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Does Fintech Narrow the Gender Wage Gap? Evidence from China

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  • Qing Guo
  • Siyu Chen
  • Xiangquan Zeng

Abstract

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.

Suggested Citation

  • Qing Guo & Siyu Chen & Xiangquan Zeng, 2021. "Does Fintech Narrow the Gender Wage Gap? Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(4), pages 142-166, July.
    • Handle: RePEc:bla:chinae:v:29:y:2021:i:4:p:142-166
    DOI: 10.1111/cwe.12382
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    Cited by:

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    3. Lucas A. Mariani & Jose Renato Haas Ornelas & Bernardo Ricca, 2023. "Banks’ Physical Footprint and Financial Technology Adoption," Working Papers Series 576, Central Bank of Brazil, Research Department.
    4. Qingyang Wu, 2024. "From bits to emissions: how FinTech benefits climate resilience?," Empirical Economics, Springer, vol. 67(5), pages 2009-2037, November.
    5. Siyu Chen & Qing Guo, 2024. "Fintech and MSEs Innovation: an Empirical Analysis," Papers 2407.17293, arXiv.org.
    6. Tobias Berg & Andreas Fuster & Manju Puri, 2022. "FinTech Lending," Annual Review of Financial Economics, Annual Reviews, vol. 14(1), pages 187-207, November.
    7. Johannes Treu, 2024. "Moving Beyond Silo Thinking: A Deductive Analysis of Financial Literacy, Financial Inclusion, FinTech, and the UN Sustainable Development Goals," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 16(2), pages 1-1, February.
    8. Orkun Saka & Barry Eichengreen & Cevat Giray Aksoy, 2022. "Epidemic Exposure, Financial Technology, and the Digital Divide," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 54(7), pages 1913-1940, October.
    9. Johannes Treu, 2023. "The Chance of FinTech to be a New General-Purpose Technology," International Business Research, Canadian Center of Science and Education, vol. 16(11), pages 1-22, November.
    10. Peisen LIU & Shiqi Chen & Yufeng XIA, 2023. "The Effect of Bank Competition and Rural Banks on Wages: Evidence from Agricultural Firms," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 5-24, December.
    11. Saka, Orkun & Eichengreen, Barry & Aksoy, Cevat Giray, 2021. "Epidemic Exposure, Fintech Adoption, and the Digital Divide," SocArXiv b6nv3_v1, Center for Open Science.
    12. Yanna He & Muzaffarjon Ahunov, 2022. "Financial Literacy: The Case of China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(5), pages 75-101, September.
    13. Treu, Johannes, 2023. "Finanzielle Allgemeinbildung, Finanzielle Inklusion, FinTech und SDG: Ein holistischer Rahmen," IU Discussion Papers - Business & Management 2 (April 2023), IU International University of Applied Sciences.
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    15. Dyah Titis Kusuma Wardani & Navi'ah Khusniati & Susilo Nur Aji Cokro Darsono, 2023. "Sociodemographic Effects on Financial Inclusion: Implications from Online Transaction in Developing-8 Countriesfrom Online Transaction in Developing-8 Countries Abstract: The world has reached the ind," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 69, pages 67-86, Juni.
    16. Chen, Siyu & Guo, Qing, 2023. "Fintech, strategic incentives and investment to human capital, and MSEs innovation," The North American Journal of Economics and Finance, Elsevier, vol. 68(C).
    17. Jiachen Han & Mingming Li & Shi Li & Yingying Hu, 2024. "The widening gender wage gap in the gig economy in China: the impact of digitalisation," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-16, December.
    18. Budi Setiawan & Thich Dai Phan & Jennifer Medina & Martijn Wieriks & Robert Jeyakumar Nathan & Maria Fekete-Farkas, 2024. "Quest for financial inclusion via digital financial services (Fintech) during COVID-19 pandemic: case study of women in Indonesia," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 459-473, June.
    19. Mr. Boileau Loko & Yuanchen Yang, 2022. "Fintech, Female Employment, and Gender Inequality," IMF Working Papers 2022/108, International Monetary Fund.
    20. Li, Bin & Guo, Fei & Xu, Lei & Meng, Siqi, 2024. "Fintech business and corporate social responsibility practices," Emerging Markets Review, Elsevier, vol. 59(C).
    21. Mariani, Lucas A. & Haas Ornelas, José Renato & Ricca, Bernardo, 2023. "Banks’ Physical Footprint and Financial Technology Adoption," IDB Publications (Working Papers) 12812, Inter-American Development Bank.
    22. Treu, Johannes, 2022. "FinTech, General Purpose Technology und Wohlfahrt," IU Discussion Papers - Business & Management 5 (Juni 2022), IU International University of Applied Sciences.
    23. Xinxin Ma, 2023. "Trade union and gender wage gap: Evidence from China," Economics Bulletin, AccessEcon, vol. 43(2), pages 1098-1110.
    24. MA, Xinxin & CHENG, Jie, 2023. "The Impact of Trade Unions on the Gender Wage Gap : Evidence from China," Discussion Paper Series 752, Institute of Economic Research, Hitotsubashi University.

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