongest employment gains for women. Government initiatives enhance these effects, highlighting the importance of coherent policy frameworks. However, the role of managerial attitudes remains unclear, indicating a need for further research on organizational dynamics. The analysis also highlights disparities in access to green training, with female-managed firms less likely to receive training, potentially limiting their ability to benefit from green transitions. These findings provide insights for policymakers aiming to align green transition policies with gender-inclusive economic development in Rwanda and the broader context of Sub-Saharan Africa (SSA).