Abstract
Sub-Saharan African (SSA) countries are struggling as they have a lower level of human capital than developed countries. These economies are also trying to develop their financial sector with improved products and services. The main cause of their slow development in this region is income disparity. In view of this potential problem, this study examines the impact of financial inclusion and income inequality on human capital in SSA countries. To test this, we use panel data from 36 SSA from 2004 to 2019. Controlling for other economic indicators, we find that a high level of financial inclusion and a reduction in income inequality improve human capital. Then, we test this association separately for the dimension of financial inclusion. Afterward, our study uses the GMM technique to address endogeneity concerns. Additional tests confirm that our results are robust when SSA economies have a high level of education. Copyright (c) 2022 Borsa Istanbul Anonim S, irketi. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).