The Impact of Financial Inclusion on Household Wellbeing in Ethiopia

This examines the impacts of financial inclusion on household well-being in Ethiopia. It analyzes household-level data from the World Bank's Ethiopian Socio-economic Survey and uses both descriptive and econometric approaches to analyze the data. Propensity Score Matching methods were used in the econometric analysis. The study finds that financial inclusion is positively related to household heads' literacy, the number of rooms in the residence, and wage employment. However, it is negatively related to being a rural resident, being female-headed, being married, and having a high dependency ratio. The results show that financial inclusion has a positive and significant impact on household well-being, as measured by adult equivalent monthly consumption expenditure and poverty headcount. The document concludes by discussing these results in detail and providing recommendations.