Abstract: Vigorous development of inclusive finance is an inevitable requirement for building China into a moderately prosperous society in all respects, which can promote social equity and common prosperity. Using data from the 2018 China Family Panel Studies (CFPS), this paper constructs a household common prosperity index from both material and spiritual dimensions. The study shows that digital inclusive finance significantly increases the level of household common prosperity, promoting residents’ material and spiritual affluence, especially material affluence; digital inclusive finance can promote residents’ common prosperity by upgrading household consumption and boosting economic vitality, while the digital divide weakens the influence of digital inclusive finance on common prosperity; from the perspective of new structural economics, the development of digital inclusive finance has a positive U-shaped relationship with common prosperity, and the increased penetration of digital inclusive finance can achieve better results in less economically developed and educationally disadvantaged areas.

Key words: digital inclusive finance, common prosperity, digital divide, New Structural Economics