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on Financial Literacy and Education |
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Issue of 2024‒01‒08
seven papers chosen by |
| By: | Gerth, Florian |
| Abstract: | This paper empirically analyzes the link between financial inclusion (SDG 8.10) and economic activity. Instead of following the past literature and approximating financial inclusion by variables only capturing traditional financial services, it takes into account non-traditional financial services including mobile money and non-branch retail agent outlets. With the help of the Normalized Inverse of the Euclidian Distance and a one-way fixed effects panel model, this pa-per documents empirically robust results about the positive link between financial inclusion and the level economic activity. In addition, a break between poverty and financial inclusion is established by regressing the calculated index of financial inclusion on demographic, socio-economic and variables concerning the health and depth of the financial sector. The implications of this finding are two folds. First, it highlights the improvements of low, lower-middle and upper-middle income countries in terms of outreach to financial services in the last decade. Second, it shows that the level of education and the soundness and depth of the local financial sector are important in reaching higher levels of financial inclusion. Overall, our results emphasize the importance of targeted policies to increase the accessibility, availability and usage of the financial sector in attaining sustainable and long-lasting economic prosperity. |
| Keywords: | financial inclusion; non-traditional financial services; economic development; Financial Access Survey (FAS) |
| JEL: | C23 E13 E44 G20 O16 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119265&r=fle |
| By: | Sanroman Graciela; Quagliotti Romina; Olivieri Cecilia |
| Abstract: | This paper examines the impact of measures implemented in Uruguay to promote financial inclusion. We analyse the changes in terms of access to debit and credit cards and their determinants. We also employ Diff in Diff strategies to assess the effect of a particular measure: the mandatory payment of salaries through bank accounts. We find evidence that financial inclusion has improved during the period analysed, through the expansion of debit cards. We document that the impact was strongest among low-income households and those headed by women or Afro-descendants. We also show that the expansion was greater than that observed in other similar countries. However, we find almost no change in access to credit cards. |
| JEL: | G21 G50 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4690&r=fle |
| By: | Hospido, Laura (Bank of Spain); Iriberri, Nagore (University of the Basque Country); Machelett, Margarita (Banco de España) |
| Abstract: | Gender gaps in financial literacy are pervasive and persistent. They are partly explained because women choose "I do not know" more frequently. We test for the effectiveness of three interventions to shift this behavior. The control survey includes the possibility of "I do not know". The three treatments either exclude this possibility, offer incentives for correct answers, or inform survey takers of the existing gender gap in choosing this answer option. While all interventions are very effective in reducing this answer option, only the information significantly reduces the gender gap in "I do not know" and in financial literacy. |
| Keywords: | financial literacy, gender gaps, survey methods |
| JEL: | C8 C9 D14 D91 G53 I22 J16 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16628&r=fle |
| By: | Zuchowski, David |
| Abstract: | Does pro-immigrant legislation improve financial inclusion? This paper examines how granting safe havens for immigrants impacts Hispanics' financial behavior and discrimination against them in the U.S. mortgage market. To identify the effect, I take advantage of the staggered implementation of sanctuary policies across counties between 2010 and 2021. Using an event study approach, I find that sanctuary policies increase the demand for mortgages among Hispanics. I also find evidence of a decrease in the rejection rates of mortgage loans requested by Hispanics in counties that implemented sanctuary policies. Politically volatile and Republican-leaning states are the main drivers of the reduction in this potential discriminatory behavior. Taken together, the findings underscore the importance of inclusive public policies in promoting financial inclusion of immigrants. |
| Abstract: | Fördern immigrantenfreundliche Gesetze die finanzielle Inklusion? Diese Studie untersucht, wie die Gewährung von sicheren Zufluchtsorten für Immigranten das Finanzverhalten von Hispanics und die Diskriminierung gegen sie auf dem US-amerikanischen Hypothekenmarkt beeinflusst. Um den Effekt zu identifizieren, mache ich Gebrauch von der zeitlich gestaffelten Einführung sogenannter Sanctuary Policies in den Kreisen in den USA zwischen 2010 und 2021. Mit Hilfe eines Ereignisstudienansatzes komme ich zu dem Ergebnis, dass Sanctuary Policies die Nachfrage nach Hypotheken unter Hispanics erhöhen. Es gibt auch Hinweise auf eine Verringerung der Ablehnungsquoten von Hypothekenanträgen von Hispanics in Kreisen, die Sanctuary Policies umgesetzt haben. Kreise in politisch instabilen und republikanisch geprägten Bundesstaaten sind die Haupttreiber der Reduzierung dieses potenziell diskriminierenden Verhaltens. Insgesamt unterstreichen die Ergebnisse die Bedeutung von inklusiven Gesetzen zur Förderung der finanziellen Integration von Einwanderern. |
| Keywords: | Sanctuary policies, immigration policy, mortgages, financial inclusion |
| JEL: | G21 J15 J68 K37 R21 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:280425&r=fle |
| By: | Carolina Guerini; Donato Masciandaro |
| Abstract: | In any country, financial education can be driven by private and public interests. However, in both cases, trade-offs must be addressed and fixed. Private educators can elicit and educate individuals. However, as education is a credence good, quality-disclosure and conflict-of-interest issues can emerge. In parallel, public institutions can act as third-party certifiers, but political incentives that support inaction can produce quality disclosure and conflict-of-interest issues. The aim of the article is to use marketing and economics as complementary methodological tools to offer a general analysis in which financial education is the outcome of both market and state forces. The framework is then applied to the case of Italy where, in recent years, private and public players have proposed financial-education initiatives, while a public certifier has also been active in this field |
| Keywords: | financial education, financial literacy, trust, education marketing, elicitation, quality disclosure, conflict of interest, third-party certification, political competition |
| JEL: | D72 G28 G53 L15 M3 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:baf:cbafwp:cbafwp23213&r=fle |
| By: | Christopher Ball; Adam Richardson; Guanyu Zheng (Reserve Bank of New Zealand) |
| Abstract: | This note uses linked administrative data to investigate the extent to which the financial conditions faced by firms – measured through the implied interest rate from annual tax filings – vary with the ethnic composition of the firm’s owners and shareholders. Access to capital has been highlighted as a barrier and constraint for MÄ ori firms (New Zealand Productivity Commission 2021, and the references within), owing to a combination of legislative challenges specific to MÄ ori land-based businesses, systemic bias in the financial system, low financial literacy rates and existing disparities in income, home-ownership and business experience. This research is part of a wider work programme at the Reserve Bank investigating the financial system landscape faced by MÄ ori entities. This note builds on previous work looking at specific dimensions of our analysis, specifically the work of Te Puni KÅ kiri and Nicholson Consulting (2020) for defining MÄ ori firms and Fabling (2021) for building firm balance-sheet measures using administrative tax data. This work brings together MÄ ori firms, the firm balance-sheet measures and the characteristics of the owners and shareholders to investigate the financial conditions faced by MÄ ori firms, and how these compare to New Zealand firms more generally. While the note measures variations in firm financing for each of the major ethnic groups in New Zealand, the presentation of the results throughout the rest of the note focuses on MÄ ori firms given the observed disparities in outcomes. The key insights from this note are as follows. First, MÄ ori firms are, on average, paying higher implied interest rates on debt compared to non-MÄ ori firms. This stage of the analysis does not adjust for the characteristics of firms or their owners, but this finding for the average interest rates is robust to a range of definitions for a MÄ ori firm, and for each of the broad industry groups considered in this analysis. Second, after adjusting for the available characteristics of firms and their owners, this analysis finds no statistically significant difference in the implied interest rates paid by MÄ ori and non-MÄ ori firms. The analysis is complicated by the fact that around half of owners who identify as MÄ ori also identify as European. To put this another way, our analysis does not find evidence that systemic ethnic bias plays a role in determining the interest rates paid by firms. It shows that the difference in interest rates paid by MÄ ori and non-MÄ ori firms can be explained by the characteristics of the firms receiving the loans. However, it addresses only one dimension of firms’ access to finance. Bias may be present across other dimensions. Data limitations prevent us from exploring whether there is systemic bias at the loan application stage, for example. Finally, this analysis highlights a number of data gaps, particularly the lack of loan level application data for firms. A more comprehensive investigation of ethnic variation in firm financing would need to address these data gaps. Key findings of Analytical Note: - This note uses annual tax filings from firms – consisting of companies, working proprietors and sole traders – to calculate an implied interest rate on debt. These firm data can be linked to the owners and shareholders to investigate the effect of ethnicity on firm financing. - MÄ ori firms, defined using the ethnicity of the owners, are paying higher implied interest rates on average than non-MÄ ori firms, by about 50 basis points. - This analysis does not find evidence of systemic ethnic bias in the financial sector contributing to the interest rates paid by firms. It shows that the difference in interest rates paid by MÄ ori and non-MÄ ori firms can be explained by the characteristics of the firms receiving the loans. However, it addresses only one dimension of firms’ access to finance. Bias may be present across other dimensions. Further research is required to determine why MÄ ori firms tend to have firm characteristics that raise financing costs - the role of home ownership and socioeconomic disparities would be interesting areas of future research. - This analysis highlights a number of data gaps, particularly the lack of data linked to loan applications. A more comprehensive investigation of ethnic variation in firm financing would need to address these data gaps. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:nzb:nzbans:2022/11&r=fle |
| By: | Gutiérrez, José Manuel |
| Abstract: | A comparative picture of the literacy processes in Western Europe on the eve of and during the Second Industrial Revolution is provided, taking censual literacy rates as a yardstick to measure and compare literacy in different countries. If only partial or insufficient censual data are available, literacy is assessed as if given by full censual data. Four literacy groups result. The area of Western Europe where mass literacy was first achieved was the German-speaking or culturally highly Germanised zone. Britain and Sweden turn out to be in the same cluster as France. The periphery of Western Europe shows the well-known pattern of delayed literacy development. |
| Keywords: | literacy; census; comparability of data |
| JEL: | N33 |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119319&r=fle |