Gender differences in unidimensional and multidimensional financial inclusion in Burkina Faso

Although household access to financial services is widely recognized as a key lever for poverty reduction, a large proportion of the population, particularly women, remains excluded from using theses services in developing countries. This paper provides an in-depth analysis of the socio-economic factors contributing to gender disparities in financial inclusion, considering both multidimensional and unidimensional aspects. Unidimensional inclusion is measured using three specific indicators: access to a formal bank account, formal savings, and access to formal credit. These indicators are also employed to construct the multidimensional measure of financial inclusion. Using a sample of 1000 observations from the Global Financial Inclusion Index (Findex Global Findex (2021) https://microdata.worldbank.org/index.php/catalog/globalfindex/?page=1&ps=15&repo=global-findex ) database for Burkina Faso, the study applies the Fairlie decomposition method, based on a probit model, to examine these disparities between men and women. The results show that men have higher levels of multidimensional financial inclusion (4.54%), access to a formal account (11.34%), formal savings (4.86%), and formal credit (3.44%). These disparities can be explained mainly by differences in wealth and education attainment. However, socio-economic factors do not significantly explain the gender gap in access to formal credit. These results suggest that public policies aimed at enhancing women’s economic status and education attainment could play a crucial role in reducing inequalities in financial inclusion.