Job status and fintech use in MENA countries prior and during the pandemic: does youth age matter?

Abstract

The effective use of financial digital services (Fintech) constitutes as a mean of Financial inclusion for young. We analyse the determinants of this
use prior and during the COVID-19 pandemic for two youth age groups (15-24 and 25-34 years) of five MENA countries (Egypt, Jordan, Lebanon,
Tunisia and Palestine). Our samples are drawn from the Global Findex Database in 2014, 2017 and 2021. A probit regression model with interaction
variables estimates the relationship between job status (wage employment and self-employment) and Fintech use according to age groups. We check
the robustness of estimates upon youth age groups. The main results identify similar determinants of Fintech use for each youth age groups,
which are however distinct by survey period. The use of fintech depend on the same factors, requiring a higher level of education, a large income
and being an employee. During the pandemic, youths increased their use of fintech, which became a substitute, whereas fintech shrinked the age
gap regarding financial inclusion. Age influences the relationship between job status and fintech use positively before the pandemic but negatively
during the pandemic if entrepreneurs are very young.