Financial Outreach and Working Poverty in Developing Countries : New Evidence from Bank Penetration

Although a growing body of literature emphasizes that the poor may benefit from better access to financial services through more growth and employment opportunities, there is a continuing debate about the mechanism and extent to which such access w...

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Main Authors:	Coulibaly, Aissata, Yogo, Urbain Thierry
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	FINANCIAL INCLUSION BANK PENETRATION WORKING POVERTY ACCESS TO FINANCE FINANCIAL SERVICES POVERTY LINE HOUSEHOLD SURVEY EMPLOYMENT WORKING POOR INEQUALITY INCOME DISTRIBUTION
Online Access:	http://documents.worldbank.org/curated/en/547731545403972846/Financial-Outreach-and-Working-Poverty-in-Developing-Countries-New-Evidence-from-Bank-Penetration http://hdl.handle.net/10986/31088

id	okr-10986-31088
recordtype	oai_dc
spelling	okr-10986-310882021-06-08T14:42:45Z Financial Outreach and Working Poverty in Developing Countries : New Evidence from Bank Penetration Coulibaly, Aissata Yogo, Urbain Thierry FINANCIAL INCLUSION BANK PENETRATION WORKING POVERTY ACCESS TO FINANCE FINANCIAL SERVICES POVERTY LINE HOUSEHOLD SURVEY EMPLOYMENT WORKING POOR INEQUALITY INCOME DISTRIBUTION Although a growing body of literature emphasizes that the poor may benefit from better access to financial services through more growth and employment opportunities, there is a continuing debate about the mechanism and extent to which such access would reduce inequalities. Considering that labor is the main asset of the poor, this paper investigates the impact of access to financial services, measured by the number of bank branches, on working poverty and inequality in the labor market. The study uses a panel of 63 developing countries over 2004-13 to demonstrate that improving financial access reduces the proportion of poor workers, especially in countries hit by macroeconomic instability. The analysis shows that the negative impact on working poverty is two times less important than the positive impact on workers at the top of the income distribution, suggesting an increase in inequality. But this effect is mitigated, since the study finds evidence that providing greater access to financial services for relatively rich workers can have a strong effect on decreasing working poverty. 2018-12-28T17:46:20Z 2018-12-28T17:46:20Z 2018-12 Working Paper http://documents.worldbank.org/curated/en/547731545403972846/Financial-Outreach-and-Working-Poverty-in-Developing-Countries-New-Evidence-from-Bank-Penetration http://hdl.handle.net/10986/31088 English Policy Research Working Paper;No. 8687 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FINANCIAL INCLUSION BANK PENETRATION WORKING POVERTY ACCESS TO FINANCE FINANCIAL SERVICES POVERTY LINE HOUSEHOLD SURVEY EMPLOYMENT WORKING POOR INEQUALITY INCOME DISTRIBUTION
spellingShingle	FINANCIAL INCLUSION BANK PENETRATION WORKING POVERTY ACCESS TO FINANCE FINANCIAL SERVICES POVERTY LINE HOUSEHOLD SURVEY EMPLOYMENT WORKING POOR INEQUALITY INCOME DISTRIBUTION Coulibaly, Aissata Yogo, Urbain Thierry Financial Outreach and Working Poverty in Developing Countries : New Evidence from Bank Penetration
relation	Policy Research Working Paper;No. 8687
description	Although a growing body of literature emphasizes that the poor may benefit from better access to financial services through more growth and employment opportunities, there is a continuing debate about the mechanism and extent to which such access would reduce inequalities. Considering that labor is the main asset of the poor, this paper investigates the impact of access to financial services, measured by the number of bank branches, on working poverty and inequality in the labor market. The study uses a panel of 63 developing countries over 2004-13 to demonstrate that improving financial access reduces the proportion of poor workers, especially in countries hit by macroeconomic instability. The analysis shows that the negative impact on working poverty is two times less important than the positive impact on workers at the top of the income distribution, suggesting an increase in inequality. But this effect is mitigated, since the study finds evidence that providing greater access to financial services for relatively rich workers can have a strong effect on decreasing working poverty.
format	Working Paper
author	Coulibaly, Aissata Yogo, Urbain Thierry
author_facet	Coulibaly, Aissata Yogo, Urbain Thierry
author_sort	Coulibaly, Aissata
title	Financial Outreach and Working Poverty in Developing Countries : New Evidence from Bank Penetration
title_short	Financial Outreach and Working Poverty in Developing Countries : New Evidence from Bank Penetration
title_full	Financial Outreach and Working Poverty in Developing Countries : New Evidence from Bank Penetration
title_fullStr	Financial Outreach and Working Poverty in Developing Countries : New Evidence from Bank Penetration
title_full_unstemmed	Financial Outreach and Working Poverty in Developing Countries : New Evidence from Bank Penetration
title_sort	financial outreach and working poverty in developing countries : new evidence from bank penetration
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/547731545403972846/Financial-Outreach-and-Working-Poverty-in-Developing-Countries-New-Evidence-from-Bank-Penetration http://hdl.handle.net/10986/31088
_version_	1764473582841233408

Financial Outreach and Working Poverty in Developing Countries : New Evidence from Bank Penetration

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