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Social security levels, financial openness, and resident income gap

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  • Wang, Lisha
  • Chen, Guanyujie

Abstract

Based on theoretical analysis, this article empirically studies the impact of social security levels and financial openness on the income gap among residents in 31 provincial-level administrative regions of China (excluding Hong Kong, Macau, and Taiwan) using panel data from 2010 to 2023. The study finds that: social security levels significantly reduce the income gap between urban and rural residents (IGUR); financial openness significantly reduces the IGUR; social security expenditure plays a moderating role in the relationship between financial openness and IGUR; the effect of social security levels on the IGUR demonstrates heterogeneity in areas of high and low population density; the effect of financial openness on the IGUR shows heterogeneity in areas with high and low education levels.

Suggested Citation

  • Wang, Lisha & Chen, Guanyujie, 2026. "Social security levels, financial openness, and resident income gap," Finance Research Letters, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:finlet:v:88:y:2026:i:c:s154461232502327x
    DOI: 10.1016/j.frl.2025.109078
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    References listed on IDEAS

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