Research on the Impact of Digital Inclusive Finance and Rural Household Human Capital Investment on Urban-rural Income Gap

Abstract

The high-quality development of an economy and society is reflected in the sustained growth of the economic aggregate and in the fruits of development being shared by the majority of residents. Therefore, a reasonable income distribution pattern is an important guarantee for sustainable economic development. However, the excessively high urban-rural income gap has become a characteristic fact in China's economy and society. In order to curb the continuous expansion of the urban-rural income gap, our country has clearly pointed out the path of " socialist rural revitalization with Chinese characteristics " . Against this background, it is important to explore the yet-to-be-clarified impact of the human capital investment of Chinese farmers on the urban-rural income gap. At the same time, the emergence of digital inclusive finance provides a new perspective for finance to help converge the urban-rural income gap. Digital inclusive finance mainly targets disadvantaged groups excluded by traditional finance. Rural residents with low incomes are naturally among its targets. Converging the income gap between urban and rural areas should also be one of the responsibilities of digital inclusive finance. This article first reviews the theories and literature related to digital inclusive finance and the urban-rural income gap. By summarizing the reasons for the formation of the urban-rural income gap and the conditions for its convergence, it analyzes the important role of finance in it and the limitations of traditional financial development. , and further deduced the impact of the development of digital inclusive finance on the urban-rural income gap. It is also recognized through public data that educational human capital and migrant human capital have greatly narrowed the urban-rural income gap in the eastern region, verifying that human capital investment has an incremental role in economic development levels and policy guidance.