The Effects of Free Primary Education on Financial Inclusion in Kenya

Research Seminars
Academic Areas Economics and Public Policy
Kehinde F. Ajayi (Boston University), Assistant Professor , Boston UniversityResearch Interests: Economics of Education, Development Economics, Labor Economics
August 19, 2016 | 3:00 PM - 4:00 PM | Friday
AC4 MLT, Level 2, ISB, Hyderabad, India
Contact: Neha Gupta,,
For ISB Community
Speaker: Kehinde F. Ajayi (Boston University)

Summary: The speaker intends to present her study about effect of free primary education in Kenya. This paper examines the effects of education on financial inclusion. Using Kenya's introduction of Free Primary Education in 2003 as an exogenous shock to educational attainment, we estimate impacts on financial security and the use formal financial services. We find that FPE increased educational attainment and incomes. We also find increases in financial inclusion for females, particularly through the use of mobile banking. Despite these positive outcomes, we find no improvements in effective numeracy, retirement planning, or subjective financial well-being. These results suggest that education primarily increases financial inclusion through an income channel, with little direct impact on financial decision-making.