Compulsory education enhances financial inclusion across socioeconomic groups: a global analysis

Abstract In this study, we investigate the role of compulsory education in enhancing financial inclusion across various sociodemographic groups, with a focus on age, gender, and income level. Using data from 160 countries, we employ an instrumental variable model incorporating expected years of scho...

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Bibliographic Details
Main Authors: Eunjung Park, Sangyoon Yi
Format: Article
Language:English
Published: Springer Nature 2025-05-01
Series:Humanities & Social Sciences Communications
Online Access:https://doi.org/10.1057/s41599-025-04911-y
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Summary:Abstract In this study, we investigate the role of compulsory education in enhancing financial inclusion across various sociodemographic groups, with a focus on age, gender, and income level. Using data from 160 countries, we employ an instrumental variable model incorporating expected years of schooling and the human rights index to determine the minimum education level necessary for effective financial participation. Our findings reveal that while compulsory education generally promotes financial inclusion, the extent of its impact varies among different socioeconomic groups. For high-income classes, lower levels of education suffice, but other groups require at least an upper-secondary education to benefit significantly. This research highlights the importance of tailored educational policies in reducing financial barriers and fostering inclusive economic participation, particularly for women and socially marginalized individuals. The study contributes to the strategic development of education programs aimed at achieving broader financial inclusion, which is especially pertinent in the wake of economic disruptions caused by the COVID-19 pandemic.
ISSN:2662-9992