Mapping the Determinants of Female Employment: Labour Market Areas and Spatial Spillovers

This paper examines the territorial determinants of female employment rates using labour market areas (LMAs) – functional units based on commuting patterns – to mitigate the Modifiable Area Unit Problem (MAUP). Drawing on detailed Spanish census microdata and spatial econometrics, we find that male unemployment negatively affects female employment through a discouraged worker effect, whereas higher shares of part‐time jobs, medium household income, and a greater proportion of immigrant women from emerging countries are associated with better female employment outcomes. Certain aspects of local economic structure, particularly a larger service sector, positively influence women's employment. Comparing spatial and non‐spatial specifications shows only modest gains, consistent with limited cross‐area spillovers when the analysis relies on functionally defined units. Overall, the evidence supports LMAs as appropriate territorial units and highlights the importance of care‐related and income‐based interventions, together with efforts to broaden sectoral opportunities for women and to improve data availability at the functional‐area level.