Growth-mindset financial education and labor supply of low-income women: An RCT evidence from rural China

Abstract

This study examines the potential of growth-mindset financial education to empower low-income married women and increase their labor force participation. In contrast to traditional financial literacy programs, which focus on outcomes that concerns managing existing resources, our approach targets maximizing income opportunities outcomes alongside financial knowledge interpretation. We conducted a randomized experiment involving 680 rural married women in a poverty county in China to test the effectiveness of income growth oriented financial education. The results show that women who received this education had 14% higher labor supply participation rate and 1.17 times higher frequency of seeking job information compared to the control group through increased self-efficacy and confidence in pursuing income-generating opportunities. This study offers a novel perspective on how financial education programs can improve financial conditions of underprivileged populations.