Digital Finance and Settlement for Long Term: Evidence from Rural-Urban Migrants

This paper studies whether digital financial development encourages rural-urban migrants to settle down for a longer period of time. Using data from the China Migrants Dynamic Survey (CMDS) for periods 2014-2018, our results support an overall facilitating effect in the decision to stay for the long-term from a digital finance perspective. The effect of digital finance is more pronounced for migrants who are internet users, above high-school education, younger than 35 years old, with urban hukou, or intra-provincial migrants. Moreover, the availability of the formal finance supports long-term settlement for migrants who are older than 35, inter-provincial migrants, or self-employed.