Astudyonthe Impactof Income Uncertaintyand Social Interactionon Family Financial Vulnerabilityin China

In 2020,China’s poverty alleviation campaign achieved a comprehensive victory.After the elimination of absolute poverty,poverty alleviation work will shift from resolving absolute poverty to alleviating relative poverty.Consolidating the achievements of poverty alleviation and preventing poverty return have become the main tasks at this stage.For the relatively poor population that still exists,it is extremely easy to exhibit vulnerability characteristics under risk shocks such as uncertainty,and there is a risk of returning to poverty,which affects the results of China’s poverty alleviation efforts.In addition,the occurrence and spread of the COVID-19 at the end of 2019 has brought uncertainty to the market and triggered turbulence in the financial market.From the perspective of households,the outbreak of the epidemic has weakened the labor market,lowered the income of residents,caused frequent unemployment,increased liquidity constraints on household funds,and increased the uncertainty of household income,especially for relatively poor people with poor risk resistance ability,Easily leading to household financial vulnerability.Studying the impact of income uncertainty on household financial vulnerability can not only consolidate the achievements of poverty alleviation and provide theoretical support and policy recommendations for establishing a poverty prevention mechanism,but also understand the impact of background risks brought by uncertainty from the perspective of public emergencies on household finance,and how to improve relevant policies and regulations in the post epidemic era to reduce the impact of household financial vulnerability on China’s economy.China is a society characterized by a clearly differentiated pattern,with everyone forming a network centered around themselves and forming their own "life circle.".Social interaction is not only a sociological concept,but in recent years,more and more research has been conducted on the impact of social interaction on economic behavior.Social interaction not only affects people’s daily life,but also affects residents’ family economic behavior,and has an important impact on alleviating family financial vulnerability.Therefore,exploring the impact of social interaction on income risk and household financial vulnerability has theoretical and practical significance.In this context,this article first reviews relevant literature and theories on income uncertainty,family financial vulnerability,and social interaction,and then proposes relevant research hypotheses for empirical analysis.Using the China Household Finance Survey(CHFS)data,drawing on the construction methods of indicators in relevant literature,using Stata econometric software to conduct empirical analysis of research assumptions,and conducting heterogeneity analysis of urban and rural areas,high and low incomes.The main conclusions of this article include:(1)Income uncertainty has a significant positive impact on household financial vulnerability.(2)Social interaction has a moderating effect on the impact of income uncertainty on household financial vulnerability: social interaction can reduce the positive impact of income uncertainty on household financial vulnerability.(3)Heterogeneity analysis found that the regulatory effect of social interaction is more evident for urban households and families with higher incomes.