Mobile Money and the Labor Market: Evidence from Developing Countries

20 Pages Posted: 26 Mar 2019

See all articles by Chiara De Gasperin

Chiara De Gasperin

University of Milano-Bicocca

Valentina Rotondi

Bocconi University - DONDENA - Carlo F. Dondena Centre for Research on Social Dynamics

Luca Stanca

University of Milan, Bicocca - Department of Economics; Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS); Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS)

Date Written: March 25, 2019

Abstract

Mobile money can play an important role in improving financial inclusion and, as a consequence, employment outcomes, especially in areas where adequate financial infrastructures are lacking. In this paper, we study the effects of mobile money use on the employment outcomes of individuals in 8 developing countries. Our findings indicate that, relative to non-users, individuals who use mobile money are more likely to become self-employed and to receive a regular wage. In particular, the positive association between mobile money use and regular wage is found to be robust also when explicitly addressing the potential endogeneity of mobile money. Overall, the evidence suggests that policies aimed at favoring access to and use of mobile money can provide an effective and relatively inexpensive tool in the agenda for sustainable development.

Keywords: Mobile Money, Digital Revolution, Labor Market

JEL Classification: O16, O17, O33, I131

Suggested Citation

De Gasperin, Chiara and Rotondi, Valentina and Stanca, Luca, Mobile Money and the Labor Market: Evidence from Developing Countries (March 25, 2019). University of Milan Bicocca Department of Economics, Management and Statistics Working Paper No. 403 (2019). Available at SSRN: https://ssrn.com/abstract=3360234 or http://dx.doi.org/10.2139/ssrn.3360234

Chiara De Gasperin

University of Milano-Bicocca ( email )

Piazza Ateneo Nuovo 1
Milan, MI Milano 20126
Italy

Valentina Rotondi

Bocconi University - DONDENA - Carlo F. Dondena Centre for Research on Social Dynamics ( email )

Via Roentgen 1
Milan, 20136
Italy

Luca Stanca (Contact Author)

University of Milan, Bicocca - Department of Economics ( email )

Piazza dell'Ateneo, Nuovo I
Milan 20126
Italy

Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milano, 20126
Italy

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milan, 20126
Italy

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