GTAP Resources: Resource Display
| GTAP Resource #7462 |
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"Fintech, Credit Constraints and Educational Intergenerational Mobility: Evidence from Cameroon" by Avom, Désiré and Yvan Audrey Kamdem Abstract Economic theory suggests that credit constraints hinder educational intergenerational mobility (IM). However, empirical evidence on this hypothesis is mixed, with limited insights on the role of fintech. In this paper, we use data from Cameroonian Household Surveys (10,274 children) to explore this issue in the under-researched context of sub-Saharan Africa. Regarding the methods, we use the mediation analysis framework and apply quasi-counterfactual experiments and instrumental variables techniques. We find four main results: (1) Eliminating credit constraints in Cameroon would increase upward mobility by 9% and reduce downward mobility by 2%. (2) Children who potentially benefited from fintech during their schooling are 65% more likely to experience upward mobility and 7% less at risk of downward mobility. (3) The fintech effect is indirect and partly mediated through the reduction (15-40%) of credit constraints that hinder IM. (4) The magnitude of fintech’s indirect effect on IM through credit constraints varies by gender, depending on the context in which the child grows up. Our findings demonstrate robustness across various econometric techniques and control variables, indicating that fintech serves as a market-driven, private-sector solution to improve IM in the Global South. |
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- Education - Technological change - Africa (Central) |
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Public Access  Paper (3.6 MB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
