Study On The Impact Of Digital Inclusive Finance On The Intergenerational Income Mobility Of Chinese Residents

At present,China has entered a critical historical stage of building a moderately prosperous society and achieving the great rejuvenation of the Chinese nation.Social equity and fairness of opportunity have become the value pursuit of the whole society,and people have begun to gradually pay attention to the issue of income inequality.Previous studies have shown that the development of digital inclusive finance can break through the limitations of traditional finance and enhance the financial accessibility of disadvantaged groups,thus narrowing the income gap and promoting social equity.However,The income gap only reflects income inequality to a certain extent and is not very comprehensive..Compared with static income disparity,intergenerational income mobility as a dynamic income distribution pattern can better measure the degree of social equity and equal opportunity,And poor intergenerational income mobility may have a worse impact on social equity and harmony.Therefore,exploring the relationship between digital inclusive finance and intergenerational income mobility of Chinese residents can help improve the dynamic income distribution pattern,break the trend of social structural solidification,promote socially equitable development,and achieve the ambitious goal of common prosperity.Firstly,this paper compares the literature on digital inclusive finance and intergenerational income mobility,analyzes the influence mechanism between them and proposes hypotheses accordingly;secondly,based on the mixed cross-sectional data composed of the China Household Tracking Survey(CFPS),we construct an estimation model of intergenerational income elasticity coefficient to explore the direct impact of digital inclusive finance on intergenerational income mobility,and use intergenerational mobility of education as a mediating variable.Bootstrap mediating effect test is applied to test its mediating effect in the impact of digital inclusive finance on intergenerational income mobility;Subsequently,to clarify the differential effects of digital inclusion and intergenerational income mobility across households with different endowments,the samples are regressed in groups by region,age,urban-rural,and income class,respectively;finally,to ensure the robustness of the results,cell phone penetration and Internet penetration are selected as instrumental variables to deal with the endogeneity problem,and the sample is divided into two stages around 2014 to further test the robustness of the empirical analysis.Based on the above study,the following observations were made in our article: first,the development of digital inclusive finance can reduce the dependence of children’s income on their parents’ income and increase intergenerational income mobility,and among the three secondary indicators,the breadth of coverage and depth of use can better contribute to the improvement of intergenerational income mobility,and the degree of digitalization also has a positive effect but the effect is not significant.Second,the development of digital inclusive finance can promote intergenerational income mobility by promoting intergenerational mobility of education,in which the mediating effect accounts for about 12.26% of the total effect.Third,the impact effect between digital inclusive finance and intergenerational income mobility is significantly heterogeneous,specifically,the effect of digital inclusive finance is more significant for the northeastern region,urban residents,offspring households over 30 years old,and middle-income households.In order to promote the development of digital inclusive finance and make it better contribute to the improvement of intergenerational income mobility of Chinese residents,this paper puts forward corresponding policy recommendations: improving the institutional design of digital inclusive finance system to promote its continuous contribution to the improvement of intergenerational income mobility;making full use of digital inclusive finance to optimize the allocation of educational resources;promoting the balanced development of digital inclusive finance to enhance its effect on intergenerational income mobility in the western region;improving the financial literacy of rural residents to improve the intergenerational income mobility of disadvantaged groups.Compared with current findings,the novelties of the present study include: this paper focuses on social equity based on the intergenerational income stratum changes from a dynamic perspective,and explores the impact of digital inclusive finance on intergenerational income mobility and the transmission mechanism;at the same time,it introduces three secondary indicators of digital inclusive finance,considering the impact of the breadth of coverage,the depth of use and the degree of digitization on intergenerational income mobility;in addition,it incorporates In addition,intergenerational education mobility is included in the research framework of digital inclusive finance affecting intergenerational income mobility,and the mediating effect of intergenerational education mobility is examined.