Financial inclusion, education, and employment: empirical evidence from 101 countries

Abstract

This study analysed the data of 101 countries from the World Bank’s Financial Inclusion and Financial Availability Survey databases for the years 2011, 2014, 2017, and 2021. It constructed a new financial inclusion evaluation index system using digital empowerment and established a dual fixed-effect panel data regression model to examine the impact of financial inclusion on employment. The study also considered the moderating effect of education on financial inclusion affecting employment. The results indicate that financial inclusion is beneficial to improving employment levels. The level of education development is proportional to the level of employment, and it has a regulatory effect of promoting the financial inclusion’s positive impact on employment level. The heterogeneity analysis demonstrates that the effect of financial inclusion on improving employment levels is greater in female groups. The promotion of financial inclusion is the largest in low- and middle-income countries, followed by high-income countries, indicating that financial inclusion must have a certain economic foundation to fully play its role, and it has more obvious benefits for relatively poor and weak areas than for high-income areas. The conclusions of this study have implications for improving employment and augmenting financial inclusion.