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Is financial inclusion a source of happiness?

Author

Listed:
  • Axelle Heyert

    (LaRGE Research Center, Université de Strasbourg)

  • Laurent Weill

    (LaRGE Research Center, Université de Strasbourg)

Abstract

This paper investigates whether financial inclusion affects life satisfaction. We perform regressions at the individual level on a large dataset of 59,209 individuals from 29 countries. We find evidence that financial inclusion improves life satisfaction. We further establish that the beneficial effect of financial inclusion takes place through a better health, education and to a lesser extent through the launch of a business. We observe that the positive impact of financial inclusion on life satisfaction is greater in countries with higher income per capita, and lower in countries recently struck by a financial crisis. Our results indicate that promoting financial inclusion can enhance happiness.

Suggested Citation

  • Axelle Heyert & Laurent Weill, 2024. "Is financial inclusion a source of happiness?," Working Papers of LaRGE Research Center 2024-07, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
    • Handle: RePEc:lar:wpaper:2024-07
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    File URL: http://ifs.u-strasbg.fr/large/publications/2024/2024-07.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    financial inclusion; life satisfaction; banking.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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