Exploring Socio-Economic Determinants of Financial Literacy and the Role of Financial Literacy in Enhancing Financial Inclusion for Migrant Workers in Kerala

Abstract

This study aims to investigate the main socio-economic determinants of financial literacy among migrant workers and the impact of financial literacy on the financial inclusion of migrant workers in Kerala. For the study, the required data was collected from the migrant workers employed in construction site in Calicut district, Kerala (the highest district in Kerala in terms of population of migrant workers as per Economic review 2022). The scale reliability of financial literacy and financial inclusion was confirmed by using Cronbach alpha and Composite reliability. Gender, age, marital status, income and educational qualification are the socio-economic determinants of financial literacy considered under the study.  Statistical test of independent sample t test, One-way ANOVA and Simple linear regression was used test the hypothesis. For studying the statistical difference in financial literacy of male and female migrant workers, independent sample t-test was used, and for investigating the statistical differences in financial literacy based on age, income, marital status and educational qualification One-way ANOVA was used. Based on the result of independent sample t-test, there is statistical differences in the financial literacy among male and female migrant workers and based on the result of One-way ANOVA, there is statistical differences in the financial literacy of migrant workers based on the age group, marital status, income level and educational qualification. Based on the results of simple linear regression analysis financial literacy has a significant positive influence on the financial inclusion of migrant workers.