The Impact of the Digital Economy on Educational Income Inequity: Evidence from Household Survey in China

Abstract

The rapid development of the digital economy has brought profound changes related to income inequity, while its impact on educational income inequity remains unclear, and this paper attempts to fill the gap. The purpose of this paper is to investigate the impact of the digital economy on educational income inequity. Using data from the Chinese General Social Survey, we employ the Theil index to measure educational income inequity, capturing income disparities associated with education. Our findings, based on a two-way fixed effects model, suggest that the digital economy mitigates educational income inequity in China, with a stronger effect at the family level than at the individual level. Mechanism analysis indicates that this reduction is primarily driven by the positive economy effects of digitalization. Additionally, the digital economy not only narrows disparities in labor income but also enhances equity in opportunity and effort. Finally, the effect of the digital economy on educational income inequity is more pronounced in cities with stronger economic foundations, better public services, and more advanced telecommunications infrastructure.