Financial inclusion, shocks, and poverty: Evidence from the expansion of mobile money in Tanzania

Olukorede Abiona, Martin Foureaux Koppensteiner

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18 Citations (Scopus)
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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.
Original languageEnglish
Pages (from-to)435-464
Number of pages30
JournalJournal of Human Resources
Volume57
Issue number2
Early online date18 Feb 2020
DOIs
Publication statusPublished - Mar 2022
Externally publishedYes

Bibliographical note

© 2022 by the Board of Regents of the University of Wisconsin System. Version archived for private and non-commercial use with the permission of the author/s and according to publisher conditions. For further rights please contact the publisher.

Keywords

  • Mobile money
  • household shocks
  • rainfall
  • poverty
  • human capital accumulation
  • Tanzania

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