Abstract: To realize high-quality employment and income growth for the floating population is an important step to promote new urbanization and common prosperity. By making use of the data of 2011-2017 China Migration Dynamic Survey (CMDS) and China Digital Inclusive Financial Index, this paper conducts a study based on the two-way fixed effect and the mediation effect model. The findings show that the development of digital inclusive finance will hinder the entrepreneurship of the floating population. This inhibitory effect is due to the fact that the development of digital inclusive finance has increased the“non-entrepreneurial”employment income of the floating population and narrowed the relative income gap between the“entrepreneurship”and“non-entrepreneurship”of the floating population. The results of further test show that urban cultural diversity may weaken the income effect of the development of digital inclusive finance, thereby strengthening its hindering effect on the entrepreneurial behavior of the floating population. This shows that in order to expand the economic pie, narrow the income distribution gap, and ultimately achieve common prosperity through inclusive development, it is necessary not only to optimize the supporting role of digital inclusive finance to the entrepreneurship of floating population, and to expand their“non-entrepreneurship”income-increasing channels, but also to promote urban internal integration to reduce the negative effects of cultural exclusion.

Key words: digital inclusive finance, entrepreneurship, the floating population, relative income