Internet use and rural income inequality: evidence from China

Abstract

The integration of the digital transformation of agriculture and China’s ‘dual-carbon’ strategy for agriculture is new momentum for developing agriculture, reducing rural income inequality, and improving the subjective well-being of farm households. This paper uses data from the China Family Panel Studies (CFPS) in 2014, 2016, and 2018 to examine the impact of internet use on rural income inequality at the household level. The results show that internet use can significantly reduce rural income inequality by enhancing information availability and farm households’ nonfarm employment level. The results of a heterogeneity analysis reveal that the internet is more conducive to improving the income inequality of rural burdened families and families in Western China. Further analysis shows that improving income inequality can enhance the subjective well-being of farmer households. Accelerating the construction of digital villages, building internet skills cultivation systems, and focusing on the utility of internet use among vulnerable rural groups can reduce rural income inequality.

Keywords:

• Internet use
• digital village
• rural income inequality
• subjective well-being
• carbon peaking and carbon neutrality goals

JEL CLASSIFICATION:

• O12
• O13
• Q01
• Q12

Acknowledgements

For helpful many constructive comments and suggestions, we thank the editors and anonymous reviewers that have help to improve the quality and value of this paper. Xin Wei is the corresponding author of this paper.

Data availability statement

The data that support the findings of this study are available on request from the corresponding author.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 The SDGs, or the Global Goals, are the primary means for the United Nations to satisfy that demand, which is both emotional and existential.

2 General Office of the State Council “Several Opinions of the General Office of the State Council on Improving Support Policies to Promote Sustained Income of Farmers” [EB/OL] http://www.gov.cn/zhengce/content/2016-12/06/content_5143969.htm

3 The incomes gap multiplier is 6.12 means that the income of high-income group in urban China is 6.12 times higher than that of low-income group.

4 Calculations result from Statistical Yearbook.

5 Ministry of Agriculture and Rural Affairs Press Office. Two departments issued “Digital Agriculture Rural Development Plan (2019-2025)” [EB/OL] http://www.moa.gov.cn/xw/zwdt/202001/t20200120_6336380.htm.

6 CFPS started to ask questions about internet use starting in 2014; thus, this paper takes data from 2014, 2016 and 2018.

7 A total of 11,472 is the sample data size at the time of the multidimensional relative poverty measure; the subsequent regression and mechanism tests may have less than 11472 observations entering the regression due to the presence of some missing values for the newly added variables.