Abstract
This study examines the impact of mobile payment adoption on the level and inequality of food expenditure using the 2017 Chinese General Social Survey data. We employ the Gini coefficient to measure food expenditure inequality and use the two-stage predictor substitution approach to address the endogeneity of mobile payment adoption. The results show that mobile payment adoption is associated with lower food expenditure. Specifically, mobile payment adopters spend 2,347 yuan less annually on food than non-adopters. Furthermore, food expenditure inequality is lower among mobile payment adopters than non-adopters. Owning a car, education, and income are positively associated with food expenditure; food expenditure inequality is lower in the more advanced regions of China. The results suggest that mobile payments can play an important role in helping households save considerably on food expenditure, a necessary outlay constituting a significant proportion of the overall spending of Chinese households.
