This research investigates the factors that contribute to the gender gap in financial inclusion (FI), both traditional and digital, in Palestine. It also examines the influence of the COVID-19 Pandemic on the gender gap in FI, given its ramifications on economic growth and development. The study uses secondary data from two nationwide FI surveys conducted in 2016 and 2022. It employs Oaxaca-Blinder decomposition and intertemporal decomposition to analyze the changes in gender discrimination in access to financial services over time. Results show a persistently high FI gender gap in 2016 and 2022. The gap narrows slightly over time among older individuals, indicating a positive trend for women in FI across different age brackets. Household composition is pivotal in shaping the gender gap in FI; the gap shrinks among households with a higher proportion of female members. Intertemporal decomposition revealed a worsening or unchanged FI gender gap in most aspects, including access to bank accounts, formal borrowing and adoption of digital financial services. Only the gender gap in access to private insurance decreased between 2016 and 2022, which is generally low in Palestine. Most of the changes in the results between the two surveys seem to be driven by changes in discrimination (the gap explained by the changes in coefficients gap), followed up by changes in Men's returns. The deterioration of women's socioeconomic conditions during the COVID-19 pandemic in Palestine, particularly in terms of labor market participation, had the greatest contribution to the growth of intertemporal gender discrimination in terms of FI and financial literacy. The negative consequences of the Pandemic in terms of income and employment, compounded by Israeli restrictions and rising political tension, contributed to the increase in the FI gender gap. Finally, the adoption of modern financial technologies may be slower among women who may face barriers related to technology literacy or access to digital financial services, meanwhile, a significant influence of financial technology on the likelihood of FI, particularly favoring women.

عنوان المؤتمر

ERF 2024 Annual Conference

دولة المؤتمر

المغرب

تاريخ المؤتمر

21 إبريل، 2024 - 23 إبريل، 2024

راعي المؤتمر

Arab Fund