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Growth-mindset financial education and labor supply of low-income women: An RCT evidence from rural China

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  • Wang, Yaojing
  • Yuan, Cheng
  • Zhao, Jiayu

Abstract

This study examines the potential of growth-mindset financial education to empower low-income married women and increase their labor force participation. In contrast to traditional financial literacy programs, which focus on outcomes that concerns managing existing resources, our approach targets maximizing income opportunities outcomes alongside financial knowledge interpretation. We conducted a randomized experiment involving 680 rural married women in a poverty county in China to test the effectiveness of income growth oriented financial education. The results show that women who received this education had 14% higher labor supply participation rate and 1.17 times higher frequency of seeking job information compared to the control group through increased self-efficacy and confidence in pursuing income-generating opportunities. This study offers a novel perspective on how financial education programs can improve financial conditions of underprivileged populations.

Suggested Citation

  • Wang, Yaojing & Yuan, Cheng & Zhao, Jiayu, 2025. "Growth-mindset financial education and labor supply of low-income women: An RCT evidence from rural China," Emerging Markets Review, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:ememar:v:69:y:2025:i:c:s1566014125001104
    DOI: 10.1016/j.ememar.2025.101361
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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