The Impact of Digital Financial Inclusion on Residents' Income

The popularization of digital finance is conducive to promoting economic growth and increasing residents' income. This article uses 2016 and 2018 cfps data and the Peking University Financial Inclusion Index to find that when the financial inclusion index increases by one point, household income increases by 0.3%. The development of digital financial inclusion is different for different groups, urban and rural areas, and different regions. Under the same conditions, the financial inclusion index has a slightly greater impact on rural residents at 0.4%; the results of distinguishing eastern, central, and western regions show that for every one point increase in the western region's financial inclusion index, household income will increase by 0.6%. Digital financial inclusion has a greater impact on rural residents and western urban areas, indicating that the development of digital financial inclusion is also conducive to social equity. The development of digital financial inclusion is of guiding significance for narrowing the income gap.