Digital Inequality and Household Income Distribution: Evidence from Rural China

Utilizing the data from China Rural Revitalization Survey (CRRS), this study analyzes the impact of digital inequality on income distribution. The findings reveal that digital inequality has a significant negative effect on household income, with a more pronounced inhibitory effect on low-income households. Additionally, digital inequality widens income inequality within households, with a more significant negative effect on the middle-income group. The further analysis suggests that households do not passively respond to the impact of digital inequality but rather improve their livelihood diversity, particularly for higher-income groups. Based on these results, this study suggests that attention should be given to the issue of inequality in the process of digital technology transformation. It recommends creating development opportunities through digital technology, expanding income-generating opportunities for households, enhancing the sense of economic well-being among economically disadvantaged households, and building a future of digitalization that is fair, inclusive, and sustainable.