Research On The Impact Of Digital Inclusive Finance On Residents’ Employment,Income And Consumption-based On The Perspective Of Inclusive Growth

Digital inclusive finance(DIF,henceforth)is a digital innovation of inclusive finance and an important aspect of China’s financial development.The development of DIF is related to the realization of China’s strategic goals of inclusive economic growth,common prosperity and high-quality growth.At present,China’s DIF has made great progress in terms of coverage,but due to the existence of digital divide and other problems,vulnerable groups still need to strengthen their use depth and digital service level,so there may be a phenomenon of "universal but not beneficial".This is an important aspect for China to achieve inclusive growth and common prosperity in the future.To explore the development path of China’s DIF to promote inclusive growth and common prosperity,we should not only have a deep understanding of the social and economic effects of DIF development,especially the improvement of target groups,but also comprehensively analyze its specific effects and role paths.Only in this way can we deeply understand the positive significance of digital inclusive financial development for economic growth and achievement distribution,and then put forward policy recommendations that are conducive to achieving common prosperity,high-quality employment and boosting domestic demand.On the basis of the existing relevant research,the paper first sorts out and summarizes the three dimensions of inclusive economic growth,namely,"participation,growth and sharing",and then examines the impact of DIF on household employment,income and consumption and whether the marginal effect on vulnerable groups is greater according to these three dimensions,focusing on the following four aspects:First,the impact of the development of DIF on the quality of residents’ employment and its mechanism,and the impact of DIF on employment from the "participation" dimension of inclusive economic growth.First,the factor analysis method is used to construct a comprehensive employment quality index that can reflect the quality of household employment.Then,the two-way fixed effect model is used to test the employment quality effect of DIF.At the same time,the impact of DIF on residents’ information concerns and social capital is evaluated to further explain how the development of DIF affects residents’ employment quality,Finally,the marginal effect of DIF development on household employment rate is tested.Second,whether the development of DIF can help to improve household consumption level,and examine the impact of DIF development on household consumption behavior from the "growth" dimension of inclusive economic growth.Specifically study whether the development of DIF can promote the improvement of household consumption level,and further explain it from the multiple perspectives of quantile regression,consumption subcategory grouping regression,liquidity constraints,financial literacy and payment convenience,and finally analyze whether the development of DIF will lead to excessive consumption of households and the heterogeneous impact on excessive consumption behavior of different age groups.Third,the impact of the development of DIF on the income gap and its mechanism,and the income distribution effect of DIF from the "sharing" dimension of inclusive economic growth.We use RIF regression model to test the marginal effect of DIF on the income gap of residents,and further elaborate the transmission path of DIF affecting the income inequality of residents from the perspective of liquidity constraints,financial literacy,employment stability and employment rate.Fourth,how does the development of DIF affect the inequality of residents’ consumption,as well as the endowment effect and structural effect of consumption gap,and further study the impact of DIF development on the "sharing" of economic achievements of Chinese residents.Because compared with income inequality,consumption inequality can more accurately measure the difference of real welfare level among residents.First,measure the residents’ consumption gap by the RIF value of logarithmic Gini coefficient of per capital household consumption,and discuss the impact and mechanism of DIF development on the overall consumption gap of residents from the perspective of improving the payment convenience and financial literacy of the inclusive groups.Finally,the RIF-OB decomposition method is used to explore the source of consumption inequality between high and low digital inclusive financial development groups.In the process of research,based on the perspective of inclusive growth,from the three dimensions of participation,growth and sharing,the impact of DIF on residents’ employment quality,consumption level,income gap and consumption inequality is investigated respectively.We selected the China Household Finance Survey(CHFS)data from the China Household Finance Survey and Research Center of Southwestern University of Finance and Economics in 2015,2017 and2019,and the digital inclusive financial index jointly prepared by the Digital Finance Research Center of Peking University and the research group of Ant Financial Services Group in 2014,2016 and 2018,using factor analysis,two-way fixed effect model,RIF regression Measuring methods such as instrumental variable regression and intermediary effect model comprehensively evaluated the impact of DIF development on micro households and its potential mechanism.The research finds that: first,the development of DIF can significantly improve the employment quality of residents.On the one hand,the development of DIF can improve the employment quality of residents by increasing their economic and financial information attention and social capital accumulation.On the other hand,the development of DIF can improve the per capital working time and per capital net income of families to improve the quality of employment.The main beneficiaries are rural residents and residents with low financial literacy.However,it should be noted that the development of DIF has reduced the employment rate of residents.Second,DIF has significantly improved household consumption.The reason is that DIF can not only increase the per capital consumption of low consumption households,but also increase food,household equipment,transportation and other expenditures to enhance household consumption;DIF can also improve household consumption by improving financial literacy,easing liquidity constraints and improving payment convenience.The main beneficiary groups are households with high school education or above,and families in rural areas and central and western regions.However,the disadvantage is that the development of DIF has induced excessive consumption of young people.Third,the development of DIF has a significant positive income distribution effect,and the main beneficiary groups are the central,low-income and high financial literacy residents.DIF can significantly improve the financial literacy of families with low material capital(or low human capital),extend the working hours of families with low financial literacy,improve the employment rate of families with low material capital,and ease the mobility constraints of families with low material capital(or low human capital),making the income increase effect of the tail population more significant,and thus narrowing the overall income gap.The development of DIF has a positive distribution effect on agricultural production and operation,investment and transfer income.The key to its role as an "income equalizer" is to enhance the depth of use of DIF.Fourth,the development of DIF helps to reduce the Gini coefficient of household consumption.The development of DIF mainly alleviates the inequality of residents’ consumption by improving the financial literacy and payment convenience of vulnerable groups.In addition,the depth of the use of DIF,especially the deepening of credit,payment and monetary fund businesses,helps to narrow the consumer gap,and the reduction of the benchmark difference is mainly reflected in food,durable goods and education expenditure.The role of digital inclusive financial development in reducing residents’ consumption gap is more significant in cities,high uncertainty,high dependency burden and families with retired people.Endowment effect is the main reason for consumption differences among different digital inclusive financial development groups.The main contributions of this study are as follows: First,a new analytical framework has been constructed,that is,from the three dimensions of inclusive growth,participation growth sharing,using more rigorous and detailed data,to investigate the employment,income and consumption effects of DIF of households and whether the marginal effect on vulnerable groups is greater.Secondly,it enriches the literature on the relationship between DIF and employment,income and consumption,and expands the perspective of analysis.The third is to analyze and demonstrate the role mechanism of DIF on the employment quality of residents from two aspects of economic and financial information attention and social capital,and analyze the differential impact of DIF on specific employment quality indicators,urban and rural areas and financial literacy.Fourth,this study found that the development of DIF can improve residents’ consumption level by improving residents’ financial literacy,and evaluated the impact of DIF on excessive consumption.Fifthly,it empirically tested the transmission mechanism of "DIF→liquidity constraints of target groups,labor supply,employment opportunities,financial literacy and other aspects of improvement greater than that of non target groups → narrowing the income gap of residents",revealing the "poverty benefit" characteristics of the development of DIF.Sixth,based on the RIF-OB decomposition method,we further explored the main factors of the inter group consumption difference of the development level of DIF,which not only enriched the relevant research on the socioeconomic effects of DIF development,but also deepened the understanding of the determinants of consumption inequality.Finally,regarding the research prospect of this paper,more innovative research and exploration can be carried out in the future in terms of the improvement of digital inclusive financial indicators,the construction of employment quality indicators,and the simultaneous evaluation of employment,income and consumption indicators in one framework.