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Divide or dividend: How digital finance impacts educational equality

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  • Shang, Rui

Abstract

Based on panel data from 31 provinces in mainland China from 2011 to 2021, this paper empirically investigates whether and how digital finance affects educational equity. The results show that the impact of digital finance on educational equity is dynamic, showing that it initially exacerbates educational inequality and later reduces it. The impact of digital finance on educational equity shows a marginal decreasing pattern. Digital finance promotes educational equity by alleviating the credit constraints of rural residents and narrowing the urban-rural income gap. This paper adds new empirical evidence to the long-term debate on the digital divide and educational equity.

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  • Shang, Rui, 2023. "Divide or dividend: How digital finance impacts educational equality," Finance Research Letters, Elsevier, vol. 55(PA).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323002301
    DOI: 10.1016/j.frl.2023.103858
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    References listed on IDEAS

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    1. Peng, Jia-Hui & Wang, Ke-Liang & Cheng, Yun-He & Miao, Zhuang, 2024. "How does digital inclusive finance affect energy justice? Evidence from China," Finance Research Letters, Elsevier, vol. 67(PA).
    2. Jin, Seunga Venus & Ryu, Ehri, 2025. "Unraveling the dynamics of digital equality and trust in AI-empowered metaverses and AI-VR-convergence," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    3. Yang, Jing & Lu, Danning & Shi, Jianxun, 2025. "Does digital financial inclusion promote intergenerational income mobility? Evidence from China," Finance Research Letters, Elsevier, vol. 82(C).
    4. Hao, Yunping & Zhang, Bing, 2024. "The impact of digital financial usage on resident’s income inequality in China: An empirical analysis based on CHFS data," Journal of Asian Economics, Elsevier, vol. 91(C).
    5. Shan, Haiyan & Gu, Mengjie, 2024. "How does digital finance alleviate fiscal stress? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1202-1221.
    6. Mao Wu & Qianqian Zhang & Yujie He, 2026. "Inclusion or Exclusion: The Impact of Digital Finance on Intra-City Economic Inequality and Its Spatial Spillover Effect," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(1), pages 1305-1345, February.
    7. Yang, Nana & Ao, Xugao & Tu, Yongqian, 2024. "The impact of digital financial development on rural household income mobility," Finance Research Letters, Elsevier, vol. 63(C).
    8. Wang, Yang & Cai, Qiang, 2025. "Education fiscal expenditure, digital inclusive finance, and urban-rural education returns," Finance Research Letters, Elsevier, vol. 86(PG).

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