Digital financial inclusion, the Covid-19 effect, and impact on the multidimensional aspects of wellbeing and income inequalities

Published: 20 February 2024| Version 1 | DOI: 10.17632/pc88c3x23h.1
Koffi Sodokin, Joseph Kokouvi Djafon


The Covid-19 pandemic has undoubtedly constituted a major exogenous economic shock globally, with severe short-term recessions inevitably causing a deterioration in households' living conditions across countries. This study investigates how digital financial inclusion impacted subjective and monetary wellbeing, as well as inequality, among Togolese household heads before and after the pandemic. Using data from the Harmonized Living Standards Measurement Study conducted by Togo's National Institute of Statistics and Demographic Studies in 2018-2019 and 2021-2022, encompassing 6,171 and 6,462 households respectively, a smooth instrumental variable quantile regression analysis was performed. The findings reveal a clear benefit of digital financial inclusion in empowering households to safeguard and improve their monetary wellbeing, even reducing income inequality. However, digital financial inclusion did not translate to improved subjective wellbeing or further reduced income inequality. In fact, the Covid-19 shock exacerbated these shortcomings. These results underscore the multifaceted nature of wellbeing and emphasize the need for public policies acknowledging this complexity to ensure inclusive, equitable progress despite future challenges.



Universite du Lome


Applied Economics