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Can improvements in life satisfaction promote family fertility? An analysis of the mechanisms and heterogeneity of financial literacy effects

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  • Zheng, Fengming
  • Tang, Yu
  • Jin, Hao

Abstract

This study constructs an econometric model based on panel data from the China Household Finance Survey (CHFS) for the years 2017, 2019, 2021, and 2023 to systematically examine the pathways through which life satisfaction influences household fertility. It further offers an in-depth analysis of the moderating role of financial literacy within this relationship. Empirical results reveal that life satisfaction exerts a significant positive driving effect on household fertility, with the strength of this association being moderated by the level of household financial literacy. Additionally, the impact of life satisfaction on household fertility exhibits marked regional heterogeneity. Comparative analysis between urban and rural areas shows that the promoting effect of life satisfaction on household fertility differs significantly within the urban-rural dual structure, with the influence being notably stronger among urban residents than rural households.

Suggested Citation

  • Zheng, Fengming & Tang, Yu & Jin, Hao, 2025. "Can improvements in life satisfaction promote family fertility? An analysis of the mechanisms and heterogeneity of financial literacy effects," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s154461232501431x
    DOI: 10.1016/j.frl.2025.108176
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    References listed on IDEAS

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