Can e-commerce bring dividends to rural households? New evidence from the income inequality perspective

Abstract

Income inequality is a major barrier to economic growth and social harmony. It is crucial to explore whether rural e-commerce development (RECD) can efficiently alleviate income inequality in rural households (IIRH). This study examines the impact of RECD on IIRH based on the 2020 China Rural Revitalization Comprehensive Survey data. This paper found that RECD exerts a substantial and positive impact on reducing IIRH, and this finding remains robust after a series of robustness checks. Furthermore, the paper also finds that this effect is stronger for rural households with higher levels of digital usage and human capital. Mechanism analysis further reveals that RECD reduces IIRH by increasing information availability, improving financial accessibility, and enhancing the capacity of rural households to manage their land independently. These findings provide insights for the future evolution of rural e-commerce as well as for the design of policies aimed at addressing IIRH.