The Impact of Internet Usage on the Growth of Rural Household Income: An Analysis Based on CFPS Data

Yuting Xie

doi:10.6918/IJOSSER.202503_8(3).0024

Authors

Yuting Xie

DOI:

https://doi.org/10.6918/IJOSSER.202503_8(3).0024

Keywords:

Internet usage; Rural household income; Human capital; Social capital; Wealth capital.

Abstract

Employing the data from the 2020 China Family Panel Studies (CFPS), a comprehensive measurement of internet usage was conducted at the micro level using a composite indicator to investigate the influence and mechanism of internet usage on the income of rural households. The group regression method was adopted to analyze the differentiated effects of internet usage on the income of rural households in different groups. The research findings indicate that: (1) Internet usage promotes the increase in the income of rural households, with a more significant effect on enhancing the income of low-income groups; (2) The income-generating benefit of internet usage for the operational income of rural households is higher than that of wage income and property income. For rural households with a household head under 65 years old and a high level of internet usage, the effect of internet usage on income increase is more prominent; (3) Internet usage affects the income of rural households by influencing the educational level of farmers, interpersonal expenditures, job search channels, and the per capita financial assets of the household. Based on the above research conclusions, the following policy suggestions are proposed: (1) Consolidate the foundation for internet development and enhance the construction of digital infrastructure in rural areas; (2) Increase public education expenditure and improve the rural education system; (3) Construct an internet information platform to smooth the channels for employment and entrepreneurship.

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