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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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