The impact of Internet penetration on urban-rural income gap—Empirical evidence from panel data of prefecture-level cities
Based on the panel data of cities with subordinate districts from 2010-2020,this paper uses the fixed-effect model and spatial econometric model to empirically analyze the impact,transmission mechanism and spatial spillover effect of Internet penetration and urban-rural income gap.The results show that Internet penetration significantly reduces the urban-rural income gap,and the impact on the central and western regions is more significant.Internet penetration narrows urban-rural income gap through accelerating the transfer of rural labor force and promoting non-agricultural employment.Internet penetration has a significant spatial spillover effect on the urban-rural income gap,and has a positive impact on the narrowing of the urban-rural income gap in both local and neighboring regions.Accordingly,suggestions are put forward to deepen the development of the Internet,improve the non-agricultural employment level of rural residents,and maximize the spatial spillover effect of the Internet.
urban-rural income gapInternet penetrationlabor transferspatial spillover effect