Financial Inclusion and Its Heterogeneous Effect on Household Income

Serie

  • Documentos de trabajo - Alianza EFI

Resumen

  • This paper examines how, in the main Colombian cities, the effect of financial inclusion (FI) on income changes along the distribution of household income considering labor informality. We construct a multidimensional FI indicator based on the World Bank definition and on the data. Using a quantile regression technique, we estimate the effect of FI on income at each quantile for informal and formal households. The findings indicate that FI has a positive impact throughout the income distribution but is greater in low-income and informal households. The results suggest that FI can have potential effects in alleviating poverty and closing the income gap.

fecha de publicación

  • 2020

Líneas de investigación

  • Financial Inclusion
  • Household Income
  • Labor Informality

Issue

  • 19121