Welcome to Francis Academic Press

The Frontiers of Society, Science and Technology, 2023, 5(16); doi: 10.25236/FSST.2023.051609.

The Impact of Financial Inclusion on Household Income: Micro Evidence for Chinese Households


Pan Tianpei

Corresponding Author:
Pan Tianpei

School of Economics and Management, Guangxi Normal University, Guilin, China


Based on the perspective of Chinese residents' digital capability and financial literacy, this paper explores the impact of inclusive finance on household income level and the proportion of property income and the specific mechanism of the impact. Moreover, the micro survey data of China Household Finance Survey (CHFS) in 2011, 2013, 2015, 2017 and 2019 are used as samples for empirical test. The results show that the development of inclusive finance promotes the increase of household income and the proportion of property income, the improvement of digital ability promotes the increase of household income, and the improvement of financial literacy promotes the increase of household property income. The mechanism test finds that digital capability enhances the promoting effect of inclusive finance development on the increase of household income, and financial literacy enhances the promoting effect of inclusive finance development on the increase of household property income. The above research further enriches the research on inclusive finance and household income, and provides some policy implications for the consolidation of poverty alleviation achievements and the expansion of the proportion of property income in total household income.


Financial Inclusion; Digital Ability; Financial Literacy; Increased Household Income; Property Income

Cite This Paper

Pan Tianpei. The Impact of Financial Inclusion on Household Income: Micro Evidence for Chinese Households. The Frontiers of Society, Science and Technology (2023) Vol. 5, Issue 16: 46-55. https://doi.org/10.25236/FSST.2023.051609.


[1] Tang Danyun, Li Jie, Wu Yu.(2023). The impact of financial literacy on household property income: a study from the perspective of common prosperity. Contemporary Finance and Economics (04),55-67.

[2] Zou Jing, Deng Xiaojun.(2022). Digital financial inclusion, financial literacy and household income poverty. Industrial Economics Review (05),70-85.

[3] Liang Bang.(2022). How does financial inclusion affect income distribution: on the mediating effect of poverty alleviation. Finance and Trade research (08),17-31.

[4] Ding Jianjun, Wan Hang.(2022). Digital inclusive finance, financial literacy and assets are relatively poor. Journal of Xiangtan University (Philosophy and Social Sciences Edition) (06),59-65.

[5] Xing Lecheng, Zhao Jian.(2019). Inclusive finance in China from a multi-dimensional perspective: conceptual sorting and theoretical framework. Journal of Tsinghua University (Philosophy and Social Sciences) (01),164-172+198.

[6] Yin Zhichao, Peng Changyan, Angela Lyons.(2019). Development and impact of household inclusive finance in China. Managing the World (02),74-87.

[7] Yang Dong, Zheng Jiaxi, Song Jiahao.(2021). Research on the impact of rural inclusive finance development on rural household income. The Rural Economy (01),104-110.

[8] Zang Dungang, Li Fanghua, Jiang Yuansheng.(2022). Digital ability and peasant income: based on the survey data of People's Livelihood development in Tibet, China. Journal of Tibet University (Social Sciences) (01),187-197+205.

[9] Goldfarb, A., Tucker, C. (2019). Digital Economics. Journal of Economic Literature (01),3-43.

[10] Muafi, M., Syafri, W., Prabowo, H., et al. (2021). Digital Entrepreneurship in Indonesia: A Human Capital Perspective. The Journal of Asian Finance, Economics and Business (03),351-359.

[11] Seo, H., Erba, J., Altschwager, D., et al. (2019). Evidence-based Digital Literacy Class for Older, Low-income African-American Adults. Journal of Applied Communication Research (02),130-152.

[12] Qiu Zeqi, Zhang Shuqin, Liu Shiding, Xu Yingkang.(2016). From digital divide to dividend difference: the perspective of Internet capital. Social Sciences in China (10),93-115+203-204.

[13] Hastings, J.S., Madrian, B.C., Skimmyhorn, W.L. (2013). Financial Literacy, Financial Education, and Economic Outcomes. Annual Review of Economics (01),347-373.

[14] Yacob, A., Weldensie, T., Francis, T., Vincent, A.B. (2017). Implications of Non-Farm Work to Vulnerability to Food Poverty-Recent Evidence from Northern Ghana. World Development (03),113-124.

[15] Yang Weiming, Su Lin, Wang Mingwei.(2020). Digital inclusive finance and urban and rural residents' income: an analysis of the mediating effect between economic growth and entrepreneurial behavior. Journal of Shanghai University of Finance and Economics (04),83-94.

[16] Liu Ziqiang, Zhang Tian.(2021). The impact of digital inclusive finance on farmers' income and its spatial spillover effect. Contemporary Economic Research (12),93-102.

[17] Zhang Lin.(2021). Digital inclusive finance, county industrial upgrading and farmers' income growth. Research on Financial and Economic Issues (06),51-59.

[18] Su Lanlan, He Xuesong, Kong Rong.(2018). The impact of financial knowledge on farmers' farmland transfer behavior: an analysis based on the moderating effect of farmland right confirmation and certification. China's Rural Economy (08),17-31.

[19] Wu Weixing, Wu Kun, Zhang Xuyang.(2018). Financial literacy and household asset portfolio effectiveness. International Finance Studies (05),66-75.

[20] Allgood, S., William, B.W. (2016). The Effects of Perceived and Actual Financial Literacy on Financial Behaviors. Economic Inquiry (01),675-697.

[21] Gan Li, Yin Zhichao, Jia Nan, Xu Shu, Ma Shuang.(2013). Analysis of household assets and housing demand in China. Research on Finance (04),1-14.

[22] Xiong Deping, Huang Qian.(2022). Digital inclusive finance, rural household entrepreneurship and multidimensional relative poverty. Discussion on Dongyue (09),38-48+191.

[23] Guo Jihui, Wang Zerong.(2022). Can the development of digital inclusive finance promote household consumption level: an empirical study based on CHFS data. Journal of Guizhou University of Finance and Economics (04),22-31.

[24] Van, R.M., Lusardi, A., Alessie, R. (2011). Financial Literacy and Stock Market Participation. Journal of Financial Economics (101),449-472.

[25] Yin Zhichao, Zhang Donghao.(2020). Financial inclusion, household poverty and vulnerability. Economics (Quarterly) (05),153-172.