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on Financial Literacy and Education |
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Issue of 2022‒06‒20
six papers chosen by |
| By: | Preston, Alison (University of Western Australia); Qiu, Lili (University of Western Australia); Wright, Robert E. (University of Glasgow) |
| Abstract: | This paper uses data from the 2015 China Household Financial Survey to analyse the gender gap in financial literacy in China. The sample consists of 36,311 adult respondents. A variety of financial literacy measures are employed. We show that important predictors of financial literacy include age, education and geographic location and that there are strong cohort effects, with younger respondents significantly more financially literate than older respondents. Males, on average, are more financially literate than females. Blinder-Oaxaca decomposition analysis shows that the gender gap in financial literacy, in part, reflects gender differences in schooling that favours males. There are also large and significant urban-rural differences in financial literacy, with the gender gap markedly higher in rural areas. Overall the gender gap in financial literacy is largely unexplained by gender differences in characteristics. Indeed, were females in China to look like males in China (in terms of age and geographic location) the gender gap in financial literacy would be even wider. Policy responses are discussed in the paper. |
| Keywords: | financial literacy, decomposition, gender-gap, urban-rural gap, China |
| JEL: | G53 I22 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15253&r= |
| By: | Úbeda, Fernando; Mendez, Alvaro; Forcadell, Francisco Javier |
| Abstract: | Lack of access to banking is a major problem that contributes to inequality in the developing world. For this reason, financial inclusion is a crucial objective of the Sustainable Development Goals (SDGs). In this study, we investigate the impact of the sustainable practices of multinational banks (MNBs) on financial inclusion. Drawing from a sample of 24 developing countries and 28,089 individuals, we obtain robust evidence about the positive effect of sustainable practices on financial inclusion. We find that MNBs increase the use of mobile bank accounts in the developing world. We also find that when these MNBs follow sustainable practices, the use of mobile bank accounts positively intensifies. These findings are consequential because mobile banking is one of the most powerful means to achieve financial inclusion in the developing world. |
| Keywords: | sustainable banking; finance inclusion; mobile banking accounts; sustainable development goals |
| JEL: | G00 G20 G21 Q01 Q56 D63 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115063&r= |
| By: | Alessandro Maravalle; Alberto González Pandiella |
| Abstract: | The access to formal financial services in Mexico is particularly low. Access is also significantly unequal across income levels, gender, between rural and urban areas and across regions. SMEs access to bank credit is low, hampering firms’ ability to grow and innovate. The use of cash and informal credit is still widespread, especially in rural areas, where financial infrastructure is underdeveloped. The diffusion of digital financial services is slowly advancing but remains low, hindered by a relatively low level of financial literacy and a digital divide. Expanding access to finance would enable Mexican households to invest in education and health, and better manage income shocks and smooth consumption. It would also enable Mexican firms to invest more, increase productivity and create formal jobs. Low-income households, small firms and more disadvantaged regions would particularly benefit, as it would unlock new economic opportunities for them. Boosting competition in the banking sector would facilitate SMEs access to credit by lowering interest rate margins. Upgrading the regulatory framework of the financial system would help increase competition and quality of financial services. The potential of the fintech sector is yet to be materialised, which would further increase competition and bring financial services to wider segments of the population. Strengthening financial education and digital literacy would facilitate a larger and better use of traditional and digital financial services. |
| Keywords: | competition, credit, digital, financial education, financial inclusion, FinTech, SMEs |
| JEL: | D18 G2 G41 G51 G52 G53 O32 |
| Date: | 2022–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1717-en&r= |
| By: | Simplice A. Asongu; Nicholas M. Odhiambo |
| Abstract: | This study complements the extant literature by assessing how enhancing supply factors of mobile technologies affect mobile money innovations for financial inclusion in developing countries. The mobile money innovation outcome variables are: mobile money accounts, the mobile phone used to send money and the mobile phone used to receive money. The mobile technology supply factors are: unique mobile subscription rate, mobile connectivity performance, mobile connectivity coverage and telecommunications (telecom) sector regulation. The empirical evidence is based on quadratic Tobit regressions and the following findings are established. There are Kuznets or inverted shaped nexuses between three of the four supply factors and mobile money innovations from which thresholds for complementary policies are provided as follows: (i) Unique adults’ mobile subscription rates of 128.500%, 121.500% and 77.750% for mobile money accounts, the mobile used to send money and the mobile used to receive money, respectively; (ii) the average share of the population covered by 2G, 3G and 4G mobile data networks of 61.250% and 51.833% for the mobile used to send money and the mobile used to receive money, respectively; and (iii) a telecom sector regulation index of 0.409, 0.283 and 0.283 for mobile money accounts, the mobile phone used to send money and the mobile phone used to receive money, respectively. Some complementary policies are discussed, because at the attendant thresholds, the engaged supply factors of mobile money technologies become necessary, but not sufficient conditions of mobile money innovations for financial inclusion. |
| URL: | http://d.repec.org/n?u=RePEc:afa:wpaper:aesriwp01&r= |
| By: | Preston, Alison (University of Western Australia); Wright, Robert E. (University of Glasgow) |
| Abstract: | Using micro-data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey this paper examines the relationship between the gender gap in financial literacy and the gender gap in pension savings amongst non-retired adults aged 18-64 in 2018. A simple theoretical model is presented. It implies two empirical specifications: a reduced-form specification where the focus is on pension savings and a more structural specification where the focus is on the "pension return" (the ratio of pension savings to cumulative earnings). Oaxaca-Blinder decomposition analysis suggests that around 8.5 per cent of the gender gap in pension savings may be attributed to the gender gap in financial literacy. This finding holds even in the presence of controls for financial risk tolerance. Policy implications and directions for future research are discussed in the paper. |
| Keywords: | pension savings, superannuation, financial literacy, gender gap, decomposition |
| JEL: | H53 J16 J32 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15250&r= |
| By: | Andersson, Fredrik N G (Lund University); Hjalmarsson, Erik (University of Gothenburg); Österholm, Pär (Örebro University School of Business) |
| Abstract: | Survey data indicate that a relatively large share of households is ill-informed about the rate of inflation in the economy, with perceived and expected rates of inflation deviating sub-stantially from official measures. Using Swedish micro-level data, we find that such inflation illiteracy is related to respondent characteristics, including income, education and sex. |
| Keywords: | Perceived inflation; Inflation expectations; Survey data; Economic literacy |
| JEL: | E31 |
| Date: | 2022–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2022_006&r= |