Table 2.
Financial literacy and poverty (IV-Probit results)
| (1) | (2) | (3) | (4) | |
|---|---|---|---|---|
| Poverty (0/1) | Full | Kenya | Tanzania | Uganda |
| Pane A: Full sample | ||||
| Financial literacy | − 0.069*** | − 0.059*** | − 0.067*** | − 0.042*** |
| (0.007) | (0.011) | (0.013) | (0.010) | |
| Household head variables | Yes | Yes | Yes | Yes |
| Country fixed effects | Yes | No | No | No |
| First stage | ||||
| Average FL among neighbors | 0.894*** | 0.908*** | 0.834*** | 0.924*** |
| (0.022) | (0.039) | (0.041) | (0.038) | |
| F-statistic of first stage | 1613.08 | 553.48 | 407.51 | 595.77 |
| Observations | 9149 | 3111 | 3048 | 2985 |
| Pane B: Rural sample | ||||
| Financial literacy | − 0.055*** | − 0.066*** | − 0.027* | − 0.036*** |
| (0.009) | (0.015) | (0.014) | (0.012) | |
| Household head variables | Yes | Yes | Yes | Yes |
| Country fixed effects | Yes | No | No | No |
| First stage | ||||
| Average FL among neighbors | 0.892*** | 0.902*** | 0.838*** | 0.941*** |
| (0.026) | (0.049) | (0.049) | (0.043) | |
| F-statistic of first stage | 1134.42 | 340.32 | 296.31 | 482.71 |
| Observations | 6128 | 1912 | 2059 | 2155 |
| Pane C: Urban sample | ||||
| Financial literacy | − 0.114*** | − 0.056*** | − 0.154*** | − 0.064*** |
| (0.011) | (0.019) | (0.018) | (0.020) | |
| Household head variables | Yes | Yes | Yes | Yes |
| Country fixed effects | Yes | No | No | No |
| First stage | ||||
| Average FL among neighbors | 0.902*** | 0.934*** | 0.831*** | 0.894*** |
| (0.043) | (0.063) | (0.080) | (0.082) | |
| F-statistic of first stage | 452.23 | 216.06 | 105.70 | 116.02 |
| Observations | 3003 | 1197 | 983 | 823 |
| Pane D: Male sample | ||||
| Financial literacy | − 0.074*** | − 0.063*** | − 0.086*** | − 0.045*** |
| (0.012) | (0.021) | (0.022) | (0.017) | |
| Household head variables | Yes | Yes | Yes | Yes |
| Country fixed effects | Yes | No | No | No |
| First stage | ||||
| Average FL among neighbors | 0.847*** | 0.790*** | 0.771*** | 0.938*** |
| (0.035) | (0.061) | (0.067) | (0.058) | |
| F-statistic of first stage | 579.88 | 165.86 | 130.58 | 257.97 |
| Observations | 3450 | 1165 | 1162 | 1120 |
| Pane E: Female sample | ||||
| Financial literacy | − 0.065*** | − 0.060*** | − 0.056*** | − 0.039*** |
| (0.008) | (0.013) | (0.016) | (0.013) | |
| Household head variables | Yes | Yes | Yes | Yes |
| Country fixed effects | Yes | No | No | No |
| First stage | ||||
| Average FL among neighbors | 0.926*** | 0.998*** | 0.870*** | 0.912*** |
| (0.029) | (0.049) | (0.052) | (0.050) | |
| F-statistic of first stage | 1036.42 | 405.20 | 275.84 | 334.70 |
| Observations | 5699 | 1946 | 1885 | 1865 |
Note: FL, financial literacy; Standard errors in parentheses
* p < 0.1; ** p < 0.05; *** p < 0.01