Does female labour force participation contribute to better financial inclusion? Evidence from cross-country analysis
Journal of Economic and Administrative Sciences
ISSN: 1026-4116
Article publication date: 28 December 2020
Issue publication date: 22 October 2021
Abstract
Purpose
The purpose of this paper is to analyse the impact of female labour force participation (FLFP) in the access and usage of formal financial services by women.
Design/methodology/approach
The study uses cross-country data from 107 countries. The study uses multivariate regression (OLS) to explain the impact of FLFP on the financial inclusion variables. The study also accounted for different groups of country-level control variables. Instrumental variables regression is also used in the study to consider for endogeneity issues.
Findings
The results show that FLFP has significant influence on all of the financial inclusion variables used in the study. The role of financial literacy is prominent in determining women's access to sophisticated financial services such as debit card and credit card. Improving financial infrastructure of an economy facilitates greater access to formal account by women
Practical implications
From policymakers’ perspective, women should be motivated to enter labour market for better financial inclusion.
Social implications
More opportunities for women to enter formal employment encourages female participation in labour market and benefits women and the economy.
Originality/value
This paper is the first of its kind to study the influence of FLFP on indicators of financial inclusion of women. The study extended the scope of access to financial services by considering access to bank account, debit card and credit card. The study also analysed use of financial services through digital platforms by women.
Keywords
Citation
Balasubramanian, S.A. and Kuppusamy, T. (2021), "Does female labour force participation contribute to better financial inclusion? Evidence from cross-country analysis", Journal of Economic and Administrative Sciences, Vol. 37 No. 4, pp. 643-658. https://doi.org/10.1108/JEAS-08-2020-0151
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited