The long-run poverty and gender impacts of mobile money (Science)

Resource published December 9, 2016

This article shows how the increased access to mobile money has increased long term consumption in Kenya and reduced the number of households in extreme poverty.

In developing countries, bank branches and fixed-line telecommunications are scarce, whereas mobile phones are plentiful. These factors have led to the use of mobile money, whereby money can be deposited to an account linked to a phone, transferred to other users, and converted back into cash. The article explores the impacts, which are more pronounced for female-headed households, appear to be driven by changes in financial behavior—in particular, increased financial resilience and saving—and labor market outcomes, such as occupational choice, especially for women, who moved out of agriculture and into business.

View resources on (login required)