From opportunity to inequality: how the rural digital economy shapes intra-rural income distribution

Abstract

This paper examines the effect of rural digital economy development on intra-rural income inequality. Utilizing comprehensive rural survey dataset in China, the empirical findings suggest that rural digital economy has not led to inclusive growth, but instead has significantly exacerbated intra-rural income inequality. The mechanism analysis indicates that rural digital economy is more conducive to the non-agricultural employment, entrepreneurship, online learning behaviors, and human capital of high-income groups, thereby intensifying intra-rural income inequality. Furthermore, the presence of the digital divide further exacerbates the income inequality effect of rural digital economy development. The findings of this paper highlight the inequality issue in the process of rural digital economy development, underscoring the urgent need to accelerate the construction of an inclusive development path for the rural digital economy.

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