Impact of Financial Inclusion on Household Welfare in Liberia: A Gendered Perspective

Francis F.B. Mulbah, Olumeh Dennis E., Mantey Vida and Billy Okemer Ipara

Working Papers from African Economic Research Consortium

Abstract: Financial inclusion is critical to achieving the Sustainable Development Goals (SDGs), particularly zero poverty, gender equality, and reduced inequalities, but there is limited evidence of its impacts on household welfare in fragile and post-conflict countries. This study analyses the impact of financial inclusion on household welfare in Liberia using the Liberian Household Income and Expenditure Survey of 2016a€’17. For the empirical analysis, we use an inverse probability-weighted regression adjustment model and separate analyses for male-headed households (MHHs) and female-headed households (FHHs) to identify possible gender differences. We find that the use of mobile money significantly increases household food security for MHHs and FHHs. In particular, the welfare impact is greater for MHHs in terms of food availability while in relation to food quality and dietary diversity, the impact is greater for FHHs. These findings show the need to scale up financial inclusion in fragile and post-conflict countries as a catalyst for improving household welfare

Date: 2022-03
Note: African Economic Research Consortium
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