Abstract While the level of women’s participation in the labor market is on the rise in the world, the level of participation of Iranian women has not proportionately increased, and women constitute only a small portion of the active population in Iran. Among factors affecting women’s participation in the labor market are the decisions concerning retirement and the willingness to work by the middle-aged population. This study is an attempt to investigate the factors affecting women’s participation and retirement in the labor market in Tehran. According to the results of a cross-sectional data analysis in Tehran carried out in 2008, 20% (18 women) of the sample population were re-employed after retirement. The rate of women’s participation is very low during retirement and old age. According to the results of ‘Logit Regression Model’, the later the elderly people retire, the less likely they are to participate in the labor market after retirement. Women are especially more inclined to expedite the retirement process than men. In addition, aging and increased work experience helping women to get out of the labor market more easily and in contrast, educational achievements, family expenditure and the number of people supported by the retired person increase the participation level after middle age.