Research On The Impact Of Digital Inclusive Finance On Household Income Gap

The family income gap is the fact of China’s economy and society,and the family income gap is too large,which is not conducive to the development and stability of the national economy.In 2021,China clearly stated that substantial progress should be made in achieving common prosperity for all the people,and narrowing the family income gap is the main way to achieve common prosperity.In recent years,with the large-scale development and application of digital technology,inclusive finance has been developed,and digital inclusive finance has been produced.Digital inclusive finance enables financial services to cover more extensive areas and fields,making the cost of financial services lower,more efficient and more convenient.This enables the vulnerable groups excluded by traditional financial resources to enjoy financial services,and the low-income families can naturally obtain financial services.So will digital financial inclusion have an impact on the household income gap?This paper begins with an understanding of the related concepts and theories.Secondly,the theory of financial exclusion and financial function is used to analyze the total effect,heterogeneity and indirect effect of digital inclusive finance on household income gap theoretically,and the research hypotheses are put forward.Then,the prefecture-level city data of Peking University digital inclusive finance and the family and personal data of China Family Tracking Survey(CFPS)were used to establish the structural equation model and the mediation effect model,and STATA software was used to empirically analyze the total effect,heterogeneity and indirect effect.And draw the following conclusions:The overall development of digital inclusive finance will help narrow the household income gap.(2)In the different dimensions of digital financial inclusion,the impact of digital financial inclusion on the household income gap is inconsistent.The breadth and depth of use will narrow the household income gap,while the degree of digitalization will expand.(3)In the different businesses of digital financial inclusion,the impact of digital financial inclusion on the household income gap is inconsistent.Payment and money fund operations widen the household income gap;credit has no significant impact on the household income gap;insurance and investment operations narrow the household income gap;credit has a significant widening impact on the household income gap.(4)In different regions,the impact of digital financial inclusion on the household income gap is inconsistent.The convergence effect occurred in the eastern,central and western regions,but the central region was higher than that in the western region,and the eastern region had the least effect.(5)Digital financial finance expands the household income gap through household participation in the financial market,thus weakening the role of digital financial finance in narrowing the household income gap.Finally,this paper puts forward the following suggestions: pay attention to the development of digital technology,strengthen the combination of digital technology and inclusive finance;improve the coverage of digital inclusive finance,strengthen the use of digital finance business;strengthen the expansion function of digital inclusive finance,optimize digital financial products;promote the balanced regional development,and accelerate the development of digital inclusive finance.