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Thinking Inside the Box: A Closer Look at Financial Inclusion and Household Income

Quanda Zhang () and Alberto Posso ()

Journal of Development Studies, 2019, vol. 55, issue 7, 1616-1631

Abstract: Using national representative household finance survey data covering more than 6200 Chinese households, we first construct a new multidimensional indicator for financial inclusion. Then we examine the effect of financial inclusion on household income. Our results elicit several findings. First, financial inclusion has a strong positive effect on household income. This effect can be found across all households with different levels of income. Second, low-income households are found to benefit more from financial inclusion than high and mid-level income ones. We argue that, in this sense, financial inclusion helps reduce income inequality.

Date: 2019
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Citations: View citations in EconPapers (52)

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DOI: 10.1080/00220388.2017.1380798

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