Gender inequalities in the labour market undermine development opportunities for Lao PDR. The purpose of this research paper is to provide the evidence base for dialogue and advocacy and to make the case that investing in women and girls is necessary for Lao PDR to achieve its demographic dividend and economic diversification ambitions. The findings of this research show that closing gender gaps in Lao’s labour market could generate significant economic gains.

This report has two parts. The first part estimates the gender dividend based on simple measures that utilise available Labour Force Survey data. Existing labour market gaps in Lao PDR include variations in the rates of male and female labour force participation in 2017 and 2022 in the Labour Force Survey data. For both years, more female than male workers were outside the labour force. The average wage was also higher for male workers compared to female workers.

The second part of the report provides analyses of women’s employment potential from economic diversification and expansion of non-resource sectors. New connectivity infrastructure provides an opportunity for Lao PDR to expand its economic base to non-resource sectors, including logistics and transportation, agriculture and light industry, and tourism. An assessment of the employment structure using 2022 Labour Force Survey data reveals that in a few traditional sectors, women have a higher share of employment than men. Such sectors include manufacturing, education, accommodation, and food services (tourism), trade and other services. Expanding these sectors would likely increase women’s employment.