Abstract
This article aims to investigate the relationship between financial literacy and the urban-rural income gap, based on the current social development situation and previous research by scholars. Utilizing CHFS data, we first selected the independent variables, dependent variables, and control variables, conducted descriptive statistics, and subsequently constructed a regression model. The analysis of the data reveals a negative correlation between financial literacy and the urban-rural income gap in both the entire region and the western region. Enhancing financial literacy contributes to narrowing the urban-rural income gap. Finally, we propose beneficial suggestions from the perspectives of the government, residents, and enterprises.
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