Heterogeneous effect of financial inclusion on vulnerable employment in Sub-Saharan Africa: the role of political stability

Sub-Saharan Africa (SSA) stands as the epicenter of vulnerable employment. Among its key determinants, financial inclusion emerges as a critical yet underexplored factor. The region also exhibits comparatively low levels of financial inclusion. This paper investigates the heterogeneous effect of fin...

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Main Author: Issa Dianda
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2025.2502431
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author Issa Dianda
author_facet Issa Dianda
author_sort Issa Dianda
collection DOAJ
description Sub-Saharan Africa (SSA) stands as the epicenter of vulnerable employment. Among its key determinants, financial inclusion emerges as a critical yet underexplored factor. The region also exhibits comparatively low levels of financial inclusion. This paper investigates the heterogeneous effect of financial inclusion on vulnerable employment in SSA, with a particular focus on the moderating role of political stability. The empirical analysis relies on Quantile via Moments and Instrumental Variables Quantile Regression methods, using data from 25 countries over the period 2004–2019. The results show that financial inclusion significantly reduces vulnerable employment, with a stronger effect observed in countries where vulnerable employment is most prevalent. Moreover, political stability amplifies this narrowing effect. The findings also reveal that financial inclusion has a greater impact on reducing male vulnerable employment compared to female vulnerable employment. Additionally, all four dimensions of financial inclusion – usability, concentration, availability, and accessibility – contribute to lowering vulnerable employment. These results underscore the importance of policy reforms aimed at enhancing financial inclusion and strengthening political stability as essential levers for promoting access to quality jobs across the region.
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spelling doaj-art-6dab0fc0d15044bfa4bb02079fcad1192025-08-20T01:51:24ZengTaylor & Francis GroupCogent Economics & Finance2332-20392025-12-0113110.1080/23322039.2025.2502431Heterogeneous effect of financial inclusion on vulnerable employment in Sub-Saharan Africa: the role of political stabilityIssa Dianda0Department of Economics, Nazi Boni University, Bobo-Dioulasso, Burkina FasoSub-Saharan Africa (SSA) stands as the epicenter of vulnerable employment. Among its key determinants, financial inclusion emerges as a critical yet underexplored factor. The region also exhibits comparatively low levels of financial inclusion. This paper investigates the heterogeneous effect of financial inclusion on vulnerable employment in SSA, with a particular focus on the moderating role of political stability. The empirical analysis relies on Quantile via Moments and Instrumental Variables Quantile Regression methods, using data from 25 countries over the period 2004–2019. The results show that financial inclusion significantly reduces vulnerable employment, with a stronger effect observed in countries where vulnerable employment is most prevalent. Moreover, political stability amplifies this narrowing effect. The findings also reveal that financial inclusion has a greater impact on reducing male vulnerable employment compared to female vulnerable employment. Additionally, all four dimensions of financial inclusion – usability, concentration, availability, and accessibility – contribute to lowering vulnerable employment. These results underscore the importance of policy reforms aimed at enhancing financial inclusion and strengthening political stability as essential levers for promoting access to quality jobs across the region.https://www.tandfonline.com/doi/10.1080/23322039.2025.2502431Financial inclusionheterogeneous effectvulnerable employmentmethod of moments quantile regressionSub-Saharan AfricaE24
spellingShingle Issa Dianda
Heterogeneous effect of financial inclusion on vulnerable employment in Sub-Saharan Africa: the role of political stability
Cogent Economics & Finance
Financial inclusion
heterogeneous effect
vulnerable employment
method of moments quantile regression
Sub-Saharan Africa
E24
title Heterogeneous effect of financial inclusion on vulnerable employment in Sub-Saharan Africa: the role of political stability
title_full Heterogeneous effect of financial inclusion on vulnerable employment in Sub-Saharan Africa: the role of political stability
title_fullStr Heterogeneous effect of financial inclusion on vulnerable employment in Sub-Saharan Africa: the role of political stability
title_full_unstemmed Heterogeneous effect of financial inclusion on vulnerable employment in Sub-Saharan Africa: the role of political stability
title_short Heterogeneous effect of financial inclusion on vulnerable employment in Sub-Saharan Africa: the role of political stability
title_sort heterogeneous effect of financial inclusion on vulnerable employment in sub saharan africa the role of political stability
topic Financial inclusion
heterogeneous effect
vulnerable employment
method of moments quantile regression
Sub-Saharan Africa
E24
url https://www.tandfonline.com/doi/10.1080/23322039.2025.2502431
work_keys_str_mv AT issadianda heterogeneouseffectoffinancialinclusiononvulnerableemploymentinsubsaharanafricatheroleofpoliticalstability