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This study investigates how female labor participation affects the productivity of Colombian manufacturing firms from 2013 to 2020, using Annual Manufacturing Survey (EAM) and Technological Development and Innovation Survey (EDIT) data. By categorizing firms according to the proportion of female workers, the research compares the total factor productivity (TFP) of female-dominated firms with that male-dominated firms. The findings indicate that women’s labor output elasticity surpasses that of men, leading to higher productivity in female firms, particularly in low and medium-tech SMEs. These results challenge traditional gender biases in labor markets by demonstrating the economic value of women’s participation in the workforce. The evidence supports the implementation of gender-sensitive labor regulations, inclusive educational programs, and leadership development initiatives. Eventually, the study advocates for a more equitable labor environment that not only enhances productivity but also empowers women economically and socially.
