Financial literacy, behavioral traits, and ePayment adoption and usage in Japan

Long, Trinh Quang; Morgan, Peter J.; Yoshino, Naoyuki

doi:10.1186/s40854-023-00504-3

Financial Innovation

Table 4 Financial literacy, behavioral traits and ePayment adoption: IV estimation

From: Financial literacy, behavioral traits, and ePayment adoption and usage in Japan

	First stage estimation	Using e-money	Using mobile payment apps	Using either e-money or mobile payment apps
	First stage estimation	(1)	(2)	(3)
Average financial literacy	0.097***
Average financial literacy	[0.008]
Awareness of change in adulthood age	0.618***
Awareness of change in adulthood age	[0.014]
Financial literacy		0.108***	0.031***	0.117***
Financial literacy		[0.012]	[0.006]	[0.012]
Risk aversion	− 0.234***	− 0.015*	− 0.029***	− 0.022***
Risk aversion	[0.012]	[0.008]	[0.005]	[0.008]
Herd behavior	− 0.183***	0.014*	0.021***	0.020**
Herd behavior	[0.014]	[0.008]	[0.005]	[0.009]
Limited acceptance (at stores)	0.132***	− 0.017**	− 0.013***	− 0.017**
Limited acceptance (at stores)	[0.012]	[0.008]	[0.004]	[0.008]
Long time for settlement	− 0.171***	− 0.007	− 0.009	− 0.006
Long time for settlement	[0.018]	[0.011]	[0.006]	[0.011]
Private information not adequately secure	0.228***	− 0.056***	− 0.065***	− 0.073***
Private information not adequately secure	[0.012]	[0.009]	[0.004]	[0.009]
Lack of tools to prevent overuse	0.069***	− 0.042***	− 0.021***	− 0.045***
Lack of tools to prevent overuse	[0.015]	[0.010]	[0.005]	[0.010]
Fully satisfied with cash	− 0.219***	− 0.064***	− 0.037***	− 0.076***
Fully satisfied with cash	[0.015]	[0.009]	[0.005]	[0.009]
Male	0.062***	− 0.048***	0.019***	− 0.042***
Male	[0.013]	[0.008]	[0.004]	[0.008]
Age group (reference group: ≤ 30 years old)
30–40 years old	− 0.034	0.032***	− 0.002	0.024**
30–40 years old	[0.025]	[0.012]	[0.008]	[0.012]
40–50 years old	− 0.042	0.035***	− 0.035***	0.016
40–50 years old	[0.031]	[0.012]	[0.007]	[0.012]
50–60 years old	− 0.052	0.048***	− 0.056***	0.019
50–60 years old	[0.040]	[0.013]	[0.008]	[0.013]
60–70 years old	− 0.058	0.012	− 0.073***	− 0.018
60–70 years old	[0.046]	[0.013]	[0.008]	[0.013]
≥ 70 years old	− 0.065	− 0.056***	− 0.086***	− 0.091***
≥ 70 years old	[0.048]	[0.014]	[0.008]	[0.014]
Education (reference group: primary and junior high school)
High school	0.229***	− 0.021	− 0.005	− 0.019
High school	[0.029]	[0.016]	[0.008]	[0.017]
Specialized college	0.214***	− 0.002	− 0.013	− 0.004
Specialized college	[0.031]	[0.018]	[0.009]	[0.018]
Junior college/technical college	0.305***	0.003	− 0.009	0.001
Junior college/technical college	[0.032]	[0.018]	[0.009]	[0.019]
University	0.487***	0.012	− 0.013	0.006
University	[0.029]	[0.017]	[0.009]	[0.018]
Graduate school	0.664***	0.040*	− 0.013	0.036
Graduate school	[0.038]	[0.024]	[0.014]	[0.024]
Income (JPY) (reference group: no income)
< 2.5 ml	0.188***	0.054***	0.016*	0.059***
< 2.5 ml	[0.032]	[0.017]	[0.008]	[0.017]
≥ 2.5 ml and < 5 ml	0.280***	0.053***	0.014	0.060***
≥ 2.5 ml and < 5 ml	[0.032]	[0.017]	[0.009]	[0.018]
≥ 5 ml and < 7.5 ml	0.372***	0.063***	0.018*	0.068***
≥ 5 ml and < 7.5 ml	[0.034]	[0.019]	[0.009]	[0.019]
≥ 7.5 ml and < 10 ml	0.425***	0.068***	0.027**	0.078***
≥ 7.5 ml and < 10 ml	[0.035]	[0.020]	[0.010]	[0.020]
≥ 10 ml and < 15 ml	0.414***	0.088***	0.042***	0.094***
≥ 10 ml and < 15 ml	[0.038]	[0.022]	[0.012]	[0.022]
≥ 15 ml	0.354***	0.109***	0.057***	0.118***
≥ 15 ml	[0.050]	[0.028]	[0.017]	[0.028]
Don't report income	0.000	0.045***	0.020**	0.050***
Don't report income	[0.032]	[0.016]	[0.008]	[0.017]
Occupation dummies	Yes	Yes	Yes	Yes
Frequency of news acquired dummies	Yes	Yes	Yes	Yes
Prefectural dummies	Yes	Yes	Yes	Yes
Intercept	− 2.128***	0.312***	0.113***	0.352***
Intercept	[0.094]	[0.030]	[0.016]	[0.031]
Anderson canon. corr. LM statistic		1653.865	1653.865	1653.865
Cragg–Donald Wald F statistic		1258.159	1258.159	1258.159
Sargan statistics (p-value)		0.3196	0.3804	0.7757
N	24,516	24,516	24,516	24,516

*, ** and *** indicate significance at the 10%, 5%, and 1% levels, respectively. Standard errors are in brackets

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