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Financial Inclusion, Shocks, and Poverty: Evidence from the Expansion of Mobile Money in Tanzania

Author

Listed:
  • Olukorede Abiona
  • Martin Foureaux Koppensteiner

Abstract

We estimate the effect of mobile money adoption on consumption smoothing, poverty, and human capital investments in Tanzania. We exploit the rapid expansion of the mobile money agent network between 2010 and 2012 and use this together with idiosyncratic shocks from variation in rainfall over time and across space in a difference-in-difference framework. We find that adopter households are able to smooth consumption during periods of shocks and maintain their investments in human capital. Results on time use of children and labor force participation complement the findings on the important role of mobile money for the intergenerational transmission of poverty.

Suggested Citation

  • Olukorede Abiona & Martin Foureaux Koppensteiner, 2022. "Financial Inclusion, Shocks, and Poverty: Evidence from the Expansion of Mobile Money in Tanzania," Journal of Human Resources, University of Wisconsin Press, vol. 57(2), pages 435-464.
    • Handle: RePEc:uwp:jhriss:v:57:y:2022:i:2:p:435-464
    Note: DOI: 10.3368/jhr.57.2.1018-9796R1
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    Cited by:

    1. Ajefu, Joseph B. & Massacky, Falecia, 2023. "Mobile money, child labour and school enrolment," Telecommunications Policy, Elsevier, vol. 47(10).
    2. Mohammed Hersi Warsame & Yousif Abdelbagi Abdalla, 2024. "Impact of mobile financial services on financial inclusion: empirical insights from Kenya," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 71(3), pages 633-666, September.
    3. Davis Matari & Ruth Temba, 2024. "The Factors Affecting the Adoption of Financial Technologies (Fintech) by Tanzania’s Informal Sector for the Growth of their Assets," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(12), pages 227-241, December.
    4. Joseph B. Ajefu & Efobi Uchenna & Lydia Adeoye & Israel Davidson & Matthew Onalo Agbawn, 2024. "Exploring how mobile money adoption affects nutrition and household food security," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(5), pages 2414-2429, July.
    5. Melain Modeste Senou & Denis Acclassato Houensou, 2024. "From expanding financial services to tackling poverty in West African Economic and Monetary Union: The accelerating role of mobile money," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(3), pages 1707-1737, April.
    6. Gbêtondji Melaine Armel Nonvide, 2025. "Mobile Money: An Innovative Solution to Reduce Households’ Vulnerability to Economic Shocks," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 9466-9491, June.
    7. Anna Josephson, 2021. "Intra-Household Management of Joint Resources: Evidence from Malawi," Papers 2112.12766, arXiv.org, revised Apr 2022.
    8. Lijin Liu & Yilin Wu, 2024. "Drought shocks, adaptive strategies, and vulnerability to relative poverty," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 120(14), pages 12679-12703, November.
    9. Tuan-Hock Ng & Ying-Zhee Lim & Chun-Teck Lye & Kar-Hoong Chan & Ying-San Lim, 2025. "Catalysing sustainable change: the role of digital finance in poverty alleviation in Asia," Quality & Quantity: International Journal of Methodology, Springer, vol. 59(2), pages 1305-1325, April.
    10. Dao Ha & Phuong Le & Duc Khuong Nguyen, 2025. "Financial inclusion and fintech: a state-of-the-art systematic literature review," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-42, December.
    11. Ahmad Hassan Ahmad & Christopher Green & Fei Jiang, 2020. "Mobile Money, Financial Inclusion And Development: A Review With Reference To African Experience," Journal of Economic Surveys, Wiley Blackwell, vol. 34(4), pages 753-792, September.

    More about this item

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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