Women's Empowerment Matters: Conditional Evidences on Income Level and Governance, with Reference to Mongolia

Abstract

Purpose: This research explores the intricate influence of women's empowerment on income levels and governance quality in developing nations with Mongolia as a case study. Design/methodology/approach: This study analyzes data from 114 developing countries covering from 2003 to 2022, with a focus on 26 low-income counties to highlight the role of governance. Findings: The major findings are: (1) Increasing women's empowerment positively affects income levels, with this association being conditionally amplified by high female employment and labor force participation; (2) Female empowerment in economic and political spheres significantly influences corruption control in low-income countries. This effect is more pronounced in smaller populations and varies based on the level of female representation, with female employers and parliamentary representation complementing each other in controlling corruption; and (3) In the case of Mongolia, political empowerment does not significantly affect income levels, while economic empowerment through female employers does have an effect. However, this impact weakens when combined with political empowerment. Research limitations/implications: Complementary aspects of women's empowerment enhance income levels. Thus, policies should adopt an integrated approach, promoting gender equality in the workforce while ensuring significant female representation in decision-making positions. For robustness, it should be desirable to consider other variables than control of corruption as a proxy for governance. Furthermore, additional developing countries in Latin America, Africa, or Asia could be taken into consideration. All of these remain major caveats and reserved for further studies. Originality/value: Existing studies have explored the role of female empowerment in development, but few have analyzed the issue empirically. This study examines both women's economic and political empowerment, using corruption as a proxy for governance. It provides valuable insights into how women's empowerment in developing countries affects income levels and governance in complex ways, highlighting the need for nuanced policy approaches. © 2025 Elsevier B.V., All rights reserved.