Work

Financial Inclusion, Shocks, and Poverty

Year: 2020

Type: article

Abstract: We estimate the effect of mobile money adoption on consumption smoothing, poverty, and human capital investments in Tanzania.We exploit the rapid expansion of the mobile money agent network between 2010 and 2012 and use this together with idiosyncratic shocks from variation in rainfall over time and across space in a difference-in-difference framework.We find that adopter households are able to smooth consumption during periods of shocks and maintain their investments in human capital.Results on time use of children and labor force participation complement the findings on the important role of mobile money for the intergenerational transmission of poverty.

Source: The Journal of Human Resources

DOI: 10.3368/jhr.57.2.1018-9796r1

Authors: Olukorede Abiona, Martin Foureaux Koppensteiner

Institutions: University of Technology Sydney, University of Surrey

Language: English

Topic: Microfinance and Financial Inclusion

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: No poverty, Decent work and economic growth, Reduced inequalities

Open Access status: hybrid

Funders: Department for International Development, Economic and Social Research Council