Abstract: This paper, based on China's inter-provincial Panel data from 2011 to 2020, comprehensively employs the panel change point model to study the impact of digital inclusive finance and its various dimensions on the urban income gap, and analyze the regional differences under its impact on the urban-rural income gap. The results show that: 1) the development of digital inclusive finance can narrow the urban-rural income gap and contribute to common prosperity; 2) digital inclusive finance plays a more important role in reducing the urban-rural income gap in China's western region than it does in China's central and eastern regions; 3) the impact of digital inclusive finance and its various dimensions of development on the income gap between urban and rural residents is non-linear: with the improvement of development level, the income gap narrows at first, and widens later with three change points and four different stages. To promote economic development, improve the residents' income and achieve common prosperity, we should focus on improving the service quality of its specific business, and properly make policies weighted towards China's central and western regions; for provinces between the third change point, different development policies should be adopted to narrow the urban-rural income gap.

Key words: digital inclusive finance, urban-rural income gap, dimensional difference, regional difference, panel change point model