THe Impact of Digital Financial Inclusion on Local Employment RateEvidences from China

With the deep integration of digital economy and financial innovation, the degree of digital inclusive finance in a city has become a key factor affecting local employment rate. Based on various indicators at the city level from 2011 to 2023, this study constructs a two-way fixed effect model to systematically investigate the mechanism and heterogeneous impact of digital inclusive finance on local employment rate. The empirical results show that: (1) Digital inclusive finance can significantly improve local employment rate, which is mainly reflected in expanding the coverage width of digital inclusive finance, and its action path is mainly reflected in two aspects: improving the level of industrial structure and the overall industrial upgrading; (2) the heterogeneity analysis shows, digital inclusive finance has a more obvious effect on improving the local employment rate in the eastern region, based on the above conclusions, this paper puts forward the following suggestions: Firstly, in view of the significant effect of digital inclusive finance in the eastern region, it is suggested that digital finance innovation demonstration zones be established in the Yangtze River Delta and the Pearl River Delta to pilot cross-border digital currency settlement and data asset trading. Secondly, the digital skill cultivation ecology of "basic education-vocational training-lifelong learning" should be built. Thirdly, improve the digital financial service standard system, focusing on the regulation of mobile payment interface, online credit risk control model and other key links.