Fintech, which delivers financial services digitally, promises to promote financial inclusion and close the gender gap. Using a novel fintech dataset for 114 economies worldwide, this paper shows that fintech adoption significantly improves female employment and reduces gender inequality, the effect being more pronounced in firms without traditional financial access. Fintech not only increases the number and ratio of female employees in the workforce, but also mitigates financial constraints of female-headed firms. Digital divide and poor institutions weaken such benefits. Endogeneity is accounted for by a fixed effects identification strategy. We conclude by providing policy recommendations and outlining avenues for future research.
B. Empirical Strategy
C. Data Sources
Empirical Results and Discussion
A. Baseline Results
B. Economic Mechanisms
C. Fintech Interaction with Firm Characteristics
D. Weak Institution Reduces Benefits of Fintech
1. Landscape of Fintech Across Countries
2. Employment Rate by Gender
1. Summary Statistics
2. Fintech Development and Female Employment
3. Economic Mechanisms Underlying the Effect of Fintech Development
4. Fintech and Firm
have constrained access to and usage of fintech to improve gender equality. We proposed pathways to develop enabling infrastructure and improve institutional environment to build a more inclusive fintech ecosystem.
Source: Bank for International Settlements.
Note: The figures represent the percentage of surveyed individuals who use fintech for specific services.
The rest of the paper is organized as follows. Section 2 describes our methodology and data. Section 3 presents empirical results and