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

Year: 2017

Type: article

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.

Source: The Journal of Development Studies

DOI: 10.1080/00220388.2017.1380798

Authors: Quanda Zhang, Alberto Posso

Institution: RMIT University

Language: English

Topic: Microfinance and Financial Inclusion

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: No poverty, Reduced inequalities, Decent work and economic growth

Open Access status: green

OpenAlex ID: W2761512222

FWCI: 8.569

Cites: 37

Cited by: 225

Related to: 10