Exploring the Impact of Digital Economy on the Income Gap between Urban and Rural Residents
As a new form of economy, the digital economy is gradually promoting the improvement of residents' income levels and the development of social economy. By collecting data from 30 provinces and cities in China(ex-cluding Tibet, Hong Kong, Macao and Taiwan)from 2011 to 2020, this paper calculates the level of the digital econ-omy from three dimensions of digital economy infrastructure, Internet development, and digital financial inclusion, and explores the impact of the digital economy on the income gap between urban and rural residents using the fixed effect model. The results show that the digital economy has a significant inhibitory effect on the increase of income gap between urban and rural residents. The digital economy reduces the income gap between urban and rural resi-dents through the improvement of urbanization level and infrastructure level. The development of digital economy has regional heterogeneity in the income gap between urban and rural residents. After conducting robustness tests using the method of replacing core explanatory variables and conducting tail reduction, the conclusion still holds. Therefore, it is necessary to comprehensively promote the high-quality development of the digital economy and fur-ther narrow the income gap between urban and rural residents.
digital economyurban and rural residentsincome dispairtyfactor analysis methodfixed effects model