Research On The Impact Of Financial Availability On The Income Distribution Gap Between Urban And Rural Residents

In recent years,despite China’s rapid overall economic development,the income gap between urban and rural China remains wide,which has brought hidden dangers to social stability.As the essential requirement of socialism,common prosperity connotates the living conditions of people with a small gap between the rich and the poor,and addressing relative poverty,one of the hallmarks of which is the wide gap between urban and rural incomes,is a realistic requirement.Finance can help individuals increase their income by providing financial financing,however,differences in access to finance across regions and groups affect the income gap between urban and rural populations,and studying the impact of access to finance on the urban-rural income gap in China is crucial to promoting inclusive growth.At the same time,ease of access to finance affects rural residents’ purchases of financial products,which in turn affects their level of asset insurance and has an effect on their use of collective savings and income for human capital investment.Increased investment in human capital by rural households helps rural incomes move to higher income levels,and it serves as a bridge between financial access and the rural-urban income gap.Firstly,based on the theories of financial exclusion,financial deepening,inclusive growth and human capital,this paper analyses how financial accessibility affects the urban-rural income gap,followed by a hypotheses.Secondly,this paper constructs an index system that comprehensively considers online and offline financial availability,establishes a model,tests the hypothesis,and refines the analysis of the role of financial availability on the urban-rural income gap from the perspective of income sources.The paper then explores the differences in the effects of financial availability on the urban-rural income gap due to regional differences and different levels of financial availability.Finally,on the basis of theoretical and empirical analysis,it is concluded that financial availability can have a convergent effect on the urban-rural income gap in China,greatly reduced the wage income gap between urban and rural residents,increased the entrepreneurial income gap between urban and rural residents,and raised the entrepreneurial income level of rural residents.Farmers’ human capital investment plays a partly mediating role in the process of financial accessibility converging the urban-rural income gap;the effect of financial accessibility converging the urban-rural income gap is more obvious in the east and in regions with higher levels of financial accessibility.Based on the findings,this paper puts forward corresponding suggestions for the subjects concerned.