The Impact of Financial Literacy Training for Migrants

31 Pages Posted: 20 Apr 2016

See all articles by John Gibson

John Gibson

University of Waikato; Motu Economic and Public Policy Research

David J. McKenzie

World Bank - Development Research Group (DECRG); IZA Institute of Labor Economics

Bilal Zia

World Bank - Development Research Group (DECRG)

Date Written: May 1, 2012

Abstract

Remittances are a major source of external finance for many developing countries but the cost of sending remittances remains high for many migration corridors. International efforts to lower costs by facilitating the entry of new financial products and new cost comparison information sources rely heavily on the financial literacy of migrants. This paper presents the results of a randomized experiment designed to measure the impact of providing financial literacy training to migrants. Training appears to increase financial knowledge and information seeking behavior and reduce the risk of switching to costlier remittance products. But it does not change either the frequency or level of remittances.

Keywords: Financial Literacy, Access to Finance, Remittances, Population Policies, Education For All

Suggested Citation

Gibson, John and McKenzie, David John and Zia, Bilal, The Impact of Financial Literacy Training for Migrants (May 1, 2012). World Bank Policy Research Working Paper No. 6073, Available at SSRN: https://ssrn.com/abstract=2062102

John Gibson

University of Waikato ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Motu Economic and Public Policy Research

19 Milne Terrace
Island Bay
Wellington, 6002
New Zealand

David John McKenzie

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Bilal Zia

World Bank - Development Research Group (DECRG) ( email )

MC3-445
1818 H Street, N.W.
Washington, DC 20433

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