Digital Jobs and Gender Inequality: Lessons from Mozambique’s Labor Market

A study by UNU-WIDER and partner institutions finds that digital job platforms in Mozambique have limited impact on employment, with men benefiting more than women, who face higher reservation wages and lower job-search intensity. The findings suggest that digital platforms alone cannot bridge labor-market inequalities and must be complemented by broader employment and gender-inclusive policies.

Digital labor-market platforms have emerged as potential solutions to youth unemployment, yet their actual effectiveness remains uncertain, particularly in developing economies. A new study by researchers from UNU-WIDER, the University of Copenhagen, the University of Eduardo Mondlane, and the Mozambican Ministry of Economy and Finance examines how these platforms impact employment outcomes in Mozambique. Using a randomized encouragement design embedded within a longitudinal survey, the research evaluates two platforms: Emprego, which caters to formal job seekers applying for vacancies, and Biscate, which connects workers with clients for informal, gig-based work. The findings reveal that while men experience moderate benefits, women generally do not, and in some cases, their engagement in the labor market declines. These results highlight how digital platforms may unintentionally reinforce existing labor-market inequalities instead of reducing them.

Youth Unemployment and the Digital Solution

Youth unemployment is a major challenge across Africa, with structural barriers such as high search costs, unreliable job market information, and restrictive social norms limiting young people’s access to work. Digital job platforms promise to alleviate some of these frictions by reducing search costs, broadening job access, and improving employer-worker matching. However, previous studies suggest that online job searches often lead to limited employment gains, especially for individuals with no verifiable work history. The situation in Mozambique, a country with a large informal labor sector, provides an opportunity to assess whether digital platforms genuinely improve employment outcomes or merely replicate existing inequalities.

The study focuses on graduates from Mozambique’s Technical and Vocational Educational and Training (TVET) institutes. Participants were randomly divided into three groups: one received encouragement to register on Biscate, another was nudged toward Emprego, and a control group received no intervention. The study tracked employment outcomes, wages, job quality, and job-search behaviors over multiple rounds of data collection. Although encouragement led to increased platform registration, many individuals in the treatment groups did not use the platforms, and some in the control group registered independently. To account for this, the researchers applied various econometric techniques to isolate the causal effects of platform engagement on employment outcomes.

Limited Impact of Digital Job Platforms

Despite the promise of digital labor platforms, the study finds no statistically significant impact on employment rates, wages, or job quality across the full sample. While some individuals who engaged with Biscate experienced slight improvements, the effects were too small to conclude that the platform significantly enhanced job-market prospects. Emprego, which focuses on formal employment, also failed to produce notable improvements for job seekers.

A key factor contributing to these results is excess labor supply on both platforms. Job competition is intense, making it difficult for job seekers to stand out. For instance, each formal job listing on Emprego received an average of 300 applications, significantly reducing an individual applicant’s chances of securing employment. Meanwhile, Biscate provided slightly better outcomes for some users, but it still faced an oversupply of workers in informal job categories, limiting the potential impact of the platform. These findings align with previous studies suggesting that while digital platforms can facilitate job searches, they do not necessarily translate into better employment outcomes.

Gendered Disparities in Digital Job Search

The study reveals significant gender disparities in how men and women engage with and benefit from digital job platforms. Men were more likely to respond to the encouragement nudge, register on the platforms, and actively use them for job searching. Women, on the other hand, were significantly less likely to engage with these platforms. Among those who did register, male users saw moderate employment improvements, particularly in job quality, whereas female users experienced little to no improvement.

One particularly striking finding is that women who engaged with the platforms reported higher reservation wages and lower job-search intensity. This suggests that rather than increasing their employment prospects, the platforms led some women to raise their expectations for wages, potentially discouraging them from accepting available job offers. Additionally, the types of job opportunities available through these platforms may be skewed toward male-dominated industries, reinforcing occupational segregation. Factors such as safety concerns, employer biases, and social norms that restrict women’s mobility likely contribute to these trends.

Policy Lessons for Inclusive Employment Solutions

The findings have important policy implications. Digital job platforms alone are not sufficient to address youth unemployment, particularly in economies where the formal labor market remains weak. Instead, policymakers should focus on reducing gendered employment barriers and improving job-matching tools that account for social constraints and biases.

To enhance the effectiveness of digital job platforms, several policy interventions could be considered:

• Skill verification and mentorship programs: Providing digital platforms with built-in credential verification and mentorship programs could help job seekers differentiate themselves in competitive markets.
• Targeted support for women: Designing digital platforms to include safer job opportunities, flexible work arrangements, and targeted upskilling for women could improve engagement and employment outcomes.
• Encouraging informal work opportunities: Given that the formal job market is limited, expanding opportunities within the informal sector and improving protections for informal workers could provide better employment prospects.
• Reducing information gaps: Many job seekers have inaccurate expectations about wages and job availability. Providing labor-market information through digital platforms could help job seekers make better-informed decisions.

A broader conclusion from the study is that digital labor platforms are not a one-size-fits-all solution to unemployment. While they may provide some benefits, particularly for young men in informal sectors—they fail to address deeper structural problems such as limited job openings, excess labor supply, and gender disparities in employment access. The findings suggest that digital employment interventions must be accompanied by broader labor-market reforms, including investment in education, social policy changes, and targeted strategies to support women’s workforce participation.

Without complementary measures, digital job platforms risk perpetuating rather than eliminating labor-market inequalities. Policymakers and platform designers must carefully consider how digital solutions interact with existing economic and social constraints to ensure they create meaningful opportunities for all job seekers, rather than reinforcing existing disparities.