Digital financial inclusion and educational equity: Evidence from Chinese household survey data

This study examines the impact of digital financial inclusion (DFI) on intra-household educational equity using data from the China Family Panel Studies (CFPS). Employing high-dimensional fixed-effects models and instrumental variable approaches, we find that DFI significantly reduces inequality in educational resource allocation, as measured by the education Gini coefficient. Mechanism analysis shows that this equalizing effect operates primarily through the alleviation of household credit constraints and increased willingness to invest in education. In addition, heterogeneity analysis reveals that the impact of DFI is more pronounced among households with lower parental education levels and in southern China, where digital infrastructure is more developed, while the effect remains limited in rural areas. These findings provide micro-level evidence on how digital financial development can promote educational equity and highlight the importance of expanding inclusive financial services to support human capital development in developing contexts.