nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2020‒02‒10
six papers chosen by
Viviana Di Giovinazzo
Università degli Studi di Milano-Bicocca

  1. Peningkatan Keuangan Inklusif Melalui Program Keluarga Harapan By Ngasuko, Tri Achya
  2. Menakar Pengguna Internet Banking Di Indonesia (Studi Kasus Susenas 2018) By Ngasuko, Tri Achya
  3. Was the Expansion of Housing Credit in Japan Good or Bad? By Charles Yuji Horioka; Yoko Niimi
  5. How Enhancing Gender Inclusion Affects Inequality: Thresholds of Complementary Policies for Sustainable Development By Simplice A. Asongu; Nicholas M. Odhiambo
  6. Robo-Advisors : Investing through Machines By Abraham,Facundo; Schmukler,Sergio L.; Tessada,Jose

  1. By: Ngasuko, Tri Achya
    Abstract: A high level of population inequality usually accompanies the high poverty rate. Indonesia has various ways to solve this problem. The government is always trying to continuously and simultaneously prepare and implement programs to solve these problems. The Indonesian Conditional Cash Transfer Programme (Program Keluarga Harapan/ PKH) recipients increase to 10 million recipients in 2018. However, this program will not always be given to the recipients. Households that receive this program are expected to increase their welfare in the six years since receiving PKH funds. Logically, if a family has finished and graduated from the PKH program, it means that PKH recipients are relatively more prosperous compared to the previous situation. With more prosperity, they may have the potential to have an income that will ultimately have the ability to save, for example, in some formal financial institutions, banks. By using Susenas 2017 data, this paper will try to fill the knowledge gap about the extent of the contribution of PKH families who have graduated to increase financial inclusion. This study uses secondary data from Susenas in 2017 produced by BPS. The results of the study show that PKH program recipients based on 2017 Susenas data are 4.1 million. Of these, it turns out there are 327,437 households that ultimately do not get any more PKH program funding, or they have graduated. Basically, there are no specific targets for channeling PKH funds that will contribute specifically to increasing financial inclusion. However, data from Susenas on PKH graduation families can access formal financial institutions in the form of savings in banks even though in a limited amount. Of the 327,427 households that have graduated from the PKH program, only about 29% or around 94 thousand families have and access formal financial services. In the end, compared to the total number of families in Indonesia of 69.3 million families, the contribution of PKH graduation families to financial inclusion is only about 0.13%.
    Keywords: Financial Inclusion, Conditional Cash Transfer, Indonesia, PKH, Susenas 2017
    JEL: D14 G21 G28
    Date: 2018–07–01
  2. By: Ngasuko, Tri Achya
    Abstract: The government tries to increase financial inclusion by channeling various social assistance in non-cash, namely through bank accounts, but the results are still not encouraging. Penetration through the supply side, which is also an alternative, is to introduce the mechanism of banking products via the internet, or internet banking. Internet banking is believed to contribute more in increasing financial inclusion in Indonesia. Several studies with the case of Indonesia try to see the effect of demographic factors on a person's desire to use internet banking. However, it is still on a small sample scale. Using 2018 Susenas data, this paper will try to fill the knowledge gap about the extent of the use of internet banking by the Indonesian people on a broader scale, namely at the national level. Also, this paper tries to identify the demographics of internet banking users in Indonesia. This study uses secondary data from 2018 Susenas released by the Central Statistics Agency (BPS). The results of the study revealed that internet banking users by the adult community were still around 23.41%. Furthermore, using the logit model method, this study answers that demographic characteristics such as age, level of education, male gender, occupational status, and location of individuals in urban areas influence positively and significantly on individual decisions to use internet banking.
    Keywords: Financial Inclusion, Internet banking, Susenas 2018
    JEL: D14 G21 G28
    Date: 2019–12–01
  3. By: Charles Yuji Horioka (Research Institute for Economics and Business Administration, Kobe University, Osaka University, Asian Growth Research Institute, and National Bureau of Economic Research); Yoko Niimi (Faculty of Policy Studies, Doshisha University, and Asian Growth Research Institute, Japan)
    Abstract: This paper shows, using data from the Family Income and Expenditure Survey, that housing credit has become increasingly available over time in Japan, especially since 2000, and that this has made it easier for Japanese households to purchase housing and enabled them to do so at an earlier age. However, it also shows that the greater availability of housing credit has increased households' housing loan repayment burden, which has resulted in their cutting back on their other consumption expenditures and created the potential for retirement insecurity. Another concern is that the increasing availability of housing credit has been accompanied by a pronounced shift from fixed-rate to variablerate housing loans. This is cause for concern given the low level of financial literacy that prevails among the Japanese population and the likelihood that interest rates on variablerate housing loans will be raised sooner or later as monetary policy is tightened.
    Keywords: Homeownership; Housing credit; Housing loans; Mortgages; Household debt; Household liabilities
    JEL: D14 E21 R21
    Date: 2020–01
  4. By: Imène Berguiga (ERUDITE research team, IHEC, University of Sousse, Tunisia); Philippe Adair (ERUDITE research team, University Paris Est Créteil, France)
    Abstract: A pooled sample of 3,075 Micro, Small, and Medium-sized Enterprises (MSMEs) is designed as for Egypt, Morocco and Tunisia from the World Bank Enterprises Survey (WBES) as of 2013. The adjusted sample complies with international standards, although it does not remove all the biases encapsulated within the WBES. A subsample of 709 MSMEs applied for a loan on the demand side, including those that were granted a loan on the supply side and those that were rejected by financial institutions. The absence of Financial inclusion and lack of Collateral are the main reasons for this imbalance. A binary logit model including interaction variables addresses both the demand and the supply side. Salient findings on the demand side are that the characteristics of MSMEs -Size, Age, Registration and Financial inclusion influence loan demand, whereas the characteristics of managers and the Interest rate have no impact. Conversely, the characteristics of MSMEs play no role upon loan supply, whereas Financial inclusion and Collateral exert a major impact on the supply side. There is a mismatch as for loan supply from microfinance according to the microfinance industry vs. the WBES data source.
    Date: 2019–09–20
  5. By: Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: This study investigates how enhancing gender inclusion affects inequality in 42 African countries for the period 2004-2014. The empirical evidence is based on the Generalized Method of Moments. Three inequality indicators are used, namely, the: Gini coefficient, Atkinson index, and Palma ratio. The two gender inclusion measurements used include female labour force participation and female employment. The following main findings are established. There are positive net effects on inequality from the enhancement of gender inclusion dynamics. An extended threshold analysis is used to assess critical masses at which further increasing gender inclusion enhances inequality. The established thresholds are: (i) 55.555 “employment to population ratio, 15+, female (%)†for the nexus with the Gini coefficient. (ii) 50 “labor force participation rate, female (% of female population ages 15+)†and between 50 to 55 “employment to population ratio, 15+, female (%)†, for the Atkinson index. (iii) 61.87 “labor force participation rate, female (% of female population ages 15+)†for the Palma ratio.These established thresholds are worthwhile for sustainable development because, beyond the critical masses, policy makers should complement the gender inclusion policy with other measures designed to reduce income inequality. Some complementary measures that can be taken on board beyond the established thresholds could focus on enhancing, inter alia: information and communication technology, infrastructural development; financial inclusion and inclusive education.
    Keywords: Africa; Gender; Inclusive development; Sustainable development
    JEL: G20 I10 I32 O40 O55
    Date: 2019–01
  6. By: Abraham,Facundo; Schmukler,Sergio L.; Tessada,Jose
    Abstract: Investing through online automated platforms, known as robo-advisors, is increasingly popular. Robo-advisors expand access to wealth management services by making it easier and less costly to open investments accounts and receive financial advice, as well as plan and automate investment decisions. However, the rise of robo-advisors requires consumers to understand the limitations of these services and to get proper financial education. Policy makers need to grapple with the impact of robo-advisors on the overall financial system, as well as reassess their regulatory and supervisory practices.
    Keywords: Pensions&Retirement Systems,Educational Sciences,International Trade and Trade Rules,Educational Policy and Planning - Ministry of Education,Educational Institutions&Facilities,Educational Policy and Planning - Institutional Development,Educational Policy and Planning
    Date: 2019–02–26

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