Woman racing against a robot, symbolizing the changing dynamics of work and wages in the digital age.

Tech vs. Women: How Automation is Rewriting the Rules of Work and Wages

Avery Sinclair in Business & Economy December 2025 • 4 min read.

"Is technology really widening the gap, or is it paving the way for a more equitable future? Unveiling the shifts in labor dynamics across OECD countries."

The modern workplace is in constant flux, shaped by rapid technological advancements and evolving social dynamics. Over the past few decades, we've seen significant shifts in the structure of wages and employment across the globe. While some gaps have narrowed, others have widened, leading to a complex interplay of progress and persistent inequality.

One of the most notable changes is the narrowing of the wage gap between men and women in many countries. However, this progress exists alongside a widening divide between skilled and unskilled workers in certain sectors. These shifts coincide with the rise of information, communication, and computation technologies, prompting important questions about the relationship between technological change and labor market equality.

Is technology a force for division, exacerbating existing inequalities? Or does it hold the potential to level the playing field, creating new opportunities for a more diverse and equitable workforce? Understanding these dynamics is crucial for shaping policies and practices that promote inclusive growth and shared prosperity.

The Central Question: How Does Technology Impact Gender and Skill?

Woman racing against a robot, symbolizing the changing dynamics of work and wages in the digital age.

At the heart of the debate lies the question of complementarity. Do new technologies favor certain skills or demographics over others? The answer depends on the interplay between capital, skill, and gender. Men and women often possess different skill sets, and the demand for these skills can fluctuate with technological advancements.

For example, communication skills, often associated with women, may be highly complementary to information and communication technologies. Conversely, physical skills, traditionally associated with men, may be more easily substituted by automation technologies. This creates a dynamic where certain skills become more valuable while others become obsolete, impacting the relative wages and employment prospects of different groups.

Capital-Skill Complementarity: Does technology favor skilled workers over unskilled workers?
Capital-Gender Complementarity: Does technology disproportionately benefit one gender over the other?
Shifting Skill Demands: How do technological advancements alter the demand for specific skills, and how does this impact different demographic groups?

To unravel these complexities, researchers have developed frameworks to evaluate the effects of capital-embodied technological change. This approach considers how technological advancements, embedded within new equipment, influence relative wages and income shares across various types of labor. By analyzing these dynamics, we can gain insights into the winners and losers in the age of automation.

Navigating the Future of Work

The intersection of technology and labor is a complex and ever-evolving landscape. By understanding the dynamics at play, we can work towards creating a future where technological advancements benefit everyone, regardless of gender or skill level. Proactive policies, investments in education and training, and a commitment to inclusive practices are essential for ensuring a more equitable and prosperous future for all.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

Everything You Need To Know

How does technology impact the wage gap between men and women?

The impact of technology on the wage gap is complex. While the article suggests that in many countries there has been a narrowing of the wage gap between men and women, the influence of technology isn't straightforward. It explains that communication skills, often associated with women, may be highly complementary to information and communication technologies, potentially benefiting women. Conversely, physical skills, traditionally associated with men, may be more easily substituted by automation technologies, which could disadvantage men. The overall effect depends on various factors and the specific skills that become more or less valuable due to technological advancements.

What is Capital-Skill Complementarity, and how does it relate to technological advancements?

Capital-Skill Complementarity explores whether technology favors skilled workers over unskilled workers. Technological advancements, especially those embedded in new equipment, can influence relative wages and income shares across various types of labor. If new technologies primarily benefit skilled workers, the wage gap between skilled and unskilled workers might widen. This is because the demand for skilled labor increases, pushing up their wages, while the demand for unskilled labor may decrease or remain stagnant. The article highlights this as a key area of investigation when assessing how technology reshapes the labor market.

How does Capital-Gender Complementarity influence the dynamics between technology and gender in the workplace?

Capital-Gender Complementarity examines whether technology disproportionately benefits one gender over the other. The article suggests that the demand for specific skills fluctuates with technological advancements. If communication skills, often associated with women, are highly complementary to new technologies, women might benefit. Conversely, if automation primarily replaces physical skills, traditionally associated with men, men might face challenges. The interplay between capital, skill, and gender determines the relative impact, with technology potentially reshaping employment prospects and wages for both men and women based on the skills each group possesses.

In what ways do Shifting Skill Demands affect different demographic groups in the context of technological change?

Shifting Skill Demands refer to how technological advancements alter the demand for specific skills. This, in turn, impacts different demographic groups. As technologies evolve, certain skills become more valuable while others become obsolete. This can affect the wages and employment prospects of different groups. For instance, if information and communication technologies become prevalent, workers with strong communication skills might be in higher demand. If automation replaces manual labor, those with physical skills may face challenges. Analyzing these dynamics is crucial for understanding how technology reshapes the labor market and affects various demographic groups.

What proactive measures can be taken to ensure technological advancements benefit everyone, regardless of gender or skill level?

To ensure technological advancements benefit everyone, proactive policies, investments in education and training, and a commitment to inclusive practices are essential. Policies should focus on creating a future where technological advancements benefit all, regardless of gender or skill level. Investments in education and training are crucial to equip workers with the skills needed to thrive in the evolving labor market, specifically focusing on skills that are complementary to new technologies. Furthermore, inclusive practices in the workplace are critical for promoting equitable opportunities and shared prosperity for all demographic groups. By understanding the dynamics at play, proactive measures can help navigate the future of work effectively.