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Does Fintech Narrow the Gender Wage Gap? Evidence from China

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  • Qing Guo
  • Siyu Chen
  • Xiangquan Zeng

Abstract

Information and communication technology promotes the rapid development of fintech, which has a far‐reaching impact on wage distribution in China. Using data from the Chinese General Social Survey and the Index of Digital Financial Inclusion, this study examines the impact of fintech on the gender wage gap. We find that fintech (i) narrows the gender wage gap; (ii) reduces capital constraints and operating costs, thereby promoting female entrepreneurship, driving more women into employment, and enabling women to increase their wages and bargaining power within the household; and (iii) positively impacts the wages of women (and men) who have lower family economic status, and helps women (but not men) counter the risk of decline in wages caused by childbearing and caring under the two‐child policy. These findings have important policy implications and provide evidence of women's improving economic conditions leading to a reduced gender wage gap.

Suggested Citation

  • Qing Guo & Siyu Chen & Xiangquan Zeng, 2021. "Does Fintech Narrow the Gender Wage Gap? Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(4), pages 142-166, July.
    • Handle: RePEc:bla:chinae:v:29:y:2021:i:4:p:142-166
    DOI: 10.1111/cwe.12382
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    References listed on IDEAS

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    Cited by:

    1. Lucas A. Mariani & Jose Renato Haas Ornelas & Bernardo Ricca, 2023. "Banks’ Physical Footprint and Financial Technology Adoption," Working Papers Series 576, Central Bank of Brazil, Research Department.
    2. Yanna He & Muzaffarjon Ahunov, 2022. "Financial Literacy: The Case of China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(5), pages 75-101, September.
    3. Tobias Berg & Andreas Fuster & Manju Puri, 2022. "FinTech Lending," Annual Review of Financial Economics, Annual Reviews, vol. 14(1), pages 187-207, November.
    4. Orkun Saka & Barry Eichengreen & Cevat Giray Aksoy, 2022. "Epidemic Exposure, Financial Technology, and the Digital Divide," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 54(7), pages 1913-1940, October.
    5. Auer, Raphael & Tercero-Lucas, David, 2022. "Distrust or speculation? The socioeconomic drivers of U.S. cryptocurrency investments," Journal of Financial Stability, Elsevier, vol. 62(C).
    6. Johannes Treu, 2023. "The Chance of FinTech to be a New General-Purpose Technology," International Business Research, Canadian Center of Science and Education, vol. 16(11), pages 1-22, November.
    7. Treu, Johannes, 2023. "Finanzielle Allgemeinbildung, Finanzielle Inklusion, FinTech und SDG: Ein holistischer Rahmen," IU Discussion Papers - Business & Management 2 (April 2023), IU International University of Applied Sciences.
    8. Treu, Johannes, 2022. "FinTech, General Purpose Technology und Wohlfahrt," IU Discussion Papers - Business & Management 5 (Juni 2022), IU International University of Applied Sciences.
    9. Orkun Saka & Barry Eichengreen & Cevat Giray Aksoy, 2022. "Epidemic Exposure, Financial Technology, and the Digital Divide," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 54(7), pages 1913-1940, October.
    10. Peisen LIU & Shiqi Chen & Yufeng XIA, 2023. "The Effect of Bank Competition and Rural Banks on Wages: Evidence from Agricultural Firms," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 5-24, December.
    11. repec:zbw:bofitp:2021_013 is not listed on IDEAS
    12. Dyah Titis Kusuma Wardani & Navi'ah Khusniati & Susilo Nur Aji Cokro Darsono, 2023. "Sociodemographic Effects on Financial Inclusion: Implications from Online Transaction in Developing-8 Countriesfrom Online Transaction in Developing-8 Countries Abstract: The world has reached the ind," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 69, pages 67-86, Juni.
    13. Mariani, Lucas A. & Haas Ornelas, José Renato & Ricca, Bernardo, 2023. "Banks’ Physical Footprint and Financial Technology Adoption," IDB Publications (Working Papers) 12812, Inter-American Development Bank.
    14. MA, Xinxin & CHENG, Jie, 2023. "The Impact of Trade Unions on the Gender Wage Gap : Evidence from China," Discussion Paper Series 752, Institute of Economic Research, Hitotsubashi University.

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