Digital infrastructure and urban-rural income gap: Empirical evidence from China

As a cornerstone of national digital transformation strategies, digital infrastructure offers a promising pathway to address urban–rural dualism, narrow income disparities, and advance common prosperity. Using provincial panel data from 30 Chinese regions over 2011–2022, this study empirically examines how digital infrastructure affects the urban–rural income gap. Our results show that digital infrastructure significantly reduces this gap. Mediation analysis identifies three key transmission channels: expansion of non-agricultural employment, enhancement of technological innovation, and upgrading of industrial structure. The gap-reducing effect is notably stronger in central China and in provinces with higher levels of economic development. Importantly, the application layer of digital infrastructure demonstrates substantially greater effectiveness than the physical construction layer. These findings provide actionable insights for policymakers seeking to optimize digital infrastructure investments to promote inclusive growth and reduce spatial gaps.