Economic and Planning Research

Women, as half of the population, play a significant role in the development and growth of any country. The industrial sector has consistently drawn the attention of policymakers, with one of its key concerns being women's employment and the impact of related variables on their participation in this sector. In Iran, the labor market holds particular importance due to various economic and social factors. Over recent years, the supply of labor has consistently exceeded demand, a trend that is expected to intensify in the future, necessitating the evaluation and analysis of influencing factors. Moreover, the labor market is one of the four critical markets in the economy, given its profound influence on and interaction with other economic markets. The balance or imbalance of labor supply and demand serves as a crucial indicator of macroeconomic performance in any country. Given the importance of women's employment in Iran's industrial workshops, this article assesses the factors affecting women's participation in 24 industrial activities, categorized according to the two-digit codes of the International Standard Industrial Classification (ISIC), fourth edition. The analysis focuses on industrial enterprises employing 10 or more people during the period from 2004 to 2020. This research derives the labor demand function by minimizing the firm's cost function, in accordance with Shephard's Lemma. The findings reveal that value-added and employment levels from the previous period have a greater impact on women's employment compared to other influencing variables.