Digital financial inclusion and subjective well-being – Evidence from China health and retirement longitudinal study

Xiaoyan Lei, Yan Shen and Ling Yang

China Economic Review, 2023, vol. 81, issue C

Abstract: This study investigates the impact of digital financial inclusion (DFI) on the subjective well-being of China's older population, specifically examining the effects on depression, life satisfaction, and self-reported health status. Drawing on data from the China Health and Retirement Longitudinal Study (CHARLS), our research reveals that the advancement of DFI has a significant positive impact on reducing symptoms of depression and improving the self-reported health status of elderly individuals. Furthermore, our analysis of heterogeneity indicates that these welfare improvements are more pronounced in rural areas compared to urban areas and among the non-multidimensional poverty (non-MP) group rather than the multidimensional poverty (MP) group. Moreover, we find that the impact of DFI on depression is more immediate, while its influence on self-rated health takes longer to manifest. These findings collectively suggest that enhancing digital finance can effectively improve subjective well-being, particularly among vulnerable groups such as the elderly population, individuals facing multidimensional poverty, and those residing in rural areas. The immediate relief of depression and the gradual improvement in self-reported health highlight the policy implications of leveraging digital finance to enhance subjective well-being.

Keywords: Digital financial inclusion; Multidimensional poverty; Subjective well-being; Elderly (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:81:y:2023:i:c:s1043951x23000986

DOI: 10.1016/j.chieco.2023.102013

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