Mobile Money and the Labor Market: Evidence from Developing Countries
20 Pages Posted: 26 Mar 2019
Date Written: March 25, 2019
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: Suggested Citation