Financial inclusion and migrant workers’ entrepreneurship: Empirical evidence from rural revitalization in China

As part of the rural revitalization strategy, encouraging skilled migrant workers to return and start businesses serves as a key driver of both talent development and industrial rejuvenation. Using data from the 2012, 2014, 2016, and 2018 China Labor Force Dynamics Survey (CLDS) and focusing on the individual experiences of migrant workers, this paper employs a Difference-In-Differences (DID) model to assess the impact, underlying mechanisms, and varying effects of inclusive financial policies on the propensity of migrant workers to return home and launch entrepreneurial ventures. The findings indicate that these policies significantly stimulate the entrepreneurial decisions of migrant workers and expand the scale of their enterprises. Notably, the positive effect is largely driven by improved access to credit and is particularly pronounced among migrant workers in the eastern and central regions, as well as those with robust social networks. Furthermore, the presence of a dependable legal framework and a well-developed market system emerges as essential conditions for financial inclusion to effectively promote the return and entrepreneurial activities of migrant workers.