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Financial inclusion in high-income countries: gender gap or poverty trap?

In: Handbook of Microfinance, Financial Inclusion and Development

Author

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  • Anastasia Cozarenco
  • Ariane Szafarz
Abstract
Little is known about the determinants of financial inclusion in high-income countries. Using the Findex dataset, we focus on two regions: The Euro area and North America. In the Euro area, access to financial services can be challenging for women, while in North America, poor households are particularly underserved. This chapter explores potential explanatory factors for the gender and poverty gaps in these two regions. As expected, the region-wise poverty gaps in financial inclusion are aligned with inequality measures. Yet, the factors connected with gender gaps are less intuitive. Our analysis shows that gender gaps in financial inclusion are related more to gendered labor-market characteristics than to institutional gender discrimination. This evidence suggests a link between financial inclusion and the need for consumption smoothing. We therefore speculate that, in high-income countries, gendered financial exclusion is driven more by demand-side factors than by supply-side ones.

Suggested Citation

  • Anastasia Cozarenco & Ariane Szafarz, 2023. "Financial inclusion in high-income countries: gender gap or poverty trap?," Chapters, in: Valentina Hartarska & Robert J. Cull (ed.), Handbook of Microfinance, Financial Inclusion and Development, chapter 15, pages 272-296, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19107_15
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    References listed on IDEAS

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    Cited by:

    1. Cozarenco, Anastasia & Szafarz, Ariane, 2020. "The regulation of prosocial lending: Are loan ceilings effective?," Journal of Banking & Finance, Elsevier, vol. 121(C).

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    More about this item

    Keywords

    Development Studies; Economics and Finance;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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