Digital wage payments and financial inclusion in Developing and Emerging Economies

Date : Vendredi | 2024-04-26 à 12h30
Lieu : Salle des thèses

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Ismail BELLO (LEO, Université d’Orléans)

The study examines the impact of wage payment mode on financial inclusion in Developing and Emerging Economies. In such countries, non-bank financial institutions like mobile money agents have an important role as payment service providers. To account for this specificity, we build two indices: a traditional (banking) financial inclusion index, and a digital financial inclusion index. We test the hypothesis that distributing wages on financial accounts, through mobile phones or cards (which we label "digital wage payment"), does increase financial inclusion, whereas wages paid in cash do not. Countries wishing to improve their financial inclusion would therefore have a lever for action by regulating how salaries are paid.