Digital Village Construction, Income Structure and Rural Income Growth: Evidence from Peking University Digital Village Index and China Household Finance Survey

Xiang Cao; Pengcheng Liang; Nan Jia; Jiayang Yu; Chuanjiang Yu

doi:10.6981/FEM.202509_6(9).0008

Authors

Xiang Cao
Pengcheng Liang
Nan Jia
Jiayang Yu
Chuanjiang Yu

DOI:

https://doi.org/10.6981/FEM.202509_6(9).0008

Keywords:

Digital Village Construction; Income Growth; Non-Farm Income; Rural Household.

Abstract

As one of the most economical and convenient ways to connect rural areas to better economic opportunities, this paper provides empirical evidence on digital village building to improve rural household incomes and its main pathways. Utilizing county-level digital village index data from Peking University paired with the 2018 and 2020 CHFS survey, this study evaluates the influence of digital village construction on rural household’s income in China. The results confirm that digital village construction significantly improves household income, predominantly non-farm earnings, with wages being a prime contributor. Mechanism analysis reveals that digital village construction impacts household income via labor structure, land transfer, and working hours, stimulating both direct and indirect employment across various industries. Furthermore, it is found that digital village construction facilitates inclusive growth, amplifying incomes of marginalized groups such as low-income households, central-western regions, and lesser-educated populations. These findings can help in narrowing the income gap between urban and rural group.

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