The Impact Of Digital Inclusive Finance On Household Income

The family income will directly determine the living standard of residents,and the difference of family income changes between different groups will also affect the realization of the goal of common prosperity.The concept of digital inclusive finance,which is based on modern digital technology and traditional inclusive finance concept,has developed rapidly in recent years.It is of great practical significance to study whether digital inclusive finance can truly achieve "inclusiveness" and whether it can help increase household income levels and narrow the income gap among residents.More importantly,studying the channels through which digital inclusive finance mainly affects household income,and the differences between different cities and families in this effect,will help to grasp the focus of the next step,so as to better play the role of digital inclusive finance and promote inclusive growth of the overall economy.In view of the above problems,this paper has carried out the following research:First of all,this paper summarizes the existing literature on digital inclusive finance,household income and residents’ income gap.Based on the research experience and inadequacy of the existing literature,this paper puts forward the research focus of this paper.On the basis of financial exclusion theory,financial inclusion theory,dual economic structure theory and digital divide theory,from the impact of digital inclusive finance on household income and its sub items The mechanism of promoting family income increase and the heterogeneity of promoting family income increase are analyzed concretely,and the research hypothesis of this paper is put forward.In the empirical part,the combined data of China Family Tracking Survey(CFPS)database and Peking University Digital Inclusive Finance Index are used to verify the income increasing effect,mechanism and heterogeneity of digital inclusive finance.Finally,policy recommendations are put forward.The main conclusions of this empirical study are as follows:(1)In terms of overall effect.The development of digital inclusive finance can significantly increase household income,but its impact is obviously different among the income sub items of households.In general,digital inclusive finance plays an income increasing role mainly by increasing wage income.At the same time,the development of digital inclusive finance is also conducive to improving the private net income of families.(2)In terms of the mechanism of action.The development of digital inclusive finance can improve the financial participation level of families,and play a part of intermediary effect in the process of promoting family income.In addition,the development of digital inclusive finance is also conducive to promoting the transformation of the nature of residents’ work from traditional agriculture to other industries.In family entrepreneurship,the development of digital inclusive finance can not only improve the probability of family entrepreneurship,but also reduce the probability of family entrepreneurship failure.(3)In terms of urban heterogeneity.The income increase effect of digital inclusive finance has a single threshold effect among cities with different digital bases.In cities with higher digital bases,its household income increase effect is more obvious.(4)In terms of family heterogeneity.On the whole,digital inclusive finance has a greater effect on the income of low-income groups,which is conducive to narrowing the income gap.The research results further divided into urban and rural areas show that digital inclusive finance has the most obvious effect on the income of low-income families in urban areas,while it has no significant impact on the income of high-income families in rural areas.The research innovation of this paper is mainly reflected in the following points:(1)the innovation of the research object.The existing researches on digital inclusive finance and income are mainly concentrated at the provincial or urban level,and few are based on household level data.(2)Innovation of research perspective.Unlike the existing studies,which mostly study the difference of income increase effect from the perspective of urban-rural income gap within cities,this paper studies the heterogeneity of income increase effect from the perspective of cities with different digital bases and families with different income levels.(3)Innovation of research content.This paper studies whether digital inclusive finance can improve the probability of family entrepreneurship,and also studies whether it can help curb entrepreneurial failure.In addition,based on urban statistical data,the paper uses principal component analysis and panel threshold model to test whether there is a digital divide effect in terms of income increase between cities.(4)Innovation of research methods.When studying the heterogeneity of digital inclusive finance development on income increase of households at different income levels,we use the advantages of combining data at the household and city levels to divide the initial median income of samples in each city into high-income households,and then summarize the classified samples in each city into overall high-income groups for heterogeneity research,which is helpful to alleviate the endogenous problem to a certain extent.