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June 2, 20260 citationsOpen Access

Conceptualising Life Transition to Economic Prosperity: A Digital Capability Transition Perspective on Socioeconomic Status, Digital Skills, and Financial Literacy

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FOFolorunso Obayemi Temitope Obasuyi

Key Points

  • The aim is to explore how digital skills and financial literacy impact economic prosperity through socioeconomic status.
  • Developed a conceptual framework for analysis using Structural Equation Modeling (SEM).
  • Introduced the Digital Capability Transition Theory (DCTT) to explain resource transformation into economic outcomes.
  • Examined the interplay between structural inequality, educational attainment, and gender in economic mobility.
  • Digital skills and financial literacy are significant predictors of economic prosperity.
  • SES directly influences economic prosperity through available digital and financial capabilities.
  • The framework underscores the importance of addressing educational and gender disparities to enhance economic mobility.

Abstract

Economic prosperity in low-income societies increasingly depends on individuals' ability to transform social resources into productive capabilities. Despite improvements in educational access, structural inequality continues to constrain economic mobility in many developing economies. This paper conceptualises the relationship between socioeconomic status (SES), digital skills, financial literacy, and economic prosperity within a capability-development perspective. The article proposes that digital skills and financial literacy operate both as direct predictors and as mediating mechanisms through which SES influences economic prosperity. The study advances a testable conceptual framework suitable for Structural Equation Modeling (SEM). The article further develops a new theoretical proposition – the Digital Capability Transition Theory (DCTT) – which explains how structural resources are transformed into sustainable economic outcomes through digital and financial capability acquisition. The paper argues that the transition from socioeconomic resources to economic prosperity is conditioned not only by digital and financial capabilities but also by educational attainment and gender-based structural inequalities. The framework offers a practical foundation for future empirical investigation and policy development in low-income societies.

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Folorunso Obayemi Temitope Obasuyi (2026) studied this question.

synapsesocial.com/papers/6a1e732830b38c64201b66cehttps://doi.org/10.5281/zenodo.20474048
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