Broadband Infrastructure Construction and Consumption Inequality

This study examined the impact of broadband infrastructure on household consumption inequality in China. Using panel data from 2012 to 2018 and employing a staggered difference-in-differences design, it found that the Broadband China program reduced relative consumption deprivation. The effect was driven primarily by increases in household income and social connections. Reductions in inequality were more pronounced in rural and inland areas, among younger households, and in regions with higher market segmentation. By contrast, an earlier policy that improved Internet speed without expanding access was associated with increased inequality. The findings suggest that digital infrastructure can shape the distributional effects of growth by improving access for disadvantaged groups.