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on Financial Literacy and Education |
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Issue of 2024‒01‒22
four papers chosen by |
| By: | Novat Pugo Sambodo (Lecturer of Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada); Riswanti Budi Sekaringsih (Lecturer of Faculty of Islamic Economics and Business, State Islamic University (UIN) Sunan Kalijaga Yogyakarta, and Research Associate at Pusat Kajian Ekonomika dan Bisnis Syariah (PKEBS/Center for Islamic Economics and Business Studies) of Faculty of Economics and Business, Universitas Gadjah Mada); Meikha Azzani (Research Associate at Pusat Kajian Ekonomika dan Bisnis Syariah (PKEBS/Center for Islamic Economics and Business Studies) of Faculty of Economics and Business, Universitas Gadjah Mada); Esa Azali Asyahid (Academic Assistant of Department of Economics and General Assistant at Pusat Kajian Ekonomika dan Bisnis Syariah (PKEBS/Center for Islamic Economics and Business Studies) of Faculty of Economics and Business, Universitas Gadjah Mada); Maulana Ryan Nurfahdhila (Student of Department of Economics and Research Assistant at Pusat Kajian Ekonomika dan Bisnis Syariah (PKEBS/Center for Islamic Economics and Business Studies) of Faculty of Economics and Business, Universitas Gadjah Mada) |
| Abstract: | This study empirically examines the determinants of financial inclusion among Indonesian Muslims using individual-level panel data. We investigated financial inclusion indicators such as borrowing from financial institutions, bank account ownership, the borrowed amount, and savings in financial services. We analysed data from the Indonesian Family Life Survey (IFLS) fourth (2007) and fifth (2014) waves, offering a comprehensive dataset with unique socio-economic variables. We used Ordinary Least Squares and Logit estimations to identify factors influencing individuals' access to financial services and the average borrowed amount. Our findings indicate that urban residents with higher wealth, predominantly males, have better access to financial services. Banks remain the primary source for loans among Indonesian Muslims. Access to commercial banks significantly impacts loan accessibility. Notably, Baitul Maal WatTamwil (BMT), an Islamic microfinance institution, enhances the probability of Indonesian Muslims accessing formal loans. |
| Keywords: | Financial Inclusion, Islamic Finance, Household, Muslim, Indonesia |
| JEL: | G51 Z12 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:gme:wpaper:202312013&r=fle |
| By: | Khalid Lahrour (UH2C - Université Hassan II de Casablanca (UH2C)); Latifa Horr (UH2C - Université Hassan II de Casablanca (UH2C)) |
| Abstract: | The concept of inclusion is related to the means of integrating individuals and social groups into social, economic and cultural life by enabling them to participate fully. Economic thought for centuries has considered human well-being as what gives meaning to economic activity. The utilitarian moral theory of Bentham and John Stuart Mills asserts that the purpose of economic activity is to improve the quality of life for the maximum number of people. The inclusive approach includes different aspects, such as social, cultural, economic and financial inclusion. The objective of this paper is to explore the concept of financial inclusion as a form of improving individual well-being and integration into the economic and social activity of a country. To achieve this objective, the paper uses a theoretical approach that draws on the review of available literature on financial inclusion and the different theoretical approaches and perspectives associated with it from prior research and studies to support the arguments presented and to show the importance of financial inclusion in ensuring a more inclusive society. |
| Abstract: | Le concept d'inclusion est lié aux moyens d'intégrer les personnes et les groupes sociaux dans la vie sociale, économique et culturelle en leur permettant d'y participer pleinement. La pensée économique depuis des siècles considère que le bien-être humain est ce qui donne de la signification à l'activité économique. La théorie morale utilitariste de Bentham et John Stuart Mills affirme que l'objectif de l'activité économique est d'améliorer la qualité de vie pour un maximum de personnes. L'approche inclusive couvre divers aspects, tels que l'inclusion sociale, culturelle, économique et financière. Pour atteindre ces objectifs, il est crucial de tenir compte des besoins des individus et des groupes vulnérables et de développer des politiques publiques pour les satisfaire. L'objectif de cet article est d'explorer le concept d'inclusion financière en tant que forme d'amélioration du bien-être individuel et d'intégration dans l'activité économique et sociale d'un pays. Pour atteindre cet objectif, l'article utilise une approche théorique qui se base sur la revue de la littérature disponible sur l'inclusion financière et les différentes approches et perspectives théoriques qui y sont associées des recherches et des études préalables pour étayer les arguments présentés et pour montrer l'importance de l'inclusion financière pour garantir une société plus inclusive. |
| Keywords: | Inclusion, Financial inclusion, Financial exclusion, growth, well-being, Inclusion financière, Exclusion financière, croissance, bien-être |
| Date: | 2023–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04346087&r=fle |
| By: | David Hason Rudd; Huan Huo; Guandong Xu |
| Abstract: | Financial literacy (FL) represents a person's ability to turn assets into income, and understanding digital currencies has been added to the modern definition. FL can be predicted by exploiting unlabelled recorded data in financial networks via semi-supervised learning (SSL). Measuring and predicting FL has not been widely studied, resulting in limited understanding of customer financial engagement consequences. Previous studies have shown that low FL increases the risk of social harm. Therefore, it is important to accurately estimate FL to allocate specific intervention programs to less financially literate groups. This will not only increase company profitability, but will also reduce government spending. Some studies considered predicting FL in classification tasks, whereas others developed FL definitions and impacts. The current paper investigated mechanisms to learn customer FL level from their financial data using sampling by synthetic minority over-sampling techniques for regression with Gaussian noise (SMOGN). We propose the SMOGN-COREG model for semi-supervised regression, applying SMOGN to deal with unbalanced datasets and a nonparametric multi-learner co-regression (COREG) algorithm for labeling. We compared the SMOGN-COREG model with six well-known regressors on five datasets to evaluate the proposed models effectiveness on unbalanced and unlabelled financial data. Experimental results confirmed that the proposed method outperformed the comparator models for unbalanced and unlabelled financial data. Therefore, SMOGN-COREG is a step towards using unlabelled data to estimate FL level. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.10984&r=fle |
| By: | Laura Hospido (Banco de España); Nagore Iriberri (Banco de España); Margarita Machelett (Banco de España) |
| Abstract: | Gender gaps in ?nancial literacy are pervasive and persistent. While most studies explore why women know less, these gaps might also re?ect differential behavior in providing responses in surveys. Women might be more likely to be uncertain, or men might be more likely to choose an answer when uncertain, while women might tend to opt for “I do not know”, leading to imprecise measures of the gender gap in ?nancial literacy. We test for the effectiveness of three interventions to reduce the frequency of “I do not know”, in a randomized control trial online survey administered to 6, 000 participants. The standard survey, our control group, includes the possibility of answering “I do not know”. The three treatment arms exclude the “I do not know” answer, offer incentives for correct answers or inform survey takers of the existing gender gap in choosing “I do not know”. All interventions are very effective in reducing the frequency of “I do not know”. The information is most effective for women, while the incentives are most effective for men. As regards gender gaps, only the provision of information significantly reduces the gender gap in choosing “I do not know”, as well as the gender gap in ?nancial literacy. |
| Keywords: | financial literacy, gender gaps, survey methods |
| JEL: | K32 Q5 O13 O44 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2401&r=fle |