nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2025–06–09
five papers chosen by
Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca


  1. Beyond inclusion: building people’s financial resilience By Ashwin Kwatra; Lin Zhuo
  2. Bridging Sustainability and Inclusion: Financial Access in the Environmental, Social, and Governance Landscape By Drago, Carlo; Costantiello, Alberto; Arnone, Massimo; Leogrande, Angelo
  3. Does Education Improve Financial Outcomes? Evidence from Stock Market and Retirement Accounts in Türkiye By Aydemir, Abdurrahman B.; Ersan, Yasar
  4. Macro-Financial Policies and Vulnerabilities in IMF-Supported Programs By Yazan Al-Karablieh; José Marzluf; Hector Perez-Saiz; Azzam Santosa; Mr. Fabian Valencia
  5. (Digital) cash transfers, privacy and women's empowerment: Evidence from Uganda By Giulia Greco; Selim Gulesci; Pallavi Prabhakar; Munshi Sulaiman

  1. By: Ashwin Kwatra (Intern, Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Lin Zhuo (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific)
    Abstract: This policy brief underscores the imperative of broadening the focus beyond mere financial inclusion to embracing a more comprehensive approach that enhances people’s financial resilience. At the heart of this transition lies the recognition of the interconnectedness between financial inclusion and resilience. Policymakers must integrate resilience-building objectives into existing financial inclusion frameworks, fostering an enabling environment that incentivizes the provision of products and services designed to enhance resilience. Empowering individuals and communities through financial education and literacy initiatives is central to building financial resilience. Equipping individuals with the knowledge and skills to manage financial risks effectively enhances their preparedness to navigate unexpected challenges and mitigate their impact. Additionally, promoting the adoption of digital financial technologies can improve accessibility and affordability, particularly for marginalized populations, further enhancing societal resilience in the face of shocks. Consumer protection and robust monitoring and evaluation mechanisms are integral to building financial resilience. Ensuring the integrity and fairness of financial products and services through effective consumer protection frameworks safeguards individuals from exploitation and promotes trust in the financial system. Moreover, rigorous monitoring and evaluation mechanisms are essential for assessing the effectiveness of resilience-building interventions and identifying areas for improvement.
    Date: 2024–07
    URL: https://d.repec.org/n?u=RePEc:unt:pbmpdd:pb128
  2. By: Drago, Carlo; Costantiello, Alberto; Arnone, Massimo; Leogrande, Angelo
    Abstract: This paper explores the correlation between financial inclusion and the Environment, Social, and Governance (ESG) aspects of sustainable development for a big panel of 103 developing nations over 12 years. Financial inclusion as a measure is taken through the Account Age variable capturing adults having access to formal financial institutions as a percentage. The analysis revolves around the three main ESG pillars each through panel data regressions complemented by instrumental variable (IV) approaches in addressing endogeneity concerns. In the Environment (E) dimension, we find conventional agricultural forms (e.g., extensive agricultural land areas and agriculture value added) as having a negative effect on financial inclusion, but the environmental modernization proxies—renewable energy utilization, food production, climate resilience, and areas under protection—exhibit positive and significant correlations. In the Social (S) dimension, development indicator variables like spending on education, internet penetration, life years at birth, sanitation, and gender equity emerge as strong predictors of higher financial inclusion, and labor market participation is found to have a negative effect, possibly due to the dynamics of employment in the informal sector. The Governance (G) analysis shows positive correlation with controlling corruption and innovation production (applications for patents) as arguments for increased financial access improving institutional transparency and economic ingenuity and a negative correlation with regulatory quality as a concern for capacity gaps in rapidly digitizing economies. Through the means of ESG-matched environmental instruments, this paper presents a unique cross-dimensional approach to sustainable finance and shows through counterfactual analysis under both average and counterfactual distributions that policies supporting financial inclusion can be a path to multiple benefits on the environmental sustainability, social equity, and governance effectiveness axes—key requirements for the success of the Sustainable Development Goals (SDGs) in the Global South.
    Keywords: Financial Inclusion, ESG Framework, Developing Countries, Instrumental Variables, Sustainable Development.
    JEL: C33 G21 H55 I38 O16 O44 Q56
    Date: 2025–05–23
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:124827
  3. By: Aydemir, Abdurrahman B. (Sabanci University); Ersan, Yasar (Ankara University)
    Abstract: We examine the causal effect of education on financial outcomes related to stock markets and retirement savings, leveraging a major compulsory school reform and a unique data set covering the universe of investors in Türkiye. The estimates show no effects on participation rates, portfolio composition, or return performance. Moreover, education does not appear to influence behavioral biases or heuristics in retirement plans. The reform leads to a 3% increase in pension savings for females, with no significant effect on males. Higher earnings and increased employment with employer-sponsored pension plans appear as potential mechanisms driving the wealth effect.
    Keywords: Wealth, Retirement, Education, Investment Decisions
    JEL: I21 I26 G11 G41 G50 G53 J32
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17927
  4. By: Yazan Al-Karablieh; José Marzluf; Hector Perez-Saiz; Azzam Santosa; Mr. Fabian Valencia
    Abstract: We construct a unique dataset by collecting macro-financial commitments data using textual analysis of the Memorandum of Economic and Financial Policies (MEFPs), a document outlining, inter-alia, policy commitments by member countries, in the context of an IMF-supported program. We combine this data with information on structural conditionality. Using a staggered difference-in-differences methodology, we show that IMF-supported programs with macro-financial policy commitments are followed by periods of lower non-performing loans and in some cases lower credit-to-GDP ratios, relative to IMF-supported programs without macro-financial commitments, mostly for the post global financial crisis (GFC) period before the COVID-19 pandemic. The NPL-to-loans ratio does not seem to decrease as a result of credit expansion. The results point to stronger and more abrupt declines in credit-to-GDP following ex-post macro-financial policies, those implemented after a crisis occurs (e.g., restructuring), and milder and more gradual declines following ex-ante policies, those implemented before risks materialize (e.g., regulatory requirements). The responses are also larger when countries have positive credit gaps at the start of the program than when credit gaps are negative. These results point to the importance of considering the country’s position in the credit cycle in program design and in addressing vulnerabilities preemptively to reduce the need for abrupt corrections when risks materialize. Finally, macro-financial policies targeting financial inclusion tend to increase credit-to-GDP ratios in low credit-to-GDP program countries.
    Keywords: Textual analysis; non-performing loans; credit growth; IMF-supported programs; macro-financial policies
    Date: 2025–05–23
    URL: https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/097
  5. By: Giulia Greco (London School of Hygiene and Tropical Medicine); Selim Gulesci (Department of Economics, Trinity College Dublin); Pallavi Prabhakar (BRAC Institute of Governance and Development); Munshi Sulaiman (BRAC Institute of Governance and Development)
    Abstract: We present evidence from a randomized controlled trial in Uganda where married women were randomly provided unconditional cash transfers. Among treated women, we randomized the modality of payment (in cash or mobile money) and whether the beneficiary's spouse was informed about the transfer or not. We find that using mobile money for cash transfers is more effective in improving women’s economic independence and decision-making power. In particular, women in the mobile money treatments have higher individual labor income and more of a say in household decisions. On the other hand, cash-based transfers are more effective in reducing intimate partner violence (IPV), especially when both partners are informed. This highlights a trade-off between improving the effectiveness of cash transfers on women’s economic empowerment versus reducing IPV. While providing cash transfers digitally is more effective in improving women's control over resources, this may lower their effectiveness in addressing IPV.
    Keywords: Digital finance, cash transfers, women's empowerment, domestic violence, privacy
    JEL: C93 D10 D82 J12
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:tcd:tcduee:tep0425

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