nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2024‒08‒12
three papers chosen by
  1. Financial inclusion transitions in Peru: does labor informality play a role? By Jose Aurazo; Farid Gasmi
  2. Impacts of Financial Literacy Training on Refugee Youth Outcomes By Das, Nandini; Gupta, Anubhab; Mingo, Cristobal; Zhu, Heng
  3. On the evolution over time of Financial Inclusion: A new multivariate index for Mexican municipalities By María del Carmen Dircio Palacios Macedo; Paula Cruz-García; Fausto Hernández-Trillo; Emili Tortosa-Ausina
  1. By: Jose Aurazo; Farid Gasmi
    Abstract: Low financial inclusion and high labor informality are two major challenges in developing countries. Using Peruvian survey data from 2015-18, we explore the dynamic relationship between these two variables by examining how labor informality and movements between formal and informal jobs may affect the transition probabilities of financial inclusion. First, we find that becoming informally employed reduces the probability of entering the formal financial system by 8 percentage points (pp) and increases the likelihood of exiting from it by 9.3 pp. Relative to persistently informal workers, those who stay in formal jobs have a 9 pp higher probability of gaining access to bank accounts, and 12 pp lower probability of losing access. Workers who move into formal jobs are more likely to enter the formal financial system by 9.7 pp and less likely to exit from it by 7.1 pp. These results underscore the complementarity of formalizing the informal sector and expanding access to financial services.
    Keywords: financial inclusion, labor informality, transition probabilities, dynamic random-effect panel probit
    JEL: C23 D14 E26 I31 O17
    Date: 2024–07
    URL: https://d.repec.org/n?u=RePEc:bis:biswps:1200
  2. By: Das, Nandini; Gupta, Anubhab; Mingo, Cristobal; Zhu, Heng
    Keywords: International Development
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:ags:aaea22:343901
  3. By: María del Carmen Dircio Palacios Macedo (Department of Economics, Universitat Jaume I, Castellón, Spain); Paula Cruz-García (Department of Economic Analysis, Universitat de Valencia, Spain); Fausto Hernández-Trillo (Center for Research and Teaching in Economics (CIDE), Mexico); Emili Tortosa-Ausina (IVIE, Valencia and IIDL and Department of Economics, Universitat Jaume I, Castellón, Spain)
    Abstract: Access to financial services is unequal around the world. In many countries, les than half of the population has an account at a financial institution, and this lack of access to finance is often a critical reason behind income inequality and uneven growth. This is the case of Mexico, where financial exclusion affects large shares of the population mainly in rural and poorer localities. This is an ongoing concern for policymakers, since it undermines socioeconomic opportunities for families and businesses alike, hampering economic growth and development. However, assessing the relevance of this issue requires a careful measurement of financial inclusion which, to date, has only been achieved to a limited extent. We contribute to the literature in this context by proposing a multivariate index of financial inclusion for Mexico, at the municipal level, for the period 2013–2021. This index covers several dimensions, including access, and usage. The results corroborate that a large proportion of the population is still unbanked, although it is unevenly distributed across the country.
    Keywords: composite indicator, financial inclusion, Mexican municipalities, Mexico
    JEL: G21 G23 G30 O16 R51
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:jau:wpaper:2024/06
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