Analysis of the impact of financial inclusion and FinTech on youth labour force participation in the MENA region
DOI:
https://doi.org/10.18559/ebr.2024.4.1668Keywords:
Fintech, MENA, financial inclusion, labor force, youth, propensity score matchingAbstract
This study examines the determinants of financial inclusion and FinTech in order to evaluate their effects on youth labor force participation in the MENA region. The World Bank's Global Findex 2021 database was used to perform probit estimations and propensity score matching. The results show that young people with higher education levels, higher incomes, mobile phones and internet access are more likely to be included in the traditional and digital financial systems. In addition, the factors hindering financial inclusion include a lack of documentation, religious constraints and the costs associated with financial services. Furthermore, examining the effect of financial inclusion and fintech reveals that having formal bank accounts and mobile money accounts, as well as savings, formal loans, and digital transactions have a significant impact on young people's participation in the labor force.
JEL Classification
General (G50)
Labor Force and Employment, Size, and Structure (J21)
Financial Markets and Institutions (N2)
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