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Access to the banking sector and employment in Africa

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  • Ouédraogo, Rasmané
  • Sawadogo, Relwendé
  • Sawadogo, Hamidou

Abstract

African countries are desperate to tackle high level of unemployment, particularly among young people. In this paper, we examine the impact of access to the banking sector on employment in Africa using micro-level data from the sixth round of Afrobarometer surveys. The sample covers more than 53,000 people from 36 African countries. After controlling for several covariates and addressing the endogeneity issue, we find that having access to the banking sector increases the probability of being employed by nearly 15 percent. Our results are robust to alternative specifications. The findings of this paper support the view that African countries should implement policies aiming at improving the access to the banking sector to boost jobs creation and address the issue of unemployment in the continent.

Suggested Citation

  • Ouédraogo, Rasmané & Sawadogo, Relwendé & Sawadogo, Hamidou, 2021. "Access to the banking sector and employment in Africa," The Quarterly Review of Economics and Finance, Elsevier, vol. 82(C), pages 260-269.
    • Handle: RePEc:eee:quaeco:v:82:y:2021:i:c:p:260-269
    DOI: 10.1016/j.qref.2021.09.009
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