FEMISE is proud to launch its latest series of policy briefs, stemming from insightful conference papers presented at the FEMISE annual conference. These briefs are rooted in scientific research and offer actionable political recommendations to address critical challenges in the Euro-Mediterranean region.

The objective if this new series of Policy Briefs is to provide policy makers, international organisers, researchers and stakeholders in the EU-Med region with research-based policy recommendations that: advocate a better EU-Med integration;  promote mobilization of investments towards green transition and sustainable economies; empower young people through innovation and entrepreneurship advocacy; and facilitate a better and more equal integration of youth and women, aiming to create pathways for decent employment.

These Policy Briefs aspire to drive impactful dialogue and action across the EU-Med region.

Context

Across the Euro-Mediterranean region, women’s participation in the labour force remains persistently low, particularly in South Mediterranean countries, where structural, institutional, and cultural barriers continue to limit women’s economic inclusion. At the same time, many countries in the region rely heavily on fossil fuel subsidies as part of their energy and social policies—often to maintain low energy prices and support economic stability.

While fossil fuel subsidies are widely debated for their environmental and fiscal costs, their gendered labour market effects remain largely underexplored. These subsidies tend to disproportionately benefit energy-intensive and male-dominated sectors, while diverting public resources away from services that support women’s employment, such as childcare, education, and skill development. In a context of energy transition and climate commitments, understanding how energy policies interact with gender gaps in labour markets has become increasingly important.

This policy brief situates fossil fuel subsidy reform at the intersection of energy transition, gender equality, and inclusive growth. It highlights the need to reassess energy policies not only through an environmental or macroeconomic lens, but also through their implications for women’s economic empowerment and labour market participation across the Euro-Mediterranean region.

Summary

This policy brief examines the relationship between fossil fuel subsidies and female labour force participation in the Euro-Mediterranean region, drawing on empirical evidence from 27 EU countries and 7 South Mediterranean countries over the period 2010–2022. Using quantile regression techniques, the analysis captures how the effects of energy subsidies differ across countries with varying levels of women’s labour market participation.

The findings show a robust and negative association between fossil fuel subsidies and female labour force participation across all levels of participation, with the effect being strongest in countries where women are already least integrated into the workforce. This suggests that fossil fuel subsidies tend to reinforce existing gender inequalities by supporting male-dominated sectors and limiting opportunities for women to engage in paid employment. The results also reveal persistent structural disadvantages in South Mediterranean countries compared to Europe, reflecting deeper institutional and policy barriers to women’s labour market inclusion.

The brief highlights that reallocating public spending away from fossil fuel subsidies can create fiscal space for gender-responsive policies, including childcare services, targeted skill-building programmes, and support for women’s entrepreneurship—particularly in the context of the green transition. It also underscores the positive role of women’s political participation in shaping inclusive labour market outcomes.

Overall, the policy brief argues that fossil fuel subsidies are not gender-neutral and that their reform can serve as a powerful lever for advancing women’s economic participation. By redirecting energy subsidies towards social infrastructure and gender-sensitive labour market policies, Euro-Mediterranean countries can simultaneously support energy transition, economic development, and greater gender equality in employment.

Read the full Policy Brief no.12 here.

This Policy Brief is part of the FEMISE Policy Brief Series and is based on the FEMISE Conference Paper no.14. entitled: «Energy Policies and Labour Market Gender Gaps: The Case of Euromed Region» with the same authors.

The opinions and contents of this document are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of FEMISE, IEMED, ERF or the AECID