Skill-Biased Technological Change and Its Impacts on Labour Market Polarisation

Abstract

Gender inequality continues to be a significant issue in the global labour market, with women frequently encountering wage disparities, occupational segregation, and restricted access to skills training, as well as informality and workplace discrimination. These challenges reduce women's participation in high-paying sectors and confine many to low-wage, insecure and informal employment. This paper underscores the importance of labour market interventions as essential instruments for tackling gender disparities and fostering inclusive economic growth. Key interventions encompass the enforcement of anti-discrimination laws, the bridging of wage gaps, and the promotion of equal opportunities in hiring and promotion. The paper examines how expanding access to skills development particularly in science, technology, engineering, and mathematics (STEM) empowers women to compete in high demand sectors such as ICT and engineering. It also explores additional interventions that support work–life balance, including parental leave, flexible work arrangements, and childcare services, which enable women to reconcile family responsibilities with professional growth. Furthermore, the paper addresses the challenges of extending social protection to informal workers, with a focus on ensuring that women in vulnerable employment have access to healthcare, pensions, and maternity benefits. The paper explains policies that prevent workplace harassment and promote female entrepreneurship, which further strengthen women's labour market positions. The method applied is by contacting relevant texts and journals for information. The research concludes that addressing gender issues through comprehensive labour market policies is not only a matter of equality but also an economic necessity, as empowering women in the workplace contributes to productivity, innovation, and sustainable development.