Research on the impact and mechanism of digital capabilities and digital finance on household wealth in the context of aging

Abstract

China has entered a period of synchronous development between digitalization and aging. Based on the data from the China Household Finance Survey (CHFS), the partial least squares structural equation model (PLS-SEM) and multi-group analysis were used to analyze the impact mechanism of digital capabilities and digital finance on the wealth of elderly households. The results indicate that digital capabilities and digital finance can improve the wealth level of households headed by the elderly through direct and indirect paths. The indirect effects of digital capabilities and digital finance on elderly household wealth are all exerted through the node of business and property income, and entrepreneurship/investment are mediating variables. Moreover, digital capabilities have a greater impact on the wealth of elderly households in the central and western China regions, while digital finance has a greater impact in the eastern China regions. In addition, there is no significant difference in the effect of digital capabilities on business and property income across regions, while digital finance has a larger effect in the eastern region. The above conclusions can provide theoretical and practical support for realizing active aging and common prosperity in different countries and regions.