Item

Impact of mobile payment adoption on household expenditures and subjective well-being

He, Q
Ma, Wanglin
Vatsa, Puneet
Zheng, H
Date
2023-09-26
Type
Journal Article
Fields of Research
ANZSRC::350299 Banking, finance and investment not elsewhere classified , ANZSRC::380114 Public economics - publicly provided goods , ANZSRC::440404 Political economy and social change , ANZSRC::3502 Banking, finance and investment , ANZSRC::3801 Applied economics , ANZSRC::4404 Development studies
Abstract
This paper estimates the effects of mobile payment adoption on household expenditures and people's subjective well-being. We consider four categories of household expenditures (that on clothes, durable goods, consumer goods, and cultural and leisure activities) and four indicators (life satisfaction, contentment, income satisfaction, and depression) of subjective well-being. We use the Augmented Inverse Probability Weighting estimator to analyze the 2017 Chinese General Social Survey data while accounting for the selection bias inherent in mobile payment adoption. The empirical results show that people's decisions to adopt mobile payment are positively associated with their educational levels, car ownership, social interaction, internet penetration rate, and residential location. Mobile payment adoption significantly increases household expenditures on consumer goods and cultural and leisure activities but not on expenditures on clothes and durable goods. Moreover, mobile payment adoption significantly decreases people's contentment while increasing depression. We also find that mobile payment adoption significantly decreases the contentment of urban people but significantly increases the depression of rural people.
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© 2023 The Authors. Review of Development Economics published by John Wiley & Sons Ltd.
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