nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2022‒11‒28
seven papers chosen by

  1. Does Cooperation among Institutions Foster Migrants Inclusion? Evidence from a Case-Study on Financial Literacy in Italy By Samuel Nocito; Alessandra Venturini
  2. Fintechs and the financial inclusion gender gap in Sub-Saharan African countries By Aurelien K. Yeyouomo; Simplice A. Asongu
  3. Disparities in financial literacy, pension planning, and saving behavior By Bucher-Koenen, Tabea; Hackethal, Andreas; Kasinger, Johannes; Laudenbach, Christine
  4. Financial Inclusion and Economic Growth in West Africa: The Moderating Effect of Financial Openness By Yakubu, Ibrahim Nandom; Bunyaminu, Alhassan
  5. Which Financial Inclusion Indicators and Dimensions Matter for Income Inequality? A Bayesian Model Averaging Approach By Rogelio Mercado Jr.; Victor Pontines
  6. Gender Inclusion and Sustainable Development in Africa By Vanessa S. Tchamyou; Ofeh M. Edoh
  7. Partisan Bias in Inflation Beliefs: New Evidence from Korea. By Sangyup Choi; Sang-Hyun Kim; Myunghwan Andrew Lee; Siye Bae; Myungkyu Shim

  1. By: Samuel Nocito (Department of Social Sciences and Economics, Sapienza University of Rome); Alessandra Venturini (Department of Economics and Statistics “Cognetti de Martiis”, University of Turin)
    Abstract: We investigate an Italian case study (project “Welcome-ED”) of cooperation between private institutions and local migrant centers - administratively defined as cooperatives, non-profit associations, and public educational centers - to promote the inclusion of migrants through the provision of a financial literacy course. We find that the course has effectively improved migrants’ financial literacy and it also mitigates initial differences in knowledge due to individual characteristics. Moreover, we find heterogeneous effects among different local center types with stronger improving effects for individuals coming from cooperatives and non-profit associations. This result strengthens the importance of the cooperation between private institutions, cooperatives, and local associations to achieve inclusion policy goals.
    Keywords: D14, L30, J15, P13.
    JEL: Q12 O12 C31 C3
    Date: 2022–11
  2. By: Aurelien K. Yeyouomo (University of Yaoundé 2, SOA, P.O. Box 1365); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: This study addresses the issue of financial innovation in developing countries, focusing specifically on the role fintechs have in closing the gender gap of financial inclusion in Sub-Saharan Africa (SSA) over the period 2011-2017. The empirical evidence is based on the multilevel tobit regression model fitted to panel data. The results of this study show that fintechs reduce the financial inclusion gender gap by mitigating the gender gap in access to and use of financial services. Furthermore, they cast doubt on the ability of fintechs development to bridge this gap on its own, and hint on the joint importance of targeted policy initiatives aimed at directly closing the gender gap to this end. These findings have important economic policy implications and provide evidence of improved economic conditions for women in terms of financial inclusion leading to a narrowing of the gender gap.
    Keywords: Fintechs development, financial inclusion gender gap, Tobit, SSA
    Date: 2022–10
  3. By: Bucher-Koenen, Tabea; Hackethal, Andreas; Kasinger, Johannes; Laudenbach, Christine
    Abstract: Financial literacy affects wealth accumulation, and pension planning plays a key role in this relationship. In a large field experiment, we employ a digital pension aggregation tool to confront a treatment group with a simplified overview of their current pension claims across all pillars of the pension system. We combine survey and administrative bank data to measure the effects on actual saving behavior. Access to the tool decreases pension uncertainty for treated individuals. Average savings increase|especially for the financially less literate. We conclude that simplification of pension information can potentially reduce disparities in pension planning and savings behavior.
    Keywords: saving behavior,retirement planning,digital planning tool
    JEL: D14 G11 G51 G53
    Date: 2022
  4. By: Yakubu, Ibrahim Nandom; Bunyaminu, Alhassan
    Abstract: This paper examines the impact of financial inclusion on economic growth in the Economic Community of West African States (ECOWAS) countries. The study also investigates how financial inclusion through financial openness enhances growth. Applying the pooled estimated generalized least squares (EGLS) technique with data from 10 countries in ECOWAS over the period 2010-2017, the results reveal that financial inclusion exerts a positive significant influence on economic growth through its direct effect and via financial openness. The findings also show that while inflation reduces growth, trade openness and foreign direct investment significantly stimulate economic growth in ECOWAS. The study emphasizes the need for greater efforts to address the challenges involved in accessing financial services as one of the most effective ways of realizing inclusive growth.
    Keywords: Financial inclusion, Economic growth, Pooled EGLS, ECOWAS
    JEL: G21 O40 O43
    Date: 2021–02–01
  5. By: Rogelio Mercado Jr.; Victor Pontines
    Abstract: This paper employs Bayesian model averaging (BMA) and uses posterior inclusion probability (PIP) values to evaluate which financial inclusion indicators, dimensions, and other determinants of income inequality should be considered in an empirical specification assessing the relationship between financial inclusion and income inequality, given model uncertainty. The results show that for the low-income country group, financial access and usage indicators and dimensions are the most relevant indicators. Unfortunately, nowhere in our baseline results and in almost all our sensitivity tests do we find PIP values higher than our set threshold value for any of our financial depth indicators and dimension. These results suggest that theoretical models linking financial inclusion and income inequality could well focus on the role of financial access and usage by providing theoretical foundations on the mechanics as to how these two dimensions of financial inclusion impact income inequality.
    Keywords: Bayesian model averaging, financial inclusion, income inequality, Bayesian inference
    JEL: C11 C52 O15 O16
    Date: 2022–10
  6. By: Vanessa S. Tchamyou (Yaounde, Cameroon); Ofeh M. Edoh (Yaoundé, Cameroon)
    Abstract: This study investigates how ameliorating gender inclusion affects sustainable development in Africa over the period 2000-2019 in 42 African countries. It argues that enhancing gender inclusion in all sectors of society promotes and sets a better pace for the attainment of sustainable development in Africa. The gender inclusion variable used is the females employed as a ratio of the working-age. The study employs the Generalized Method of Moments as the main analysis method alongside the Ordinary Least Squares method. It is expected that gender inclusion substantially affects sustainable development in Africa and subsequently, adequate measures should be taken into consideration to boost gender inclusion such as promoting financial inclusion, engaging inclusive education, and engaging inclusive participation in decision making processes at the level of policy making.
    Keywords: Gender inclusion; sustainable development; Africa
    JEL: J16 Q01
    Date: 2022–01
  7. By: Sangyup Choi (Yonsei University); Sang-Hyun Kim (Yonsei University); Myunghwan Andrew Lee (New York University); Siye Bae (Yonsei University); Myungkyu Shim (Yonsei University)
    Abstract: Does partisanship affect household inflation beliefs? This paper answers this question using new online survey data of South Korea, which was run between the presidential election in March 2022 and the presidential inauguration in May 2022, during which participants experienced a regime change. We find that (1) partisan bias affects both inflation expectations and perceived inflation in the past year but (2) self-reported financial literacy mitigates the bias.
    Keywords: Inflation expectations, partisan bias, household survey, Blinder-Oaxaca decomposition.
    JEL: E32 I31
    Date: 2022–11

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