Does Financial Inclusion Affect Health Among Older Adults? Evidence from Indonesia
Abstract
While financial inclusion is widely acknowledged as a means to enhance the welfare of all ages, currently, there is no empirical research examining its effects on the health of older adults in Indonesia. This study, therefore, aims to fill the gap by investigating the impact of financial inclusion on the health of older adults in Indonesia using data from the March 2021 National SocioEconomic Survey (SUSENAS). The binary logistics regression was used to assess that effect. The findings reveal that financial inclusion positively benefits the health of older adults in Indonesia, highlighting the importance of policy-making that promotes financial inclusion programs to improve the health outcomes of older adults.
JEL Classification: G2, I1, C31
How to Cite:
Abdurrahman, A., & Haryanto, T. (2023). Does Financial Inclusion Affect Health among Older Adults? Evidence from Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 12(2), 327-340. https://doi.org/10.15408/sjie.v12i2.32001
Keywords
References
Abor, J. Y., Amidu, M., & Issahaku, H. (2018). Mobile Telephony, Financial Inclusion and Inclusive Growth. Journal of African Business, 19(3), 430–453. https://doi.org/10.1080/15228916.2017.1419332
Aguiar, B., & Macário, R. (2017). The Need for an Elderly Centred Mobility Policy. Transportation Research Procedia, 25, 4355–4369. https://doi.org/10.1016/J.TRPRO.2017.05.309
Aguila, E., Angrisani, M., & Blanco, L. R. (2016). Ownership of a Bank Account and Health of Older Hispanics. Economics Letters, 144, 41–44.
Allmark, P., & Machaczek, K. (2015). Financial Capability, Health and Disability Health Behavior, Health Promotion and Society. BMC Public Health, 15(1), 1–5. https://doi.org/10.1186/S12889-015-1589-5.
Astutik, E., Hidajah, A. C., Tama, T. D., Efendi, F., & Li, C. Y. (2021). Prevalence and Determinants of Depressive Symptoms Among Adults in Indonesia: A Cross-Sectional Population-based National Survey. Nursing Forum, 56(1), 37–44. https://doi.org/10.1111/NUF.12508.
Babych, Y., Grigolia, M., & Keshelava, D. (2018). Financial Inclusion, Financial Literacy, and Financial Education in Georgia. ADBI Working Paper, 849.
Bialowolski, P., Xiao, J. J., & Weziak-Bialowolska, D. (2023). Do All Savings Matter Equally? Saving Types and Emotional Well-Being Among Older Adults: Evidence from Panel Data. Journal of Family and Economic Issues, 1, 1–18.
BPS. (2021). Statistik Penduduk Lanjut Usia 2021. Jakarta: Badan Pusat Statistik.
Cameron, A. C., & Trivedi, P. K. (2005). Microeconometrics: Methods and Applications. Cambridge: Cambridge University Press.
Chireshe, J., & Ocran, M. K. (2020). Financial Development and Health Outcomes in Sub-Saharan African Countries. The Journal of Developing Areas, 54(3). https://doi.org/10.1353/JDA.2020.0030.
Churchill, S. A., & Marisetty, V. B. (2020). Financial Inclusion and Poverty: A Tale of Forty-Five Thousand Households. Applied Economics, 52(16), 1777–1788. https://doi.org/10.1080/00036846.2019.1678732.
Dawood, T. C., Pratama, H., Masbar, R., & Effendi, R. (2019). Does Financial Inclusion Alleviate Household Poverty? Empirical Evidence From Indonesia. Economics and Sociology, 12(2), 235–252.
Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2020). The Global Findex Database 2017: Measuring Financial Inclusion and Opportunities to Expand Access to and Use of Financial Services. The World Bank Economic Review, 34(Supplement_1), S2–S8. https://doi.org/10.1093/WBER/LHZ013.
Ettman, C. K., Cohen, G. H., Vivier, P. M., & Galea, S. (2021). Savings, Home Ownership, and Depression in Low-income US Adults. Social Psychiatry and Psychiatric Epidemiology, 56(7), 1211–1219. https://doi.org/10.1007/S00127-020-01973-Y.
Ford, K. J., & Robitaille, A. (2023). How Sweet is Your Love? Disentangling the Role of Marital Status and Quality on Average Glycemic Levels Among Adults 50 Years and Older in the English Longitudinal Study of Ageing. BMJ Open Diabetes Research and Care, 11(1), e003080. https://doi.org/10.1136/BMJDRC-2022-003080.
Greene, W. H. (2003). Econometric Analysis. New Delhi: Pearson Education India.
Guan, N., Guariglia, A., Moore, P., Xu, F., & Al-Janabi, H. (2022). Financial Stress and Depression in Adults: A Systematic Review. PLoS ONE, 17(2).
Gyasi, R. M., Adam, A. M., & Phillips, D. R. (2019). Financial Inclusion, Health-Seeking Behavior, and Health Outcomes Among Older Adults in Ghana. Research on Aging, 41(8), 794–820. https://doi.org/10.1177/0164027519846604.
Gyasi, R. M., Frimpong, S., Amoako, G. K., & Adam, A. M. (2021). Financial Inclusion and Physical Health Functioning Among Aging Adults in the Sub-Saharan African Context: Exploring Social Networks and Gender Roles. PLoS ONE, 16(6), 1–15. https://doi.org/10.1371/journal.pone.0252007.
Han, S. H., Kim, K., & Burr, J. A. (2021). Activity Limitations and Depressive Symptoms Among Older Couples: The Moderating Role of Spousal Care. The Journals of Gerontology: Series B, 76(2), 360–369. https://doi.org/10.1093/GERONB/GBZ161.
Hosmer, D. W., Stanley Lemeshow, & Rodney X. Sturdivant. (2013). Applied Logistic Regression. New Jersey: Wiley & Sons.
Huang, R., Ghose, B., & Tang, S. (2020). Effect of Financial Stress on Self-Reported Health and Quality of Life Among Older Adults in Five Developing Countries: A Cross Sectional Analysis of WHO-SAGE Survey. BMC Geriatrics, 20(1), 1–12.
Immurana, M., Iddrisu, A.-A., Boachie, M. K., & Dalaba, M. A. (2021). Financial Inclusion and Population Health in Africa. Journal of Sustainable Finance & Investment, 1–16. https://doi.org/10.1080/20430795.2021.1953929.
Juanita, J., Nurhasanah, N., Jufrizal, J., & Febriana, D. (2022). Health Related Quality of Life of Indonesian Older Adults Living in Community. Enfermería Clínica, 32, S71–S75. https://doi.org/10.1016/J.ENFCLI.2022.03.022.
Li, Y.-P., Huang, H.-W., & Yang, Y.-C. (2022). The Association between Financial Activities and Self-Rated Health in Middle-Aged and Older Adults. Review of Pacific Basin Financial Markets and Policies, 25(04), 2250028. https://doi.org/10.1142/S021909152250028X.
Liu, H., Zhang, Z., Choi, S. W., & Langa, K. M. (2020). Marital Status and Dementia: Evidence from the Health and Retirement Study. The Journals of Gerontology Series B: Psychological Sciences and Social Sciences, 75(8), 1783-1795. https://doi.org/10.1093/GERONB/GBZ087.
Ma, X., & Oshio, T. (2020). The Impact of Social Insurance on Health Among Middle-Aged and Older Adults in Rural China: a Longitudinal Study Using a Three-Wave Nationwide survey. BMC Public Health, 20(1), 1–9. https://doi.org/10.1186/S12889-020-09945-2/TABLES/5.
Malik, M. A., Singh, S. P., Jyoti, J., & Pattanaik, F. (2022). Work Stress, Health and Wellbeing: Evidence from the Older Adults Labor Market in India. Humanities and Social Sciences Communications 2022, 9(1), 1–8. https://doi.org/10.1057/s41599-022-01192-7.
McCracken, K., & Phillips, D. R. (2017). Global Health : an Introduction to Current and Future Trends. London: Routledge.
Mialou, A., Amidzic, G., & Massara., A. (2017). Assessing Countries’ Financial Inclusion Standing — A New Composite Index. Journal of Banking and Financial Economics, 8(2), 105–126.
Michael McWilliams, J. (2009). Health Consequences of Uninsurance among Adults in the United States: Recent Evidence and Implications. The Milbank Quarterly, 87(2), 443-450. https://doi.org/10.1111/J.1468-0009.2009.00564.X.
Mooventhan, A., & Nivethitha, L. (2017). Evidence based Effects of Yoga Practice on Various Health Related Problems of Elderly People: A Review. Journal of Bodywork and Movement Therapies, 21(4), 1028–1032. https://doi.org/10.1016/J.JBMT.2017.01.004.
Morrow-Howell, N., & Sherraden, M. S. (2014). Financial Capability and Asset Holding in Later Life: A Life Course Perspective. Northamptonshire: Oxford University Press.
Murendo, C., Murenje, G., Chivenge, P. P., & Mtetwa, R. (2021). Financial Inclusion, Nutrition and Socio-Economic Status Among Rural Households in Guruve and Mount Darwin Districts, Zimbabwe. Journal of International Development, 33(1), 86–108. https://doi.org/10.1002/JID.3513.
Ofosu-Mensah Ababio, J., Attah-Botchwey, E., Osei-Assibey, E., & Barnor, C. (2021). Financial Inclusion and Human Development in Frontier Countries. International Journal of Finance & Economics, 26(1), 42–59. https://doi.org/10.1002/IJFE.1775
Paterson, D. H., & Warburton, D. E. R. (2010). Physical activity and Functional Limitations in Older Adults: A Systematic Review Related to Canada’s Physical Activity Guidelines. International Journal of Behavioral Nutrition and Physical Activity, 7(1), 1–22. https://doi.org/10.1186/1479-5868-7-38/FIGURES/4.
Pengpid, S., & Peltzer, K. (2018). Hand Grip Strength and Its Sociodemographic and Health Correlates among Older Adult Men and Women (50 Years and Older) in Indonesia. Current Gerontology and Geriatrics Research, 2018, 1–8. https://doi.org/10.1155/2018/3265041.
Prazeres, F., & Santiago, L. (2015). Prevalence of Multimorbidity in the Adult Population Attending Primary Care in Portugal: a Cross-Sectional Study. BMJ Open, 5(9), e009287. https://doi.org/10.1136/BMJOPEN-2015-009287.
Raghupathi, V., & Raghupathi, W. (2020). The Influence of Education on Health: An Empirical Assessment of OECD Countries for the Period 1995-2015. Archives of Public Health, 78(1), 1–18. https://doi.org/10.1186/S13690-020-00402-5.
Ramos-Jimenez, A., Hernandez-Torres, R., Wall-Medrano, A., Munoz-Daw, M., Torres Duran, P., & Juarez-Oropeza, M. (2009). Cardiovascular and Metabolic Effects of Intensive Hatha Yoga training in Middle-Aged and Older Women from Northern Mexico. International journal of yoga, 2(2), 49-60.
Robards, J., Evandrou, M., Falkingham, J., & Vlachantoni, A. (2012). Marital Status, Health and Mortality. Maturitas, 73(4), 295-300.
Santoni, G., Angleman, S., Welmer, A. K., Mangialasche, F., Marengoni, A., & Fratiglioni, L. (2015). Age-Related Variation in Health Status after Age 60. PLOS ONE, 10(3), e0120077. https://doi.org/10.1371/JOURNAL.PONE.0120077.
Staudinger, U. M., Finkelstein, R., Calvo, E., & Sivaramakrishnan, K. (2016). A Global View on the Effects of Work on Health in Later Life. The Gerontologist, 56(Suppl_2), S281–S292. https://doi.org/10.1093/GERONT/GNW032.
Stoeckel, K. J., & Litwin, H. (2016). The Impact of Social Networks on the Relationship Between Functional Impairment and Depressive Symptoms in Older Adults. International Psychogeriatrics, 28(1), 39–47. https://doi.org/10.1017/S1041610215000538
Sutinah, & Maulani. (2022). Hubungan Pendidikan, Jenis Kelamin dan Status Perkawinan Dengan Depresi Pada Lansia. Jurnal Endurance, 2(2), 209–216.
Takechi, H., Tsuzuki, A., Matsumoto, K., Fukui, A., Kawakita, H., Yoshino, H., & Kanada, Y. (2022). Differences in the Frequency of Subjective Geriatric Complaints Along with Aging and Their Associations with Physical Function, Multimorbidity, and Mood: A Cross-sectional Study. PLoS ONE, 17(2), e0263889. https://doi.org/10.1371/JOURNAL.PONE.0263889.
Tan, V., Chen, C., & Merchant, R. A. (2022). Association of Social Determinants of Health with Frailty, Cognitive Impairment, and Self-rated Health Among Older Adults. PLOS ONE, 17(11), e0277290. https://doi.org/10.1371/JOURNAL.PONE.0277290.
Tang, B., Li, Z., Hu, S., & Xiong, J. (2022). Economic Implications of Health Care Burden for Elderly Population. Inquiry: A Journal of Medical Care Organization, Provision and Financing, 59, 00469580221121511. https://doi.org/10.1177/00469580221121511.
Tomás, M. T., Galán-Mercant, A., Carnero, E. A., & Fernandes, B. (2017). Functional Capacity and Levels of Physical Activity in Aging: A 3-year Follow-up. Frontiers in Medicine, 4, 302281. https://doi.org/10.3389/FMED.2017.00244/BIBTEX.
United Nations. (2020). World Population Ageing 2020: Highlights. Washington D.C: United Nations.
United Nations. (2015). World Population Ageing 2015 - Highlights. In Demographic Research Monographs. Washington DC: United Nations.
Van Blijswijk, S. C. E., Chan, O. Y. A., Van Houwelingen, A. H., Gussekloo, J., Den Elzen, W. P. J., & Blom, J. W. (2015). Self-Reported Hindering Health Complaints of Community-Dwelling Older Persons: A Cross-Sectional Study. PLOS ONE, 10(11), e0142416. https://doi.org/10.1371/JOURNAL.PONE.0142416.
World Bank. (2020). Financial Inclusion: Overview. Washington DC: World Bank.
Xiao, W., & Tao, R. (2022). Financial Inclusion and Its Impact on Health: Empirical Evidence From Asia. Frontiers in Public Health, 10, 948964. https://doi.org/10.3389/FPUBH.2022.948964.
Yah, N. C. (2020). The Political Economy of Financial Reforms in Cameroon. Jurnal Ekonomi dan Studi Pembangunan, 12(2), 127–142.
Zajacova, A., & Lawrence, E. M. (2018). The Relationship between Education and Health: Reducing Disparities Through a Contextual Approach. Annual review of public health, 39, 273-280. https://doi.org/10.1146/ANNUREV-PUBLHEALTH-031816-044628.
Zhang, J., Xiao, S., Shi, L., Xue, Y., Zheng, X., Dong, F., Xue, B., & Zhang, C. (2022). Differences in Health-Related Quality of Life and Its Associated Factors Among Older Adults in Urban and Rural Areas. Risk Management and Healthcare Policy, 15, 1447-1460.
Zhang, Q., & Posso, A. (2019). Thinking Inside the Box: A Closer Look at Financial Inclusion and Household Income. The Journal of Development Studies, 55(7), 1616–1631. https://doi.org/10.1080/00220388.2017.1380798.
Zins, A., & Weill, L. (2016). The Determinants of Financial Inclusion in Africa. Review of Development Finance, 6(1), 46–57. https://doi.org/10.1016/J.RDF.2016.05.001.
DOI: 10.15408/sjie.v12i2.32001
Refbacks
- There are currently no refbacks.
