Mechanisms of The Impact of Fintech Development On Residents' Income: A Causal Inference Model

This research examines how the development of financial technology (FinTech) is affecting families' income in China, a nation that has multiplied. To measure the detrimental impact of FinTech on families' earnings, investigators collected data from the Peking University Digital Financial Inclusion Index of China and the 2018 China Family Panel Surveys. To measure the detrimental effects of FinTech, the authors adopted the Fixed Effects (FE) double-fixed model. After correcting several socio-economic factors such as education, employment status, and knowledge of digital technologies, the findings from the survey indicated that FinTech has a positive effect value of 0.178 (p<0.01), signifying it improves the annual income of households. Dissecting the demography, the rural areas show a more substantial impact (β = 0.253, p < 0.01) compared to urban areas (β = 0.198, p < 0.01). Also, the high-income individuals benefit more from fintech advancements (β = 0.249, p < 0.01) than their low-income counterparts (β = 0.182, p < 0.01). The anlaysis was further confirmed for consistency using robustness analysis using different measures and modeling approaches.