Twin Transition and Women’s Empowerment in the EU: Is There a Synergy Effect?

This study examines the effects of the digital economy, the circular economy and their integration, referred to as the twin transition, on women’s human capital, employment, and participation in decision-making in EU-27 countries over the period 2012–2020, using a fixed effects model, the generalized method of moments, and panel quantile regressions. The findings indicate that the digital economy significantly enhances women’s human capital, particularly in the lower and middle quantiles, while the circular economy shows limited effects across quantiles and is mainly significant in the dynamic generalized method of moments specification. The twin transition produces the strongest and most consistent improvements in human capital, benefiting countries with initially lower levels the most. Regarding employment, both digital and circular economies have generally positive effects on women, whereas the twin transition demonstrates strong, stable, and significant impacts across almost all quantiles, highlighting the synergy of combining both transformations. In terms of decision-making participation, the individual effects of the digital and circular economies are weaker and less consistent, with notable positive impacts mostly in mid- to upper quantiles and in higher-performing countries. The twin transition, however, shows clear positive and statistically significant effects in the mid- to upper quantiles. Digitalization and circular economy efforts each help women’s employment and skills, but together as a twin transition they have a stronger, more inclusive impact on women’s human capital, labor outcomes, and leadership participation. These findings highlight that policy strategies supporting the twin transition should consider different levels of women’s empowerment across countries. In contexts with lower empowerment levels, policies that expand women’s access to education and digital skills can strengthen human capital accumulation. At middle and higher levels, promoting women’s participation in green and digital sectors and supporting inclusive leadership opportunities may further enhance employment and decision-making participation.