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on Financial Literacy and Education |
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Issue of 2025–04–28
six papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Yoga Affandi (Bank Indonesia); MHA Ridhwan (Bank Indonesia); Cahya Mega Panji Santosa (Bank Indonesia) |
| Abstract: | This study examines the factors driving digital adoption among ultra-micro, micro, and small enterprises (UMSEs) in Indonesia, using data from a survey of 10, 142 UMSEs across 34 provinces. A comprehensive Digital Adoption Index was developed to assess adoption levels and their regional variations, focusing on key business processes, including e-procurement, POS systems, e-marketing, e-commerce, and digital payments. Results indicate that digital adoption is significantly influenced by owner demographics, firm characteristics, business environment, infrastructure quality, and cultural factors, contributing to disparities in adoption across regions. The findings suggest that digital adoption positively impacts UMSEs’ business performance, business innovation, financial literacy and financial inclusion, highlighting the potential for digital tools to enhance financial knowledge and access within this sector. This research provides actionable insights for policy development aimed at supporting digital transformation among UMSEs, particularly in areas with low adoption levels. |
| Keywords: | Digital Adoption, Ultra-Micro, Micro and Small Enterprises, Business Performance, Business Innovation, Financial Literacy, Financial Inclusion |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp122024 |
| By: | Shreemoyee, Shreemoyee; Roychowdhury, Punarjit; Dhamija, Gaurav |
| Abstract: | We empirically examine the causal impact of women's financial inclusion on their exposure to Intimate Partner Violence (IPV) in India using data from the fifth round of the National Family Health Survey. However, establishing a causal link between women's financial inclusion and IPV is challenging due to unobserved confounders and reverse causality. To overcome these obstacles, we adopt a nonparametric bounds approach. We find robust evidence that women's financial inclusion significantly increases their exposure to IPV by at least 7.8 percentage points. We provide suggestive evidence that this result arises because women's financial inclusion is likely to disrupt patriarchal beliefs about gender roles, lead to female guilt, and increase husbands' use of IPV for instrumental reasons. Our findings suggest that empowering women financially, while crucial, may inadvertently increase their vulnerability to IPV unless such initiatives are paired with efforts to shift underlying cultural norms surrounding gender. |
| Keywords: | Intimate Partner Violence, Financial Inclusion, Partial Identification, India |
| JEL: | J12 J16 O12 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1599 |
| By: | Cziriak, Marius; Bucher-Koenen, Tabea; Alessie, Rob |
| Abstract: | Women are less likely to correctly answer the "Big-3" financial literacy questions, and a substantial share of the gap reflects women's lower confidence. In our experiment, women are more likely to choose "do not know" or refuse to answer financial literacy questions. If these options are not available, the gender gap decreases substantially. We build on the method proposed by Bucher-Koenen et al. (2021) and provide an easy-to-implement survey design applicable in cross-sectional studies that allows us to disentangle financial knowledge and confidence. We find that both financial knowledge and confidence are related to participation in the stock market. |
| Keywords: | financial knowledge, gender gap, financial decision making, measurement error, survey methodology |
| JEL: | G53 C81 D14 D91 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:312571 |
| By: | Giuseppe Bertola; Anna Lo Prete |
| Abstract: | A propensity to guess randomly rather than to admit ignorance answering “Don’t know” is a plausible reason why frequent wrong answers are given to survey questions that aim to assess competence. We model this source of measurement error and assess its empirical relevance in two consecutive waves of a survey of financial literacy. Misclassification of standard financial literacy indicators is very likely, especially in some demographic groups. Respondents who answer correctly in both waves of the survey are less likely to have guessed in the first wave, and have a lower probability of reporting financial difficulties than those who guessed and were lucky enough to appear literate. |
| Keywords: | misclassification, guessing, financial literacy, financial resilience |
| JEL: | D14 D83 G51 G53 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11748 |
| By: | Shujaat Khan; Bo Li; Mr. Yunhui Zhao |
| Abstract: | We highlight the strong connection between developing fully-funded, individually-owned, collectively-managed, mandatory/incentivized (FICMI) pension schemes and the development of domestic stock markets. We do so by building a stylized model and complementing the analysis with cross-country empirical analysis and case studies. We also highlight the challenges of individual impatience, network externalities, and coordination failure in long-term equity investments, which are crucial for stock market development and technological innovation. We find that FICMI pension schemes—when sufficiently wide in coverage and large in size—can serve as coordination devices to support long-term equity investments. Such investments will not only promote domestic stock market development and make it easier for firms to raise long-term equity capital, therefore supporting long-term economic growth, but also enhance financial inclusion and enable more households to benefit from the overall economic development, therefore contributing to inclusive growth. Moreover, we find that the introduction of FICMI pension schemes can impact household savings in two ways: first, FICMI pension can increase household savings through “forced/incentivized” savings channel, where households save too little without FICMI pension (such as in many EMDEs); and second, FICMI pension can decrease household savings and increase household consumption by reducing non-pension savings and decreasing precautionary savings, where households save too much without FICMI pension (such as in China). In both cases, FICMI pension schemes can help move the economy closer to the optimal level of household savings, and may also help improve the structure of such savings. Finally, we discuss the enabling conditions (such as a strong political commitment to the reform and a well-designed fiscal strategy for financing the transition) and policy design for FICMI pension schemes. |
| Keywords: | Pension Reforms; Stock Market Development; Equity Financing; Innovation' Financial Inclusion; Intertemporal Optimization; Public Pensions; Funded and Private Pensions |
| Date: | 2025–02–28 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/049 |
| By: | Mohammad Noorizzuddin Nooh (Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Malaysia Author-2-Name: Fatin Nabilah Nazri Author-2-Workplace-Name: Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Malaysia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | "Objective - The primary objective of the paper is to examine the impact of the CARTER model dimensions (Compliance, Assurance, Reliability, Tangibility, Empathy, and Responsiveness) on university students' satisfaction with Islamic banks. The study aims to identify the dimensions that are most influential in enhancing service quality within this specific demographic. Methodology/Technique - The research employs a quantitative approach, utilizing primary data collected through a survey of 150 respondents aged 18 to 27 from Universiti Sains Islam Malaysia. The study employs various statistical analyses using SPSS, including descriptive analysis, factor analysis, reliability analysis, and multiple regression analysis, to assess the relationships between CARTER dimensions and customer satisfaction. Findings - The findings reveal that empathy and assurance are the most significant factors influencing customer satisfaction among university students in relation to Islamic banks. Conversely, compliance, reliability, tangibility, and responsiveness were found to have an insignificant relationship with customer satisfaction. The study suggests that Islamic banks should prioritize effective communication and personalized services to enhance the banking experience for students. Additionally, it highlights the importance of integrating financial literacy programs within universities to better equip students in their interactions with banking services. Novelty - The novelty of the research lies in its application of the CARTER model specifically to Islamic banking, with a focus on university students as a significant and underexplored demographic. By collecting empirical data from 150 respondents at Universiti Sains Islam Malaysia, the study offers unique insights into which dimensions of service quality, specifically empathy and assurance, most significantly influence student satisfaction. Additionally, it provides practical recommendations for Islamic banks to enhance their service delivery and highlights the role of universities in promoting financial literacy, thereby contributing to the broader discussion on improving customer relationships in the financial sector. Type of Paper - Empirical" |
| Keywords: | Service Quality; Customer Satisfaction; CARTER Model; Islamic Banking; University Students. |
| JEL: | M30 M31 |
| Date: | 2025–03–31 |
| URL: | https://d.repec.org/n?u=RePEc:gtr:gatrjs:jmmr346 |