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Digital financial inclusion and subjective well-being – Evidence from China health and retirement longitudinal study

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  • Lei, Xiaoyan
  • Shen, Yan
  • Yang, Ling

Abstract

This study investigates the impact of digital financial inclusion (DFI) on the subjective well-being of China's older population, specifically examining the effects on depression, life satisfaction, and self-reported health status. Drawing on data from the China Health and Retirement Longitudinal Study (CHARLS), our research reveals that the advancement of DFI has a significant positive impact on reducing symptoms of depression and improving the self-reported health status of elderly individuals. Furthermore, our analysis of heterogeneity indicates that these welfare improvements are more pronounced in rural areas compared to urban areas and among the non-multidimensional poverty (non-MP) group rather than the multidimensional poverty (MP) group. Moreover, we find that the impact of DFI on depression is more immediate, while its influence on self-rated health takes longer to manifest. These findings collectively suggest that enhancing digital finance can effectively improve subjective well-being, particularly among vulnerable groups such as the elderly population, individuals facing multidimensional poverty, and those residing in rural areas. The immediate relief of depression and the gradual improvement in self-reported health highlight the policy implications of leveraging digital finance to enhance subjective well-being.

Suggested Citation

  • Lei, Xiaoyan & Shen, Yan & Yang, Ling, 2023. "Digital financial inclusion and subjective well-being – Evidence from China health and retirement longitudinal study," China Economic Review, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:chieco:v:81:y:2023:i:c:s1043951x23000986
    DOI: 10.1016/j.chieco.2023.102013
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    1. Kunkun Duan, 2026. "Digital Villages Construction and Subjective Well-being of the Elderly: Evidence from China Longitudinal Aging Social Survey," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 21(1), pages 225-244, February.
    2. Olumide O. Olaoye & Mosab I. Tabash & Ali Shaddady & Samraat Raya, 2025. "Does FinTech deepen financial inclusion in sub-Saharan Africa? Unveiling the transmission channels," Quality & Quantity: International Journal of Methodology, Springer, vol. 59(3), pages 2555-2576, June.
    3. Liu, Jing & Zhang, Nan, 2025. "Digital inclusive finance, household leverage and household consumption," Finance Research Letters, Elsevier, vol. 86(PF).
    4. Anupama S & Angan Sengupta, 2025. "FinTech and older adults: a global synthesis of enablers, barriers, and research trends for inclusive digital finance," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-29, December.
    5. Wei, Binhui & Zhao, Chunkai & Luo, Mingzhong, 2024. "Online markets, offline happiness: E-commerce development and subjective well-being in rural China," China Economic Review, Elsevier, vol. 87(C).
    6. Zheng, Xiaodong & Wang, Yinglin & Wu, Qi & Zhou, Yanran, 2024. "Digital inclusive finance and migrant wages: Evidence from over 700,000 internal migrants in China," Finance Research Letters, Elsevier, vol. 62(PA).
    7. Wang, Jianlong & Wu, Haitao & Liu, Yong & Wang, Weilong, 2024. "Health welfare in the digital era: Exploring the impact of digital trade on residents' health," Economics & Human Biology, Elsevier, vol. 54(C).
    8. Zhao, Tianrui & Zhu, Shiyou, 2025. "Digital inequality, uncertainty risk and rural residents' consumption," Finance Research Letters, Elsevier, vol. 86(PA).
    9. Yin, Xingxing & Wang, Zehao, 2025. "Digital financial inclusion and the quality of life of older adults: Evidence from China," Finance Research Letters, Elsevier, vol. 85(PC).
    10. Zhu Yan & Jing Jian Xiao & Qiong Sun, 2024. "Moving up toward sustainable development: Digital finance and income mobility," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 5742-5763, October.
    11. Wang, Shuguang & Cheng, Guangbin & Chen, Yuanhan, 2025. "Family digital competence, residents' subjective well-being, and tourism consumption levels—A study based on CFPS data," International Review of Financial Analysis, Elsevier, vol. 102(C).
    12. Sengupta, Reshmi & Rooj, Debasis, 2025. "E-Wallet adoption and health insurance uptake in India: Evidence from a copula regression analysis," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 2636-2657.
    13. R. V. Naveenan & Chee Yoong Liew & Ploypailin Kijkasiwat, 2024. "Nexus Between Financial Inclusion, Digital Inclusion and Health Outcomes: Evidence from Developing Economies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 174(1), pages 367-408, August.
    14. Bai, Hengrui & Wu, Yiming & Wang, Ruiqian, 2023. "Does digital financial inclusion lead to regional differences in trade credit financing?: A quasi-natural experiment," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1475-1489.
    15. Yang, Liuhui & Li, Ruoyi, 2025. "Government governance, family financial support, and financial well-being of the elderly: Evidence from CHARLS Data," Finance Research Letters, Elsevier, vol. 74(C).

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