The Socioeconomic Effects of Financial Inclusion in Indonesia
Loading...
Date
2020
Authors
Ruppa, Suvedha J.
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oregon
Abstract
This study looks into the relationship between education for children aged 5-14 and financial inclusion in Indonesia. Using data from the 2014 Indonesian Family Life Survey, I look at enrollment in school for ages 5-14 and standardized test scores for ages 11-14. Because financial inclusion often works through the empowerment of women, I also look at community participation levels for PKK, a government based women’s community group. This study finds a positive correlation between financial inclusion and school enrollment, with a greater relationship between financial inclusion and school enrollment for girls. This may work through a greater emphasis on girls’ education or through women’s empowerment in that mothers may be more likely to send daughters to school than fathers. This study finds no relationship between test scores and financial inclusion. The lack of correlations between test scores and financial inclusion may reflect the quality of education in Indonesia. This study also finds no relationship between PKK participation and financial inclusion which may reflect a lack of organic participation in PKK activities. The overall effects are mixed; while financial inclusion seems to have an effect on school enrollment, particularly for girls, the effects on women’s empowerment and test scores are ambiguous.
Description
40 pages
Keywords
Economics, Financial Inclusion, Microfinance, Education, Socioeconomic Effects, Women's Empowerment, Indonesia, Inside Out 201803-32546