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This paper reexamines the evolution of women's labor force participation (LFP) and employment in Iran in light of five decades of census data from 1956 to 2006. We show that changes in schooling and economic structure have fundamentally transformed the nature of female LFP and employment in the country. Although women's overall LFP rate was slow to recover following a sharp drop in the aftermath of the 1979 Revolution, it has gathered momentum in recent years. More importantly, an increasingly larger proportion of educated women aged 20-50 years are employed in the private sector in professional positions in urban areas. This is quite different from the expansion of female employment before the Revolution, which predominantly consisted of jobs for very young, uneducated women in rural areas mostly as unpaid family workers in producing carpets and handicraft. We argue that economic and political factors after the Revolution have played central roles in shaping the new trends and show that they are likely to have played a far more important part than ideological ones, particularly Islamization, did in reducing female LFP and employment during the first decade of the Revolution. The reduction in female employment during that decade was essentially due to declines of private sector jobs, particularly low skill ones in rural handicrafts, closely connected with the disruption of production and trade in the aftermath of Revolution and the Iran-Iraq War. In recent years, however, it is unemployment among educated women that has risen sharply because their entry into the labor force has significantly outpaced their ability of find jobs. Still, this problem may be temporary because the service sector where female employment is most common and where the value added per worker is greater than in the rest of the economy is growing faster than other sectors.

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