Internet use and income disparity: evidence from China

Abstract

Internet use has generated differential outcomes in the digital era, reshaping income distribution patterns globally. This study examines whether Internet use mitigates or exacerbates income disparity among Chinese residents. Using data from the Chinese General Social Survey (CGSS) 2017, this study conceptualizes Internet use through a three-phase framework encompassing access, ability, and outcomes. Grounded in Bourdieu’s capital conversion theory, we employ OLS regression, instrumental variable approaches, endogenous switching model, and moderating and mediating effect model to investigate the underlying mechanisms linking Internet use to income disparity. Key findings reveal that (1) all three phases of Internet use—access, ability, and outcomes—contribute to narrowing income disparity; (2) Internet usage ability amplifies the income disparity-reducing effects through a human capital reinforcement mechanism; and (3) Internet usage ability contributes to the reduction of income disparity through its conversion into Internet-derived social capital accumulation (one usage outcome). This study makes important theoretical contributions by systematically analyzing Internet use across multiple dimensions and elucidating the capital conversion mechanisms that underlie income disparity.

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