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1 – 5 of 5Financial inclusion and digital finance go side by side and help enhance agricultural activities; however, the magnitude of digital financial services varies across countries. In…
Abstract
Purpose
Financial inclusion and digital finance go side by side and help enhance agricultural activities; however, the magnitude of digital financial services varies across countries. In line with this argument, this study aims to examine whether financial inclusion enhances agricultural participation and decompose the significance of the difference in determinants of agricultural participation between financially included – not financially included households and digital finance – no digital finance households.
Design/methodology/approach
This study uses Pakistan’s household integrated economic survey 2018/19 to test hypotheses. The logit model is used to examine the effect of financial inclusion on agriculture participation. Moreover, this study employs a nonlinear Fairlie Oaxaca Blinder technique to investigate the difference in determinants of agricultural participation.
Findings
This study reports that financial inclusion positively influences agricultural participation, meaning households may have access to financial services and participate in agricultural activities. The results suggest that the likelihood of participating in agriculture in households with mobiles and smartphones is higher. Moreover, household size, income, age, gender, education, urban, remittances from abroad, fertilizer, pesticides, wheat, cotton, sugarcane, fruits and vegetables are the significant determinants of agricultural participation. To distinguish the financially included – not financially included households’ gap, this study employs a nonlinear Fairlie Oaxaca Blinder decomposition and finds that differences in fertilizer explain the substantial gap in agricultural participation. Likewise, this study tests the digital finance – no digital finance gap and finds that the difference in fertilizer is a significant contributor, describing a considerable gap in agricultural participation.
Research limitations/implications
Empirically identified that various factors cause agricultural participation including financial inclusion and digital finance. Regarding the research limitation, this study only considers a developing country to analyze the findings. However, for future research, scholars may consider some other countries to compare the results and identify their differences.
Practical implications
The accessibility of fertilizer can reduce the agricultural participation gap. However, increased income level, education and cotton and sugar production can also overcome the differences in agriculture participation between digital finance and no digital finance households.
Originality/value
This is the first study to decompose the difference in determinants of agricultural participation between financially and not financially included households.
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Fernando Núñez Hernández, Carlos Usabiaga and Pablo Álvarez de Toledo
The purpose of this study is to analyse the gender wage gap (GWG) in Spain adopting a labour market segmentation approach. Once we obtain the different labour segments (or…
Abstract
Purpose
The purpose of this study is to analyse the gender wage gap (GWG) in Spain adopting a labour market segmentation approach. Once we obtain the different labour segments (or idiosyncratic labour markets), we are able to decompose the GWG into its observed and unobserved heterogeneity components.
Design/methodology/approach
We use the data from the Continuous Sample of Working Lives for the year 2021 (matched employer–employee [EE] data). Contingency tables and clustering techniques are applied to employment data to identify idiosyncratic labour markets where men and/or women of different ages tend to match/associate with different sectors of activity and occupation groups. Once this “heatmap” of labour associations is known, we can analyse its hottest areas (the idiosyncratic labour markets) from the perspective of wage discrimination by gender (Oaxaca-Blinder model).
Findings
In Spain, in general, men are paid more than women, and this is not always justified by their respective attributes. Among our results, the fact stands out that women tend to move to those idiosyncratic markets (biclusters) where the GWG (in favour of men) is smaller.
Research limitations/implications
It has not been possible to obtain remuneration data by job-placement, but an annual EE relationship is used. Future research should attempt to analyse the GWG across the wage distribution in the different idiosyncratic markets.
Practical implications
Our combination of methodologies can be adapted to other economies and variables and provides detailed information on the labour-matching process and gender wage discrimination in segmented labour markets.
Social implications
Our contribution is very important for labour market policies, trying to reduce unfair inequalities.
Originality/value
The study of the GWG from a novel labour segmentation perspective can be interesting for other researchers, institutions and policy makers.
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John Owusu-Afriyie, Priscilla Twumasi Baffour and William Baah-Boateng
This study seeks to estimate union wage effect in the public and private sectors of Ghana, respectively. It also seeks to ascertain whether the union wage effect in the two…
Abstract
Purpose
This study seeks to estimate union wage effect in the public and private sectors of Ghana, respectively. It also seeks to ascertain whether the union wage effect in the two sectors varies.
Design/methodology/approach
The authors use data from the Ghana Living Standards Survey 6 (GLSS 6, 2012/2013) and Ghana Labour Force Survey (GLFS, 2015). In terms of estimation technique, the authors employ the Blinder–Oaxaca decomposition technique to estimate union wage effect in public and private sectors, respectively.
Findings
The findings indicate that union wage effect in the public sector is positive and higher relative to that of the private sector.
Practical implications
The findings imply that strict enforcement of Section 82 of Labour Act 2003 (Act 651) will curb the political influence of public sector unions over their employer (Government).
Originality/value
This research paper has not been presented to any journal for publication and it is the authors' original work.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2023-0045
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Bomikazi Zeka and Abdul Latif Alhassan
While the extant literature has explored issues related to the access, usage and availability of financial services, the ability of households to withstand financial adversities…
Abstract
Purpose
While the extant literature has explored issues related to the access, usage and availability of financial services, the ability of households to withstand financial adversities, particularly those living under economically vulnerable conditions, requires further attention. The paper presents a gendered analysis of financial resilience behaviour in South Africa.
Design/methodology/approach
Using a nationally representative sample of 4,880 households, this paper constructs a financial resilience behaviour index (FRBI) covering savings, credit, insurance, and retirement planning behaviours. The gendered effect of demographic characteristics on financial resilience is examined using the ordinary least square and seemingly unrelated regression techniques.
Findings
The results show that low levels of financial resilience were present across the sample with insurance observed to be the greatest driver of financial resilience, followed by retirement planning, savings and credit respectively. Furthermore, the analysis highlights that a gender gap in financial resilience exists as men are characterized with higher financial resilience behaviour compared to women. The results also suggest that employed women and women with higher levels of education are associated with greater financial resilience.
Practical implications
Based on these results, improving access to higher education and employment opportunities for women will enhance their financial resilience and contribute towards addressing SDG (5) on gender equality.
Originality/value
As far as the authors are aware, this paper presents the first empirical analysis of the gender gaps in socio-demographic characteristics that explain financial resilience in South Africa.
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This study aims to investigate the institutional, macroeconomic and firm-specific determinants of financial leverage in Vietnam and provides new evidence from the dynamic panel…
Abstract
Purpose
This study aims to investigate the institutional, macroeconomic and firm-specific determinants of financial leverage in Vietnam and provides new evidence from the dynamic panel fractional estimator.
Design/methodology/approach
This study uses a panel dataset of 859 Vietnamese firms from 2008 to 2022 and employs three estimators: Feasible Generalized Least Squares (FGLS), System Generalized Method of Moments (SysGMM) and Dynamic Panel Fractional (DPF), with DPF being particularly suitable for handling fractional dependent variables and the dynamic nature of financial leverage.
Findings
The results confirm the dynamic nature of the financial leverage model, with firm-specific factors, institutional factors and macroeconomic factors playing significant roles in shaping firms' financing decisions. The DPF estimator highlights the positive impact of stock market development on leverage. This study contributes to the literature by providing new evidence on the determinants of leverage in Vietnam, using the DPF estimator for more accurate estimation and revealing the significant impact of the size of the banking sector, the size of the stock market, the stock market development index, the financial development index and the corruption perception index on leverage.
Originality/value
This study contributes to the literature by providing new evidence on the dynamic nature of the financial leverage model and the impact of institutional, macroeconomic and firm-specific factors on financial leverage in the context of Vietnam. The use of the DPF estimator allows for a more accurate and reliable estimation of the determinants of leverage, considering the fractional nature of the dependent variable and the persistence of capital structure decisions over time.
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