Table 3

Estimates for the Effect of Mobile Money on Poverty Outcome

Dependent Variable: Absolute Poverty
Mobile money (MM)










Rainfall shock (RS)










Interaction (MM × RS)










Overall effect










Mean outcome0.2830.2830.283
Household fixed effectsYesYesYes
Year fixed effectsYesYesYes
  • Notes: The poverty index takes a value of one for daily real per capita expenditure above 1.25 USD, and zero otherwise. Mobile money denotes the propensity to adopt mobile money account (see Online Appendix A3 for details) at the household level. Rainfall shock denotes the deviation from long-term average rainfall, such that a negative value denotes less than the average rainfall. Each column reports the estimates from a separate regression for 3,448 observations (1,724 households). All regressions include household and year fixed effects. The entries of Columns 1 and 2 of the table report the DiD coefficients from a linear probability model of mobile money, rainfall shock, and their interaction term on a poverty indicator. In Column 3, the variable Mobile money adoption is instrumented by the presence of and distance to the nearest mobile money agent such that Mobile money (MM) [interaction] is instrumented by agent availability in the village and distance to nearest agent (interaction of agent availability in the village with rainfall shocks and distance to nearest agent with rainfall shocks). First-stage results are presented in Online Appendix Table A6. The controls used in the estimation of Column 2 and 3 include an array of household-level covariates (gender of household head, education and occupation categories of household head, household size, average household age, rural dummy, household asset value, number of mobile phones in the household, indicator variables for household membership of a SACCO group, household membership of any other credit and savings society, household access to loan facilities and bank account ownership, and the interaction of the financial inclusion variables with the shock variable). Robust standard errors, clustered at the enumeration area, are reported in parentheses. Robust standard errors, clustered at the district level, are reported in square brackets. Significance: p 0.10, **p < 0.05, ***p < 0.01.