Household Financial Fragility During COVID-19: the Power of Financially Literate Women

Abstract

This paper analyses household financial fragility during the COVID-19 pandemic. Considering the barging theory in households’ decision-making, this paper proposes that women’s financial literacy and their involvement in paid and unpaid work will influence family financial fragility in times of crisis. The results show that women’s financial literacy, their participation in the labour market, and their financial independence have a significant and positive effect on the family’s financial situation during the pandemic. Moreover, the level of women’s unpaid work was identified as a significant element that jeopardizes family financial stability. The results further support the bargaining power theory regarding a better understanding of the complexity of decision-making within households. The results point to a new channel for preserving family financial stability, through the improvement of women’s financial literacy and the development of institutional and social support for their participation in the labour market.

The Effects of Fiscal Dominance on Monetary Policies in Algeria Amidst COVID-19

“…AS shown (Nachege, 2005), many empirical studies have usually employed inflation rate, budget deficit, and money supply to test fiscal dominance using the ideas fiscal theory of the price level FTPL(Afolabi and Atolagbe,2018) and (Mangani,2020). Many industries, including economics and finance, are now more unclear due to the COVID-19 pandemic (Kamel et al, 2023;Lorente et al, 2022;Pepur et al, 2022). However, the pandemic's effects on global supply chains and rising manufacturing costs have also pushed prices higher (Si-Mohammed et al, 2022).…”