Mobile Money and School Participation: Evidence from Low Income Countries

Dondena Working Papers Carlo F. Dondena Centre for Research on Social Dynamics and Public Policy Population Dynamics and Health. Working Paper No. 109 October 2017

22 Pages Posted: 19 Jun 2019

See all articles by Valentina Rotondi

Valentina Rotondi

University of Oxford

Francesco C. Billari

Bocconi University - Department of Policy Analysis and Public Management

Date Written: January 25, 2018

Abstract

This paper investigates the effect of using mobile money technology on children’s school participation in low-income societies. We argue that, by reducing transaction costs, and by making it easier and less expensive to receive remittances, mobile money technology reduces the need for coping strategies that are detrimental to child development, such as withdrawing children from school and sending them to work. We test this hypothesis using a set of comparative samples from seven low-income countries. We find that mobile money technology increases the chances of children attending school. This finding is robust to the use of estimation techniques that deal with possible endogeneity issues. We also show that the effect of mobile money is mainly driven by African countries and that, at least for girls, it is significantly higher when the household is living below the poverty line.

Keywords: Mobile money, School, Child Labor, Technology, Digital Revolution

JEL Classification: O16, O17, G20, O33

Suggested Citation

Rotondi, Valentina and Billari, Francesco C., Mobile Money and School Participation: Evidence from Low Income Countries (January 25, 2018). Dondena Working Papers Carlo F. Dondena Centre for Research on Social Dynamics and Public Policy Population Dynamics and Health. Working Paper No. 109 October 2017 , Available at SSRN: https://ssrn.com/abstract=3109815 or http://dx.doi.org/10.2139/ssrn.3109815

Valentina Rotondi (Contact Author)

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Francesco C. Billari

Bocconi University - Department of Policy Analysis and Public Management ( email )

Via Roentgen 1
Milan, 20136
Italy

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