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Does Fintech Narrow the Gender Wage Gap? Evidence from China
Author(s) -
Guo Qing,
Chen Siyu,
Zeng Xiangquan
Publication year - 2021
Publication title -
china and world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.815
H-Index - 28
eISSN - 1749-124X
pISSN - 1671-2234
DOI - 10.1111/cwe.12382
Subject(s) - china , economics , wage , bargaining power , labour economics , gender gap , distribution (mathematics) , demographic economics , political science , mathematical analysis , mathematics , law , microeconomics
Information and communication technology promotes the rapid development of fintech, which has a far‐reaching impact on wage distribution in China. Using data from the Chinese General Social Survey and the Index of Digital Financial Inclusion, this study examines the impact of fintech on the gender wage gap. We find that fintech (i) narrows the gender wage gap; (ii) reduces capital constraints and operating costs, thereby promoting female entrepreneurship, driving more women into employment, and enabling women to increase their wages and bargaining power within the household; and (iii) positively impacts the wages of women (and men) who have lower family economic status, and helps women (but not men) counter the risk of decline in wages caused by childbearing and caring under the two‐child policy. These findings have important policy implications and provide evidence of women's improving economic conditions leading to a reduced gender wage gap.