Does digital financial inclusion benefit the low-wage workers and reduce inequality? Evidence from China general social survey

Chenlu Hao, Wenyi Lv and Leng Yu

Applied Economics Letters, 2024, vol. 31, issue 21, 2289-2299

Abstract: This study re-analyzes the relationship between digital financial inclusion and the wages of low-wage workers in China using the conditional quantile and quantile selection model. The study finds that after correcting for sample selection bias, digital financial inclusion significantly increases the wage income of low-wage workers and reduces the rural-urban wage gap. These effects diminish as the wage level rises to the median wage, and there are three potential mechanisms.

Date: 2024
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DOI: 10.1080/13504851.2023.2226905

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